Alpha's Graphics was organized on January 1, 2020, by Gabriel Alpha. At the end of the...
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Alpha's Graphics was organized on January 1, 2020, by Gabriel Alpha. At the end of the first 6 months of operations, the trial balance contained the following accounts. Debit Credit € 8,600 € 20,000 Notes Payable Accounts Payable Owner's Capital Cash Accounts Receivable 14,000 9,000 Equipment Insurance Expense Salaries and Wages Expense Supplies Expense Advertising Expense Rent Expense Utilities Expense 45,000 2,700 22,000 52,100 Sales Revenue 30,000 Service Revenue 6,000 3,700 1,900 1,500 1,700 €109,100 €109,100 Analysis reveals the following additional data. 1. The €3,700 balance in Supplies Expense represents supplies purchased in January. At June 30, €1,300 of supplies are on hand. 2. The note payable was issued on February 1. It is a 6%, 6-month note. 3. The balance in Insurance Expense is the premium on a one-year policy, dated April 1, 2020. 4. Service revenues are credited to revenue when received. At June 30, services revenue of €1,300 are unearned. 5. Revenue for services performed but unrecorded at June 30 totals €2,000. 6. Depreciation is €2,250 per year. Instructions a. Journalize the adjusting entries at June 30. (Assume adjustments are recorded every 6 months.) b. Prepare an adjusted trial balance. c. Prepare an income statement and owner's equity statement for the 6 months ended June 30 and a statement of financial position at June 30. Alpha's Graphics was organized on January 1, 2020, by Gabriel Alpha. At the end of the first 6 months of operations, the trial balance contained the following accounts. Debit Credit € 8,600 € 20,000 Notes Payable Accounts Payable Owner's Capital Cash Accounts Receivable 14,000 9,000 Equipment Insurance Expense Salaries and Wages Expense Supplies Expense Advertising Expense Rent Expense Utilities Expense 45,000 2,700 22,000 52,100 Sales Revenue 30,000 Service Revenue 6,000 3,700 1,900 1,500 1,700 €109,100 €109,100 Analysis reveals the following additional data. 1. The €3,700 balance in Supplies Expense represents supplies purchased in January. At June 30, €1,300 of supplies are on hand. 2. The note payable was issued on February 1. It is a 6%, 6-month note. 3. The balance in Insurance Expense is the premium on a one-year policy, dated April 1, 2020. 4. Service revenues are credited to revenue when received. At June 30, services revenue of €1,300 are unearned. 5. Revenue for services performed but unrecorded at June 30 totals €2,000. 6. Depreciation is €2,250 per year. Instructions a. Journalize the adjusting entries at June 30. (Assume adjustments are recorded every 6 months.) b. Prepare an adjusted trial balance. c. Prepare an income statement and owner's equity statement for the 6 months ended June 30 and a statement of financial position at June 30.
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Related Book For
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
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