Problem - Givens Graphics Company was organized on January 1, 2008, by Sue Givens. At the end of the first 6 months of operations, the trial balance contained the following accounts.
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Debits
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Credits
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Cash
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$10,450
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Notes Payable
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$21,200
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Accounts Receivable
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15,200
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Accounts Payable
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9,950
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Equipment
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46,200
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Common Stock
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23,200
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Insurance Expense
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1,900
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Graphic Revenue
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50,900
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Salaries Expense
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28,800
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Consulting Revenue
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6,100
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Supplies Expense
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3,750
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Advertising Expense
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1,850
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Rent Expense
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1,550
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Utilities Expense
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1,650
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$111,350
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$111,350
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Analysis reveals the following additional data.
1. The $3,750 balance in Supplies Expense represents supplies purchased in January. At June 30, $1,300 of supplies was on hand.
2. The note payable was issued on February 1. It is a 9%, 6-month note.
3. The balance in Insurance Expense is the premium on a one-year policy, dated March 1, 2008.
4. Consulting fees are credited to revenue when received. At June 30, consulting fees of $1,450 are unearned.
5. Graphic revenue earned but unrecorded at June 30 totals $2,100.
6. Depreciation is $2,100 per year.
Instructions
(a) Journalize the adjusting entries at June 30. (Assume adjustments are recorded every 6 months.)
(b) Prepare an adjusted trial balance. (If an amount should be blank, enter a zero. All boxes must be filled to be correct.)