Global Graphics Company was organized on January 1, 2002. At the end of the first 6 months of operations, the trial balance contained the following accounts.

Debit Balance Total .......$109,100
Credit Balance Total .......$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 was on hand.
2. The note payable was issued on February 1. It is a 12%, 6-month note.
3. The balance in Insurance Expense is the premium on a one-year policy, dated March 1, 2002
4. Consulting fees are credited to revenue when received. At June 30, consulting fees of $1,100 are unearned.
5. Graphic revenue earned but unbilled at June 30 totals $2,000.
6. Depreciation is $2,000 per year.

Instructions
(a) Journalize the adjusting entries at June 30. (Assume adjustments are recorded every 6months.)

Transcribed Image Text:

Debits Credits Cash Notes Payable Accounts Receivable 14,000 Consulting Reveu Accounts Payable Equipment Common Stock Insurance Expense 1,800 tilities Expens S9,500 Graphic Revenue52,100 30,000 6,000 9,000 Supplies Expense3,700 45,000 Advertising Expense 1,900 1500 1,700 S17,000 Salaries Expense 25,000 Rent Expense