Sommer Graphics Company was organized on January 1, 2014, by Krystal Sommer. At the end of the first 6 months of operations, the trial balance contained the accounts shown below.

Analysis reveals the following additional data.
1. The $3,700 balance in Supplies Expense represents supplies purchased in January.
At June 30, $1,500 of supplies are 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,
2014.
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 balance sheet at June30.

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Debit Credit Cash Accounts Receivable Equipment Insurance Expensoe Salaries and Wages Expense Supplies Expense Advertising Expense Rent Expense Utilities Expense 8,600 Notes Payable 14,000 Accounts Payable 20,000 9,000 22,000 52,100 6,000 45,000 Owner's Capital 2,700 Sales Revenue 30,000 Service Revenue 3,700 1,900 1,500 1,700 $109,100 $109,100