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.

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