ABC Company, Inc. was organized on January $1,2014.$ At the end of the first $6$ months of operations, the trial balance contained the accounts shown below.

Debit $($$$)$ Credit $($$$)$

Cash $8,400$ Notes Payable $20,000$

Accounts Receivable $14,000$ Accounts Payable $9,000$

Equipment $45,000$ Share Capital $22,000$

Insurance Expense $2,880$ Sales $58,280$

Salaries and Wages Expense $30,000$

Supplies Expense $3,900$

Advertising Expense $1,900$

Rent Expense $1,500$

Utilities Expense $1,700$

$-------------------$

$109,280109,280$

Analysis reveals the following additional data.

The $$3,900$ balance in Supplies Expense represents supplies purchased in January. At June $30,$ $$680$ of supplies are on hand.

The note payable was issued on February $1.$ It is a $9\%,6-$month note.

The balance in Insurance Expense is the premium on a one$-$year policy, dated March $1,2014.$

Service revenues are credited to revenue when received. At June $30,$ service revenue of $$1,100$ is still not performed for the customer.

Depreciation is $$2,250$ per year.

Instructions

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

Prepare an adjusted trial balance.

Prepare an income statement and a statement of financial position at June $30.$