Olsen Graphics Company was organized on January 1, 2012, by Gwen Olsen. At the end of the first 6 months of operations, the trial balance contained the accounts shown below.

Debit credit

cash 8600 notes payable 20000

A/R 14000 account payable 9000

equipment 45000 owners capital 22000

insurance expense 2700 sales revenue 52100

salaries and wage expense 30000 service revenue 6000

supplies expense 3700

advertising expense 1900

rent expense 1500

utilities expense 1700

109,100 109,100

Analysis reveals the following additional data.

1. The $3,700 balance in Supplies Expense represents supplies purchased in January. At June 30, $1,500 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, 2012.

4. Service revenues are credited to revenue when received. At June 30, service revenue of $1,300 is unearned.

5. Sales revenue earned 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 June 30.