Reference no: EM13984534
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.
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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 6 months.)