Gabriel’s Graphics Company was organized on January 1, 2020, by Gabriel Medina. 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 balance sheet at June 30.

Gabriel's Graphics Company

a. Adjusting Journal Entries:

Debit Supplies Expense $2,400

Credit Supplies $2,400

To record supplies expenses for the period.

Debit Interest Expense $1,000

Credit Interest Payable $1,000

To record interest accrued.

Debit Insurance Expense $675

Credit Prepaid Insurance $675

To record insurance expense for the period.

Debit Services Revenue $1,300

Credit Unearned Services Revenue $1,300

To record unearned services revenue.

Debit Accounts Receivable $2,000

Credit Services Revenue $2,000

To record revenue for services performed but unrecorded.

Debit Depreciation Expense $1,125

Credit Accumulated Depreciation $1,125

To record depreciation expense.

b. Adjusted Trial Balance:

Account Titles               Debit           Credit

Cash                              $8,600

Accounts receivable     16,000

Equipment                    45,000

Insurance Expense            675

Prepaid Insurance          2,025

Salaries & Wages Exp. 30,000

Supplies Expense          2,400

Supplies                          1,300

Advertising expense      1,900

Rent expense                 1,500

Utilities expense            1,700

Interest expense           1,000

Depreciation expense   1,125

Accumulated Depreciation                $1,125

Notes Payable                                  20,000

Interest Payable                                  1,000

Accounts Payable                              9,000

Owner's capital                               22,000

Sales Revenue                                 52,100

Services Revenue                             6,700

Unearned Services Revenue            1,300

Totals                       $113,225     $113,225

c. Income Statement for the six months ended June 30:

Sales Revenue                                 $52,100

Services Revenue                                6,700

Total Revenue                                 $58,800

Insurance Expense            675

Salaries & Wages Exp. 30,000

Supplies Expense          2,400

Advertising expense      1,900

Rent expense                 1,500

Utilities expense            1,700

Interest expense           1,000

Depreciation expense   1,125         40,300

Net Income                                    $18,500

Owner's Equity Statement for the six months ended June 30:

Owner's Capital               $22,000

Net Income                         18,500

Equity Balance                $40,500

Balance Sheet at June 30:

Assets:

Cash                            $8,600

Accounts Receivable  16,000

Supplies                         1,300

Prepaid Insurance        2,025

Equipment      45,000

Less Acc. dep.   1,125 43,875

Total assets               $71,800

Liabilities + Equity:

Notes Payable         $20,000

Interest Payable           1,000

Accounts Payable       9,000

Unearned Revenue     1,300

Owner's equity         40,500

Total Liab. + Equity $71,800

Step-by-step explanation:

a) Data and Calculations:

1. Supplies Expense = $2,400 ($3,700 - 1,300)

  Supplies balance = $1,300

2. Interest Expense on Note Payable = $1,000 ($20,000 * 6% * 5/6)

3.Insurance Expense: $675 ($2,700 * 3/12)

Prepaid Insurance = $2,025 ($2,700 - 674)

4. Unearned Services Revenue = $1,300

5. Earned Services Revenue = $6,700 ($6,000 - 1,300 + 2,000)

6. Depreciation = $1,125 ($2,250/2)

Accounts Receivable:

As per unadjusted trial balance $14,000

Services Revenue                          2,000

As per adjusted trial balance     $16,000

(x+3)(x+7)

step-by-step explanation:

0.0076, if you meant 4.125 divided by 0.03125 it would be 132

step-by-step explanation:

first you have to move the decimal in 0.03125 over until its behind the 5 which is 5 places over. now the number is 3125

then you have to move the decimal in 4.125, 5 places over. now the number is 4,112,500.

now you divide like you would normally would and get 0.0076