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Journal Entries, Trial Balance, Income Statement and Retained Earnings

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*P2-6A 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.

Debits Credits
Cash $ 9,500 Notes Payable $ 17,000
Accounts Receivable 14,000 Accounts Payable 9,000
Equipment 45,000 Common Stock 25,000
Insurance Expense 1,800 Graphic Revenue 52,100
Salaries Expense 30,000 Consulting Revenue 6,000
Supplies Expense 3,700
Advertising Expense 1,900
Rent Expense 1,500
Utilities Expense 1,700
$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, $1,300 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.)
(b) Prepare an adjusted trial balance.
(c) Prepare an income statement and a retained earnings statement for the 6 months ended June 30 and a balance sheet at June 30.

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Please find my response in the attached file.

*P2-6A 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.

Debits Credits
Cash $ 9,500 Notes Payable $ 17,000
Accounts Receivable 14,000 Accounts Payable 9,000
Equipment 45,000 Common Stock 25,000
Insurance Expense 1,800 Graphic Revenue 52,100
Salaries Expense 30,000 Consulting Revenue 6,000
Supplies Expense 3,700
Advertising Expense 1,900
Rent Expense 1,500
Utilities Expense 1,700
$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, $1,300 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 ...

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This solution is comprised of a detailed explanation to answer the request of the assignment in text file.

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Trial Balance and Journal Entries and Income Statements

The trial balance columns of the work sheet for Phantom Roofing Inc. at March 3l, 2002, are as follows:
PHANTOM ROOFING INC.
Work Sheet
? For the Month Ended March 31, 2002
Trial balance
Account titles______ Debit Credit
Cash 2,500
Accounts receivable 1,600
Roofing supplies 1,100
Equipment 6,000
Accumulated depreciation-Equipment 1,200
Accounts payable 1,100
Unearned revenue 300
Common stock 5,000
Retained earnings 2,000
Dividends 600
Service revenue 3.000
Salaries expense 700
Miscellaneous expense 100
12,600 12.600
Other data:
(1) A physical count reveals only $220 of roofing supplies on hand.
(2) Depreciation for March is $200.
(3) Unearned revenue amounted to $200 after adjustment on March 31.
(4) Accrued salaries are $400.
Instructions:
(a) Enter the trial balance on a work sheet and complete the work sheet.
(b) Prepare an income statement and owner's equity statcment for the month of March and a classified balance sheet at March 31. No additional issuances of stock occurred in March.
(c) Journalize the adjusting entries from the adjustments columns of the work sheet.
(d) Journalize the closing entries from the financial statement columns of the work sheet.

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