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Alpha Graphics Company

1) The document provides adjusting journal entries for Alpha Graphics Company for June 30 including an increase to supplies expense and prepaid insurance expense along with increases to interest expense, depreciation expense, and unearned revenue. 2) An adjusted trial balance is presented including account balances for assets, liabilities, equity, revenues and expenses. 3) Financial statements are shown including an income statement for the 6 months ended June 30, an owner's equity statement, and a balance sheet dated June 30.

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Mira Febriasari
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203 views2 pages

Alpha Graphics Company

1) The document provides adjusting journal entries for Alpha Graphics Company for June 30 including an increase to supplies expense and prepaid insurance expense along with increases to interest expense, depreciation expense, and unearned revenue. 2) An adjusted trial balance is presented including account balances for assets, liabilities, equity, revenues and expenses. 3) Financial statements are shown including an income statement for the 6 months ended June 30, an owner's equity statement, and a balance sheet dated June 30.

Uploaded by

Mira Febriasari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Alpha Graphics Company

(a) Journalize the adjusting entries at June 30. (Assume adjustments are recorded every 6 months.):
No Account Debit Credit
1 Supplies $ 680
Expense Supplies $ 680
2 Interest Expense $ 750
Interest Payable $ 750
3 Prepaid Insurance $ 1,920
Insurance Expense $ 1,920
4 Unearned Revenue $ 1,100
Service Revenue $ 1,100
5 Depreciation Expense $ 1,125
Accumulated Depreciation $ 1,125

TOTAL $ 5,575 $ 5,575

(b) Adjusted trial balance:


Account Debit Credit
Cash                             $ 8,400
Accounts Receivable     $ 14,000
Equipment                     $ 45,000
Insurance Expense           $ 960
Prepaid Insurance         $ 1,920
Salaries Expense         $ 30,000
Supplies Expense         $ 3,220
Supplies                       $ 680
Advertising Expense     $ 1,900
Rent Expense                 $ 1,500
Utilities Expense           $ 1,700
Notes Payable                             $ 20,000
Interest Expense             $ 750
Interest Payable                                     $ 750
Depreciation Expense   $ 1,125
Accumulated Depreciation               $ 1,125
Accounts Payable                               $ 9,000
Share Capital-Ordinary $ 22,000
Service Revenue                           $ 58,280
Total                         $ 111,155 $ 111,155

(c.1) Income statement for the 6 months ended June 30:


Alpha Graphics Company
Income Statement
For the 6-Months Ended June 30, 2014
Revenues: Amount Amount
Service Revenue $ 58,280
Total Revenue                             $ 58,280
Less Expenses:
Insurance Expense           $ 960
Salaries Expense         $ 30,000
Supplies Expense           $ 3,220
Advertising Expense       $ 1,900
Rent Expense                 $ 1,500
Utilities Expense             $ 1,700
Interest Expense             $ 750
Depreciation Expense   $ 1,125
Total Expenses $ 41,155
Net Income                                     $ 16,025

(c.2) Owner's equity statement for the 6 months ended June 30:
Alpha Graphics Company
Owner's Equity Statement
For the 6-Months Ended June 30, 2014

Owner's Capital, January 1     $ 22,000


Add: Net Income $ 16,025
Owner's Capital, June 30     $ 38,025

(c.3) Balance sheet at June 30:


Alpha Graphics Company
Balance Sheet
For the 6-Months Ended June 30, 2014
Assets: Amount Amount
Cash                                               $ 8,400
Accounts Receivable                       $ 14,000
Prepaid Insurance                       $ 1,920
Supplies                                             $ 680
Equipment                                       $ 45,000
Less: Accumulated Depreciation -1,125 $ 43,875
Total Assets                                 $ 68,875

Liabilities + Equity:
Liabilities
Notes Payable                             $ 20,000
Interest Payable                                   $ 750
Accounts Payable                             $ 9,000
Unearned Revenue $ 1,100
Total Liabilities $ 30,850
Equity
Owner's capital, June 30                    $ 38,025
Total Liabilities + Equity             $ 68,875

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