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Question: Alpha Graphics Company was organized on
January 1, 2017. At the end of the rst 6 months of oper...

Alpha Graphics Company was organized on January 1, 2017. At the end of the rst 6 months of operations,
the trial balance contained the accounts shown below.
Show transcribed image text

Expert Answer

Anonymous
answered this

1. Journal Entries at June 30

No. Date Accounts Titles and Explanations

1 Jun-30 Supplies
 Supplies Expense

(Balance supplies recognised as current assets)

2 Jun-30 Interest Expense

Interest Accrued

(interest on notes payble (19,200x5monthsx9%/12)

3 Jun-30 Prepaid insurance

Insurance Expense

(Insurance paid for a year will not be recognised fully expense, p

4 Jun-30 Service Revenue

Unearned Service Revenue

(recognised unearned service revenue)

5 Jun-30 Depreciation

Accumulated Depreciation

(recognised depreciation on equipment)

2 ALPHA GRAPHICS COMPANY, SA

Adjusted Trial Balance

Debit Credit

Cash €        8,582.00

Accounts Receivable €     14,360.00

Equipment €     44,944.00

Insurance Expense €           900.00

Prepaid insurance €        1,800.00

Salaries and Wages Expense €     29,586.00

Supplies €           825.00

 Supplies Expense €        2,865.00

Advertising Expense €        1,752.00

Rent Expense €        1,573.00

Utility Expense €        1,733.00

Interest Expense €           720.00

Depreciation €        2,420.00

Accumulated Depreciation €        2,420.00

Unearned Service Revenue €        1,344.00

Interest Accrued €           720.00

Notes Payable €     19,200.00

Accounts Payable €        9,110.00

Share Capital-Ordinary €     22,007.00

Service Revenue €     57,259.00

Total € 1,12,060.00 € 1,12,060.00

3 ALPHA GRAPHICS COMPANY, SA

Income Statement

Service Revenue €            57,259.00

Insurance Expense €       900.00

Salaries and Wages Expense € 29,586.00

Supplies Expense €    2,865.00

Advertising Expense €    1,752.00

Rent Expense €    1,573.00

Utility Expense €    1,733.00

Interest Expense €       720.00

Depreciation €    2,420.00

Total Expenses €            41,549.00

Net Pro t €            15,710.00

4 ALPHA GRAPHICS COMPANY, SA

 Retained Earnings Statement

Net Pro t €    15,710.00

5 ALPHA GRAPHICS COMPANY, SA

Statement of Financial Position

Assets

Cash €                     8,582.00

Accounts Receivable €                   14,360.00

Prepaid insurance €                     1,800.00

Supplies €                         825.00

Total current assets €         25,567.00

Equipment €                   44,944.00

Total non-current assets €         44,944.00

€         70,511.00

Equity and Liabilities

Share Capital-Ordinary €                   22,007.00

Retained Earnings €                   15,710.00

Total shareholder's Fund €         37,717.00

Accumulated Depreciation €                     2,420.00

Unearned Service Revenue €                     1,344.00

Interest Accrued €                         720.00

Notes Payable €                   19,200.00

Accounts Payable €                     9,110.00

Liabilities €         32,794.00

€         70,511.00

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