Adjusting the Accounts

Johnson Graphics Company was organized on January 1, 2019, by Cameron Johnson. At the end of the first 6 months of operations, the trial balance contained the accounts shown as follows
Analysis reveals the following additional data.
  1. The $3,700 balance in Supplies Expense represents supplies purchased in January. At June 30, $1,500 of supplies are on had.
  2. The note payable was issued on February 1. It is a 9%, 6-month note.
  3. The balance in Insurance Expense is the premium on a one-year policy, dated March 1, 2019.
  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.


  1. Journalize the adjusting entries at June 30. (Assume adjustments are recorded every 6 months.)
  2. Prepare an adjusted trial balance.
  3. Prepare an income statement and an owner’s equity statement for the 6 months ended June 30 and a balance sheet at June 30.


Johnson Graphics Company
Adjusting Journal


Johnson Graphics Company
Adjusted Trial Balance
June 30, 2019


Johnson Graphics Company
Income Statement
For the 6-Months Ended Juner 30, 2019
Johnson Graphics Company
Owner's Equity Statement
For the 6-Months Ended June 30, 2019

Johnson Graphics Company
Balance Sheet
June 30, 2019
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