[sarahadham]

Company was organized on January 1, 2010, 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 $20,000 was issued on February 1. It is a 9%, 6-month note.
3. The balance in Insurance Expense is $1,800 the premium on a one-year policy, dated March 1, 2010.
4. Consulting fees are credited to revenue when received. At June 30, consulting fees of $1,500
Are unearned.
5. Graphic revenue earned but unrecorded at June 30 totals $2,000.
6. Depreciation is $2,000 per year.
Instructions.

Journalize the adjusting entries at June 30. (Assume adjustments are recorded every 6 months.)

[pready]

1. You need to transfer the supplies onhand amount from the expense account to the Supplies account

2. You need to calculate the interest payable on the note.

3. You need to calculat the insurance that was used in the period. This is the amount that should be in your expense account, The extra amount needs to be transferred to your Prepaid Insurance account.

5. You need to record the earned revenue.

6. You need to record the depreciation expense