(Solved by Humans)-Problem 4-6A Use of a Trial Balance as a Basis for Adjusting Entries Lori Matlock operates a...

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Problem 4-6A Use of a Trial Balance as a Basis for Adjusting Entries Lori Matlock operates a graphic arts business. A trial balance on June 30, 2014, before recording any adjusting entries, appears as follows: Matlock Graphic Arts Studio Unadjusted Trial Balance June 30, 2014 LO5       Debit   Credit   Cash $    7,000       Prepaid Rent 18,000       Supplies 15,210       Office Equipment 46,120       Accumulated  Depreciation—Equipment     $    4,000   Accounts Payable     1,800   Notes Payable     2,000   Capital Stock     50,000   Retained Earnings     24,350   Dividends 8,400       Revenue     46,850   Utilities Expense 2,850       Salaries Expense 19,420       Advertising Expense 12,000       Totals $129,000   $129,000     Other Data           a.  The monthly rent is  $600. b.  Supplies on hand on June 30, 2014, amount to $1,290. c.  The office equipment was purchased on June 1, 2013. On that date, it had an estimated useful  life of ten years and a salvage value of   $6,120. d.  Interest owed on the note payable but not yet paid amounts to   $50. e.  Salaries of $620 are owed but unpaid to employees at the end of the month.   (Continued )                 Required 1.        Prepare in general journal form the necessary adjusting entries at June 30, 2014. Label the entries (a) through (e) to correspond to the other data. 2.        Note that the unadjusted trial balance reports a credit balance in Accumulated Deprecia- tion—Equipment of $4,000. Explain why the account contains a balance of $4,000 on June 30, 2014.