Abdulla Advertising Agency was founded by Miriam Abdulla in January 2009. Presented here are both the adjusted and unadjusted trial balances as of December 31, 2014.

Instructions
(a) Journalize the annual adjusting entries that were made.
(b) Prepare an income statement and a retained earnings statement for the year ended December 31, and a classified balance sheet at December 31.
(c) Identify which accounts should be closed on December 31.
(d) If the note has been outstanding 10 months, what is the annual interest rate on that note?
(e) If the company paid $10,000 in salaries in 2014, what was the balance in Salaries and Wages Payable on December 31,2013?

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ABDULLA ADVERTISING AGENCY Trial Balance December 31, 2014 Unadjusted Dr. Adjusted Dr. Cr. Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation- $11,000 19,000 7,000 1,790 60,000 11,000 16,000 9,400 3,350 60,000 Equipment Notes Payable Accounts Payable Interest Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense 25,000 8,000 2,000 0 5,000 0 20,000 5,500 30,000 8,000 2,000 560 3,100 820 20,000 5,500 10,000 10,000 57,600 62,500 9,000 Interest Expense Depreciation Expense Supplies Expense Rent Expense 9,820 1,560 560 5,000 2,400 4,350 4,350 $123,100 $123,100 $132,480 132,480