Delgado Advertising Agency was founded by Maria Delgado in January of 2013. Presented below 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 an owner’s equity statement for the year ending December 31, 2014, and a balance sheet at December 31.
(c) Answer the following questions.
(1) If the note has been outstanding 6 months, what is the annual interest rate on that note?
(2) If the company paid $12,500 in salaries in 2014, what was the balance in Salaries and Wages Payable on December 31,2013?

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DELGADO ADVERTISING AGENCY Trial Balance December 31, 2014 Unadjusted Adjusted T. T. Cr Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Interest Payable Notes Payable Unearned Service Revenue Salaries and Wages Payable Owner's Capital Owners Drawings Service Revenue Salaries and Wages Expense Insurance Expensoe Interest Expense Depreciation Expense Supplies Expense Rent Expense 11,000 20,000 8,600 3,350 60,000 11,000 21,500 4,800 2,500 60,000 $ 28,000 34,000 5,000 150 5,000 5,900 2,100 25,500 5,000 5,000 7,200 25,500 58,600 12,000 10,000 350 12,000 61,400 12,100 850 500 6,000 3,800 4,000 4,000 $129,300 $129,300 $139,050 $139,050