Flynn Design was founded by Kevin Flynn in January 2014. Presented below is the adjusted trial balance as of December 31, 2019.

Instructions
a. Prepare an income statement and a retained earnings statement for the year ending December 31, 2019, and an unclassified statement of financial position at December 31.
b. 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 ‚¬17,500 in salaries and wages in 2019, what was the balance in Salaries and Wages Payable on December 31, 2018?

Transcribed Image Text:

Flynn Design Adjusted Trial Balance December 31, 2019 Dr. Cr. € 10,000 Cash Accounts Receivable 21,500 Supplies 5,000 Prepaid Insurance 2,500 Equipment 60,000 € 35,000 Accumulated Depreciation-Equipment Accounts Payable 8,000 Interest Payable 150 Notes Payable 5,000 Unearned Service Revenue 5,600 Salaries and Wages Payable 1,300 Share Capital-Ordinary 10,000 Retained Earnings 3,500 Service Revenue 58,500 Salaries and Wages Expense 12,300 Insurance Expense 850 Interest Expense 500 Depreciation Expense 7,000 Supplies Expense 3,400 Rent Expense 4,000 €127,050 €127,050