Lausanne Co., AG was organized on July 1, 2017. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown below.

Instructions
(a) Journalize the adjusting entries that were made.
(b) Prepare an income statement and a retained earnings statement for the 3 months ending September 30 and a statement of financial position at September 30.
(c) If the note bears interest at 12%, how many months has it been outstanding?

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LAUSANNE CO., AG Trial Balance September 30, 2017 Unadjusted Cr Adjusted Dr. Cr Cash Accounts Receivable Supplies CHF 8,700 10,400 1,900 2,200 20,000 CHF 8,700 5 11,500 Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Salaries and Wages Payable Interest Payable Unearned Rent Revenue Share Capital-Ordinary Dividends Service Revenue Rent Revenue Salaries and Wages Expense Rent Expense Depreciation Expense Supplies Expense Utilities Expense Interest Expense 20,000 CHF -0- 10,000 3,200 CHF 1,200 10,000 3,200 725 1,900 22,000 22,000 1,000 1,000 16,800 1,710 1 17,900 2,760 8,000 1,900 8,725 2,900 1,200 1,250 1,510 100 1 1,510 CHF55,610 CHF55,610 CHF58,735 CHF58,735