Mason Advertising Agency Inc. was founded in January 2013. Presented below are adjusted and unadjusted trial balances as of December 31, 2017.

"Instructions: 

a) Journalize the annual adjusting entries that were made (Omit explanations.)" 

b) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2017 and an unclassified balance sheet at December 31. 

c) Answer the following questions: 

1. If the note has been outstanding three months, what is the annual interest rate on that note? 

2. If the company paid $12,500 in salaries and wages in 2017, what was the balance in Salaries and Wages Payable on December 31, 2016?

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Mason Advertising Agency Inc. Trial Balance December 31, 2017 Unadjusted Adjusted Cash Accounts Receivable Supplies Prepaid insurance $11,000 20,000 8,400 $11,000 23,500 3,000 2,500 60,000 60,000 Accumulated depreciation equipment Accounts payable Interest payable Notes payable Unearned revenue Salaries and wage payable Common shares Retained earnings Service revenue Salaries and wage expense Insurance expenses Interest expense $28,000 5,000 33,000 5,000 150 5,000 5,600 5,000 7,000 10,000 3,500 58,600 10,000 3,500 6 11,300 850 500 5,000 5,400 4,000 10,000 350 Supplies expense Rent expense 4,000 S117,100 S117,100$127,050 S127,050