Ortega Co. was organized on July 1, 2008. 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 an owner's equity statement for the 3 months ending September 30 and a balance sheet at September 30.

(c) If the note bears interest at 12%, how many months has it been outstanding?

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ORTEGA CO. Trial Balance September 30, 2008 Unadjusted Adjusted Dr. Cr. Dr. Cr. Cash Accounts Receivable Supplies Prepaid Rent $ 6,700 400 1,200 $6,700 900 1,000 1,500 Equipment Accumulated Depreciation-Equipment Notes Payable 15,000 900 15,000 $ 350 $ 5,000 5,000 Accounts Payable Salaries Payable Interest Payable 1,510 1,510 600 50 Unearned Rent 900 500 Jose Ortega, Capital 14,000 14,000 Jose Ortega, Drawing 600 600 Commission Revenue 14,000 14,500 Rent Revenue 400 800 Salaries Expense 9,000 9,600 Rent Expense 900 1,500 Depreciation Expense 350 Supplies Expense 200 Utilities Expense 510 510 Interest Expense 50 $35.810 $35,810 $37,310 $37,310