Interest for the period from October 1 to December 31 is unpaid and unrecorded.

g. Income taxes at 30 percent are owed but unrecorded and unpaid.

Required:

. Prepare the adjusting entries.

. Prepare an income statement, a statement of changes in retained earnings, and a balance sheet using adjusted account balances.

. Why would you not want to prepare financial statements until after the adjusting entries are made?