Mason Advertising Agency was founded in January 2015. Presented below are adjusted and unadjusted trial balances as of December 31, 2019.

Instructions
a. Journalize the annual adjusting entries that were made. (Omit explanations.)
b. 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.
c. Answer the following questions.
1. If the note has been outstanding 3 months, what is the annual interest rate on that note?
2. If the company paid €12,500 in salaries in 2019, what was the balance in Salaries and Wages Payable on December 31, 2018?