Sorenstam Advertising AG was founded in January 2015. The following are the adjusted and unadjusted trial balances

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Sorenstam Advertising AG was founded in January 2015. The following are the adjusted and unadjusted trial balances as of December 31, 2019.

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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, 2019.
c. Answer the following questions.
1. If the useful life of equipment is 6 years, what is the expected residual value?
2. If the note has been outstanding 3 months, what is the annual interest rate on that note?
3. If the company paid €12,500 in salaries and wages in 2019, what was the balance in Salaries and Wages Payable on December 31, 2018?
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Related Book For  book-img-for-question

Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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