Medina Co., Inc. was organized on July 1, 2014. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown on the next page.

Medina Co., Inc.
Trial Balance September 30, 2014 Unadjusted Adjusted Dr. Cr. Dr. Cr.
Cash $ 8,700 $ 8,700 Accounts Receivable 10,400 11,500 Supplies 1,900 650 Prepaid Rent 2,200 1,200 Equipment 20,000 20,000 Accumulated Depreciation—Equipment $ —0- cele 25 Notes Payable 10,000 10,000 Accounts Payable 3,200 3,200 Salaries and Wages Payable —0- 725 Interest Payable —0- 100 Unearned Rent Revenue 1,900 1,050 Common Stock 22,000 22,000 Dividends 1,000 1,000 Service Revenue 16,800 17,900 Rent Revenue 0 2,560 Salaries and Wages Expense 8,000 8,725 Rent Expense 1,900 2,900 Depreciation Expense ih AS Supplies Expense 15250 Utilities Expense 1,510 1,510 Interest Expense 100 $55,610 $55,610 $58,660 $58,660 Biecceuors

(b) Net income $4,850

(a) Journalize the adjusting entries that were made. Ending retalned éamings

(b) Prepare an income statement and a retained earnings statement for the 3 months end- $3,850 ing September 30 and a balance sheet at September 30. Total assets $40,925

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