31. Total assets 205 P3-3A Costello Advertising SpA was founded by Pat Costello in January 2016. Presented below are both the adjusted and unadjusted trial balances as of December 31, 2017 Prepare adjusting entri financial statements. (LO 5, 6, 7) COSTELLO ADVERTISING SPA Trial Balance December 31, 2017 Unadjusted Dr. Cr. Cash 11,000 Accounts Receivable 18,000 Supplies 8,600 Prepaid Insurance 3,350 Equipment 60,000 Accumulated Depreciation Equipment 26,000 Accounts Payable 5,000 Interest Payable -0- Notes Payable 5,000 Unearned Service Revenue 7,200 Salaries and Wages Payable Share Capital-Ordinary 20,000 Retained Earnings 5,500 Dividends 12,000 Service Revenue 58,600 Salaries and Wages Expense 10,000 Insurance Expense 350 Interest Expense Depreciation Expense Supplies Expense 4,000 Rent Expense Adjusted Dr. Cr. 11,000 23,500 5,000 2,500 60,000 33,000 5,000 150 5,000 5,600 1,300 20,000 5,500 12,000 65,700 11,300 850 500 7,000 3,600 4,000 141,250 141,250 74 SONY 127,300 127,300 Instructions (a) Journalize the annual adjusting entries that were made. (b) Prepare an income statement and a retained earnings statement for the year ending (b) Net income December 31, 2017, and a statement of financial position at December 31. Ending retai (c) Answer the following questions. earnings 3 Total assets (1) If the note has been outstanding 6 months, what is the annual interest rate on that note? (2) If the company paid 14,500 in salaries in 2017, what was the balance in Salaries (0) (1) 6% (2) 4,500 and Wages Payable on December 31, 2016? mber 31, 2017. pro- Preparing adiustir