6 P32 (Adiusting Entries and Financial Statements) Mason Advertising Agency was founded in January 56 2011. Presented below are adjusted and unadjusted trial balances as of December 31, 2015 MASON ADVERTISING AGENCY TRIAL BALANCE DECEMBER 31, 2015 Adjusted Unadjusted Dr. Cr Cr. Dr. 11,000 23,500 3,000 2,500 60,000 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Interest Payable Notes Payable Unearned Service Revenue Salaries and Wages Payable Share Capital-Ordinary Retained Earnings Service Revenue Salaries and Wages Expense Insurance Expense Interest Expense Depreciation Expense Supplies Expense Rent Expense 11,000 20,000 8,400 3,350 60,000 28,000 5,000 33,000 5,000 150 5,000 5,600 1,300 10,000 3,500 63,500 5,000 7,000 10,000 3,500 58,600 10,000 11,300 850 500 5,000 5,400 350 4,000 117,100 117,100127,050 127,050 Instructions (a) Journalize the annual adjusting entries that were made. (Omit explanations.) (b) Prepare an income statement and a retained ear nings statement for the year ending December 31, 2015, and an unclassified statement of financial position at December 31. Answer the following questions (1) If the note has been outstanding 3 months, what is the annual interest rate on (2) If the company paid 12,500 in salaries in 2015, what was the balance in Salaries (c) that note? and Wages Payable on December 31, 2014