(Adjusting Entries and Financial Statements) Mason Advertising Agency was founded in January 2010. Presented below are adjusted and unadjusted trial balances as of December 31, 2014.

Instructions

(a) Journalize the annual adjusting entries that were made. (Omit explanations.)

(b) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2014, and an unclassified balance sheet 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 and wages in 2014, what was the balance in Salaries and Wages Payable on December 31, 2013?

{give all part complete answer on paper}

Adjusted Cr. $ 11,000 23.500 3.000 2,500 60.000 MASON ADVERTISING AGENCY TRIAL BALANCE DECEMBER 31, 2014 Unadjusted Dr. Cr. Cash $ 11,000 Accounts Receivable 20,000 Supplies 8,400 Prepaid Insurance 3,350 Equipment 60.000 Accumulated Depreciation-Equipment $ 28,000 Accounts Payable 5,000 Interest Payable Notes Payable 5,000 Unearned Service Revenue 7,000 Salaries and Wages Payable Comunion Stock 10,000 Retained Earnings 3.500 Service Revenue 58,600 Salaries and Wages Expertise 10,000 Insurance Expense Interest Expense 350 Depreciation Expense Supplies Expense Rent Expense 4.000 $117.100 $117.100 $ 33,000 5,000 150 5.000 5,600 1,300 10,000 3,500 63,500 11.300 850 500 5,000 5.400 4,000 $127,050 $127.050