Everett Co. was organized on July 1, 2015. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown below.

EVERETT CO. Trial Balance September 30, 2015
		Unadjusted				Adjusted
		Dr.		Cr.		Dr.		Cr.
Cash		$ 8,728				$ 8,728
Accounts Receivable		10,418				11,456
Supplies		1,455				680
Prepaid Rent		2,214				1,215
Equipment		18,300				18,300
Accumulated DepreciationEquipment				$ - 0 -				$ 694
Notes Payable				9,700				9,700
Accounts Payable				2,529				2,529
Salaries and Wages Payable				- 0 -				710
Interest Payable				- 0 -				97
Unearned Rent Revenue				1,913				1,027
Common Stock				22,160				22,160
Dividends		1,578				1,578
Service Revenue				16,231				17,269
Rent Revenue				1,423				2,309
Salaries and Wages Expense		7,820				8,530
Rent Expense		1,931				2,930
Depreciation Expense						694
Supplies Expense						775
Utilities Expense		1,512				1,512
Interest Expense						97
		$ 53,956		$ 53,956		$ 56,495		$ 56,495

Step 1: Prepare a statement of retained earnings for the 3 months ending September 30, 2015. (List items that increase retained earnings first.) Step 2: Prepare a balance sheet at September 30. (List assets in order of liquidity.)

Step 3: If the note bears interest at 12%, how many months has it been outstanding?