Exercise 3-12 Tamarisk Design was founded by Thomas Grant in January 2011. Presented below is the adjusted trial balance as of December 31, 2020. Credit $35,925 5,925 246 TAMARISK DESIGN ADJUSTED TRIAL BALANCE DECEMBER 31, 2020 Debit Cash $11,925 Accounts Receivable 22,425 Supplies 5,925 Prepaid Insurance 3,425 Equipment 60,925 Accumulated Depreciation Equipment Accounts Payable Interest Payable Notes Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense 12,225 Insurance Expense 1,070 Interest Expense 596 Depreciation Expense 10,200 Supplies Expenses 3,400 Rent Expense 4,000 $136,116 8,200 6,525 1,520 10,925 4,425 62,425 $136,116 Prepare an income statement for the year ending December 31, 2020. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) TAMARISK DESIGN Income Statement SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO VIDEO Prepare a statement of retained earnings for the year ending December 31, 2020. TAMARISK DESIGN Statement of Retained Earnings $L SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO VIDEO Prepare an unclassified balance sheet at December 31. (List assets in order of liquidity.) TAMARISK DESIGN Balance Sheet Assets $ Liabilities and Stockholders' Equity $ SHOW LIST OF ACCOUNTS Answer the following questions. (Round interest rate to 0 decimal places, e.g. 5%.) (1) If the note has been outstanding 6 months, what is the annual interest rate on that note? (Hint: Assume that the amount of interest payable in the trial balance relates to the note payable in the trial balance.) The annual interest rate 1% (2) If the company paid $17,500 in salaries and wages in 2020, what was the balance in Salaries and Wages Payable on December 31, 2019? The balance in Salaries and Wages Payable SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO VIDEO