Gbelow are both the adjusted and unadjusted trial balances as of December 31, 2017. Uustello Advertising SpA was founded by Pat Costello in January 2016. Presente hancial position as of August 31. ment or the 3 months end- earnings 12.415 Total assets 203,275 Prepare adjusting entries and financial statements (LO 5, 6, 7) gbo COSTELLO ADVERTISING SpA Trial Balance December 31, 2017 Unadjusted Cash Dr. Accounts Receivable 11,000 Supplies - 18.000 Prepaid Insurance 8,600 Equipment 3,350 Accumulated Depreciation Equipment 60,000 Accounts Payable 26.000 Interest Payable 5.000 Notes Payable Unearned Service Revenue 5.000 Salaries and Wages Payable 7.200 - Share Capital-Ordinary Retained Earnings 20,000 Dividends 5,500 Service Revenue 12.000 Salaries and Wages Expense 58,600 Insurance Expense 10,000 Interest Expense Depreciation Expense Supplies Expense Rent Expense 127,300 127,300 Adjusted Dr. 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 11,300 850 350 500 7.000 3,600 4,000 141,250 4.000 141,250 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 38,4 December 31, 2017, and a statement of financial position at December 31. Ending retained (c) Answer the following questions. earnings 31,950 (1) If the note has been outstanding 6 months, what is the annual interest rate on that note? Total assets 69, (2) If the company paid 14,500 in salaries in 2017, what was the balance in Salaries (0) (1) 6% and Wages Payable on December 31, 2016? (2) 4,500 - Dellingham Company Ltd. at December 31, 2017. pro- Preparing adjust