INEED ANSWER AS SOON AS POSSIBLE

Total assets 203,275 Prepare adjusting entries and financial statements, (LO 5, 6, 7) August 31 and a statement of financial position as of August 31. P3-3A Costello Advertising Agency Inc. was founded by Pat Costello in January of 2013. Presented below are both the adjusted and unadjusted trial balances as of December 31, 2014. Costello Advertising Agency, Inc. Trial Balance December 31, 2014 Unadjusted Adjusted Dr. Cr. Dr. Cr. Cash $ 11,000 $ 11,000 Accounts Receivable 20,000 23,500 Supplies 8,600 5,000 Prepaid Insurance 3,350 2,500 Equipment 60,000 60,000 Accumulated Depreciation Equipment $ 28,000 $ 33,000 Accounts Payable 5,000 5,000 Interest Payable -0- 150 Notes Payable 5,000 5,000 Unearned Service Revenue 7,200 5,600 Salaries and Wages Payable 1,300 Share Capital-Ordinary 20,000 20,000 Retained Earnings 5,500 5,500 Dividends 12,000 12,000 Service Revenue 58,600 63,700 Salaries and Wages Expense 10,000 11,300 Insurance Expense 850 Interest Expense 350 500 Depreciation Expense 5,000 Supplies Expense 3,600 Rent Expense 4,000 4,000 $129,300 $129,300 $139,250 $139,250 Instructions (a) Journalize the annual adjusting entries that were made. (b) Prepare an income statement and a retained earnings sttement for the year ending December 31, 2014, and a statement of financial position at December 31. (c) Answer the following questions. (1) If the note has been outstanding 6 months, what is the annual interest rate on that note? (2) If the company paid $14,500 in salaries in 2014, what was the balance in Salaries and Wages Payable on December 31, 2013? (b) Net income $38,450 Ending retained earnings $31,950 Total assets $69,000 (c) (1) 6% (2) $4,500