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(LO 3,4) (Adjusting Entries and Financial Statements) Palm Travel Agency was founded in January 2016. Presented re adjusted and unadjusted trial balances as of December
(LO 3,4) (Adjusting Entries and Financial Statements) Palm Travel Agency was founded in January 2016. Presented re adjusted and unadjusted trial balances as of December 31, 2020, PALM TRAVEL AGENCY TRIAL BALANCE DECEMBER 31, 2020 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Notes Payable Accounts Payable Interest Payable Salaries and Wages Payable Unearned Service Revenue Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Insurance Expense Interest Expenses Depreciation Expense Supplies Expense Rent Expense Unadjusted Debit Credit $16,500 6,500 3,600 2,000 30,000 $12,000 10,000 2,600 0 10 1,100 1.000 13,800 46,100 26,000 D 0 0 0 2000 $86,600 $86,600 Adjusted Debit Credit $16,500 7,250 800 800 30,000 $15,000 10,000 2,600 600 1850 250 1,000 13 800 47,700 27,850 1,200 600 3,000 2.800 2,000 $92,800 $92 800 structions (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, 2020, and an unclas- sified balance sheet 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 $27,200 in salaries and wages in 2020, what was the balance in Salaries and Wages Payable on December 31, 2019
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