P3-2 (L03,4) EXCEL (Adjusting Entries and Financial Statements) Mason Advertising was founded in January 2013, Presented below are adjusted and unadjusted trial balances as of December 31, 2017 MASON ADVERTISING TRIAL BALANCE DECEMBER 31, 2017 Unadjusted Dr Cr. $ 11,000 20,000 8.400 3,350 60,000 $ 28,000 5,000 -0- 5,000 7,000 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation--Equipment Accounts Payable terest Payable Notes Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Insurance Expense Interest Expense Depreciation Expense Supplies Expense Rent Expense Adjusted Dr. Cr. $ 11,000 23,500 3,000 2,500 60,000 $ 33,000 5,000 150 5,000 5,600 1,300 10,000 3,500 63,500 11,300 850 500 5,000 5,400 4,000 $127,050 $127,050 10,000 3,500 58,600 10,000 350 4,000 $117,100 $117,100 Instructions (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, 2017, and an unclassified balance sheet at December 31. Problems 139 (c) Answer the following questions. (1) If the note has been outstanding 3 months, what is the annual interest rate on that note? (2) If the company paid $12,500 in salaries and wages in 2017, what was the balance in Salaries and Wages Payable on December 31, 2016? I A4 Tutu 11 CD