P3.8 (LO 3,4) (Adjusting Entries and Financial Statements) Vedula Advertising was founded by Murali Vedula in January 2015. The following are both the adjusted and unadjusted trial balances as of December 31, 2020. Adjusted Dr. Cr. $ 11,000 19,500 6,500 1,790 60,000 Vedula Advertising Trial Balance December 31, 2020 Unadjusted Dr. Cr. Cash $ 11,000 Accounts Receivable 16,000 Supplies 9,400 Prepaid Insurance 3,350 Equipment 60,000 Accumulated DepreciationEquipment $ 25,000 Notes Payable 8,000 Accounts Payable 2,000 Interest Payable Unearned Service Revenue 5,000 Salaries and Wages Payable Common Stock 20,000 Retained Earnings 5,500 Dividends 10,000 Service Revenue 57,600 Salaries and Wages Expense 9,000 Insurance Expense $ 30,000 8,000 2,000 560 3,100 820 20,000 5,500 0 10,000 63,000 9,820 1,560 2,000 2,000 560 5,000 3,100 820 20,000 5,500 20,000 5,500 10,000 10,000 Accounts Payable Interest Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense Insurance Expense Interest Expense Depreciation Expense Supplies Expense Rent Expense 57,600 63,000 9,000 9,820 1,560 560 5,000 2,900 4,350 4,350 $123,100 $123,100 $132,980 $132,980 Instructions a. Journalize the annual adjusting entries that were made. b. Prepare an income statement and a retained earnings statement for the year ended December 31, and a classified balance sheet at December 31. c. Identify which accounts should be closed on December 31. d. If the note has been outstanding 10 months, what is the annual interest rate on that note? e. If the company paid $10,500 in salaries and wages in 2020, what was the balance in Salaries and Wages Payable on December 31, 2019