Sage Advertising was founded in January 2013. Presented below are adjusted and unadjusted trial balances as of December 31, 2017. SAGE ADVERTISING TRIAL BALANCE DECEMBER 31, 2017 Unadjusted Adjusted Dr. Cr. Dr. Cr. Cash $16,800 $16,800 Accounts Receivable 30,900 34,126 Supplies 9,740 4,209 Prepaid Insurance 4,260 3,467 Equipment 67,810 67,810 Accumulated Depreciation-Equipment $27,640 $32,150 Accounts Payable 30,159 30,159 Interest Payable 0 141 Notes Payable 4,700 4,700 Unearned Service Revenue 6,450 5,046 Salaries and Wages Payable 0 1,357 Common Stock 9,030 9,030 Retained Earnings 3,160 3,160 Service Revenue 64,391 69,021 Salaries and Wages Expense 11,520 12,877 Insurance Expense 793 Interest Expense 480 621 Depreciation Expense 4,510 Supplies Expense 5,531 Rent Expense 4,020 4,020 $145,530 $145,530 $154,764 $154,764 Journalize the annual adjusting entries that were made. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit 1. Dec. 31 (To record accrued service revenue) 2. Dec. 31 (To record earned service revenue) 3. Dec. 31 (To record supplies used) 4. Dec. 31 (To record depreciation on equiment) 5. Dec. 31 (To record interest accrued on the note) 6. Dec. 31 (To record expired insurance) 7. Dec. 31 (To record accrued wages) SHOW LIST OF ACCOUNTS Prepare an income statement for the year ending December 31, 2017. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) SAGE ADVERTISING Income Statement $ $ $ SHOW LIST OF ACCOUNTS Prepare a statement of retained earnings for the year ending December 31, 2017. (List items that increase retained earnings first.) SAGE ADVERTISING Statement of Retained Earnings $ : $ SHOW LIST OF ACCOUNTS Prepare an unclassified balance sheet at December 31. (List assets in order of liquidity.) SAGE ADVERTISING Balance Sheet Assets $ $ : $ Liabilities and Stockholders' Equity $ $ $ SHOW LIST OF ACCOUNTS Answer the following questions. (Round interest rate to 0 decimal places, e.g. 7%.) (1) If the note has been outstanding 3 months, what is the annual interest rate on that note? The annual interest rate % (2) If the company paid $12,190 in salaries and wages in 2017, what was the balance in Salaries and Wages Payable on December 31, 2016? The balance in Salaries and Wages Payable $