Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sunland Design was founded by Thomas Grant in January 2011. Presented below is the adjusted trial balance as of December 31, 2020. SUNLAND DESIGN
Sunland Design was founded by Thomas Grant in January 2011. Presented below is the adjusted trial balance as of December 31, 2020. SUNLAND DESIGN ADJUSTED TRIAL BALANCE DECEMBER 31, 2020 Debit Credit Cash Accounts Receivable $11,760 22,260 Supplies Prepaid Insurance Equipment 5,760 3,260 60,760 Accumulated Depreciation-Equipment $35,760 Accounts Payable 5,760 Interest Payable 228 Notes Payable 7,600 Unearned Service Revenue 6,360 Salaries and Wages Payable 1,496 Common Stock 10,760 Accounts Payable Interest Payable 5,760 228 Notes Payable 7,600 Unearned Service Revenue 6,360 Salaries and Wages Payable 1,496 Common Stock 10,760 Retained Earnings 4,260 Service Revenue 62,260 Salaries and Wages Expense 12,060 Insurance Expense 1,046 Interest Expense 578 Depreciation Expense 9,600 Supplies Expenses 3,400 Rent Expense 4,000 SUNLAND DESIGN Income Statement A +A Prepare a statement of retained earnings for the year ending December 31, 2020. SUNLAND DESIGN Statement of Retained Earnings +A SUNLAND DESIGN Balance Sheet Assets Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity S Answer the following questions. (Round interest rate to O decimal places, e.g. 5%.) (1) If the note has been outstanding 6 months, what is the annual interest rate on that note? (Hint: Assume that the amount of interest payable in the trial balance relates to the note payable in the trial balance.) The annual interest rate % (2) If the company paid $17,500 in salaries and wages in 2020, what was the balance in Salaries and Wages Payable on December 31, 2019? The balance in Salaries and Wages Payable $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started