Problem 3-02 Tamarisk Advertising was founded in January 2013. Presented below are adjusted and unadjusted trial balances as of December 31, 2020. TAMARISK ADVERTISING TRIAL BALANCE DECEMBER 31, 2020 Unadjusted Cr. Adjusted Cr. Dr. Dr. Cash $17,960 $17,960 33,784 Accounts Receivable 30,200 Supplies 8,640 3,366 3,436 65,890 Prepaid Insurance 4,300 65,890 Equipment Accumulated Depreciation-Equipment $27,250 34,524 $32,390 Accounts Payable 34,524 Interest Payable -0- 141 Notes Payable 4,700 4,700 Unearned Service Revenue 6,550 5,151 Salaries and Wages Payable -0- 1,197 Common Stock 10,670 10,670 Retained Earnings 3,770 3,770 Service Revenue 55,976 60,959 Salaries and Wages Expense 11,600 12,797 Insurance Expense 864 Interest Expense 490 631 Depreciation Expense 5,140 Supplies Expense 5,274 Rent Expense 4,360 4,360 $143,440 $143,440 $153,502 $153,502 Z Your answer is partially correct. Try again. 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.) Account Titles and Explanation Credit No. Date Debit Dec. 31TAccounts Receivable 1. 3584 Service Revenue 3584 (To record accrued service revenue) Dec. 31 2. Accounts Receivable TService Revenue (To record earned service revenue) Dec. 31 3. Supplies Expense 5274 Supplies 5274 (To record supplies used) Dec. 31TDepreciation Expense 4. 5140 Accumulated Depreciation- 5140 (To record depreciation on equiment) Dec. 31TInterest Expense 5. 141 Interest Payable 141 (To record interest accrued on the note) Dec. 31TInsurance Expense 6. 864 Dec. 31TAccounts Receivable 1. 3584 Service Revenue 3584 (To record accrued service revenue) 2. Dec. 31 Accounts Receivable Service Revenue (To record earned service revenue) Dec. 31TSupplies Expense 3. 5274 5274 Supplies (To record supplies used) 4. Dec. 31 TDepreciation Expense 5140 Accumulated Depreciation- 5140 (To record depreciation on equiment) Dec. 31 5. Interest Expense 141 Interest Payable 141 (To record interest accrued on the note) Dec. 31 TInsurance Expense 6. 864 864 Prepaid Insurance (To record expired insurance) 7. Dec. 31TSalaries and Wages Expen 1197 Salaries and Wages Pay 1197 (To record accrued wages) Prepare a statement of retained earnings for the year ending December 31, 2020. (List items that increase retained earnings first.) TAMARISK ADVERTISING Statement of Retained Earnings For the Year Ended December 31, 2020 Retained Earnings, January 1 3770 Add + Net Income / (Loss) 31893 35663 Retained Earnings, December 31 + x Your answer is incorrect. Try again. Prepare an unclassified balance sheet at December 31. (List assets in order of liquidity.) TAMARISK ADVERTISING Balance Sheet Assets Cash Accounts Receivable Prepaid Insurance Supplies Equipment +ETAccumulated Depreciation- Less X Your answer is incorrect. Try again. 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 $12,280 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 $4 Open Show Work Click if you would like to Show Work for this
