The Ozaki Co. was organized on July 1, 1996. Quarterly financial statements are prepared. The trial balance and adjusted trial balance on September 30 are shown below.

\section*{Instructions}

(a) Journalize the adjusting entries that were made.

(b) Prepare an income statement and a retained earnings statement for the 3 months ending September 30 and a balance sheet at September 30.

(c) If the note bears interest at \(12 \%\), how many months has it been outstanding?

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Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Trial Balance Adjusted Trial Balance Dr. Cr. Dr. Cr. $ 6,700 $6,700 400 800 1,500 900 1,200 1,000 15,000 15,000 350 $ 5,000 1,510 - 5,000 1,510 Salaries Payable S Interest Payable Unearned Rent Revenue Common Stock Retained Earnings Dividends 600 -50 900 600 14,000 14,000 -0- -0- 600 600 Commission Revenue 14,000 14,400