Yount Advertising Agency was founded in January 2004. Presented below are adjusted and unadjusted trial balances as

Question:

Yount Advertising Agency was founded in January 2004. Presented below are adjusted and unadjusted trial balances as of December 31, 2008.

Instructions
(a) Journalize the annual adjusting entries that were made. (Omit explanations.)
(b) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2008, and an unclassified balance sheet at December 31.
(c) Answer the following questions.
(1) If the note has been outstanding 3 months, what is the annual interest rate on that note?
(2) If the company paid $13,500 in salaries in 2008, what was the balance in Salaries Payable on December 31,2007?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...