Journalize the annual adjusting entries that were made

Assignment Help Financial Accounting

Reference no: EM131198239

(Adjusting Entries and Financial Statements) Mason Advertising Agency was founded in January 2008. Presented below are adjusted and unadjusted trial balances as of December 31, 2012.

MASON ADVERTISING AGENCY TRIAL BALANCE DECEMBER 31, 2012
	Unadjusted		Adjusted
	Dr.	Cr.	Dr.	Cr.
Cash	$11,000		$11,000
Accounts Receivable	20,000		23,500
Supplies	8,400		3,000
Prepaid Insurance	3,350		2,500
Equipment	60,000		60,000
Accumulated Depreciation-Equipment		$28,000		$33,000
Accounts Payable		5,000		5,000
Interest Payable		-0-		150
Notes Payable		5,000		5,000
Unearned Service Revenue		7,000		5,600
Salaries and Wages Payable		-0-		1,300
Common Stock		10,000		10,000
Retained Earnings		3,500		3,500
Service Revenue		58,600		63,500
Salaries and Wages Expense	10,000		11,300
Insurance Expense			850
Interest Expense	350		500
Depreciation Expense			5,000
Supplies Expense			5,400
Rent Expense	4,000		4,000
	$117,100	$117,100	$127,050	$127,050

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, 2012, 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 $12,500 in salaries and wages in 2012, what was the balance in Salaries and Wages Payable on December 31, 2011?

Reference no: EM131198239

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