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(Adjusting Entries and Financial Statements) Mason Advertising Agency was founded in January 2010.
Presented below are adjusted and unadjusted trial balances as of December 31, 2014.
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, 2014, 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 2014, what was the balance in Salaries and Wages Payable on December 31, 2013?
Financial Statement Analysis and Preparation
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