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Fernetti Advertising Agency was founded by John Fernetti in January of 2009. Presented on page 134 are both the adjusted and unadjusted trial balances as of December 31, 2010.
Instructions
(a) Journalize the annual adjusting entries that were made.
(b) Prepare an income statement and a statement of owner's equity for the year ending December 31, 2010, and a balance sheet at December 31.
(c) Answer the following questions.
(1) If the note has been outstanding 6 months, what is the annual interest rate on that note?
(2) If the company paid $12,500 in salaries in 2010, what was the balance in Salaries Payable on December 31,2009?
for each of the following situations identify the correct factor to use from table 1 or table 2 in the appendix on
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Which of the following would not be a component of cash flows from investing activities? a. Sale of land. b. Purchase of securities. c. Purchase of equipment. d. Dividends paid.
The preparation of the Cash Flow statement is challenging and time consuming and unlike the other major financial statements, this one is not prepared from the adjusted trial balance.
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