Minor Advertising Agency was founded by Brandon Minor in January of 2011. Presented below are both the adjusted and unadjusted trial balances as of December 31, 2012.
Instructions
(a) Journalize the annual adjusting entries that were made.
(b) Prepare an income statement and an owner's equity statement for the year ending December 31, 2012, 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 2012, what was the balance in Salaries and Wages Payable on December 31,2011?
