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(Adjusting Entries and Financial Statements) Yount Advertising Agency was founded by Thomas Grant in January 2001. Presented below are both the adjusted and unadjusted trial balances as of December 31, 2005.
(a) Journalize the annual adjusting entries that were made.
(b) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2005, and a 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 2005, what was the balance in Salaries Payable on December 31,2004?
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