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Mason Advertising Agency Inc. was founded in January 2017. Presented below are adjusted and unadjusted trial balances as at December 31, 2020.
Mason Advertising Agency Inc. Trial Balance December 31, 2020 Unadjusted Adjusted Dr. S 11,000 20,000 Cr. Dr. Cr. $ 11,0
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, 2020, and an unclassified statement of financial position at December 31.
c. Answer the following questions.
1. If the note has been outstanding three months, what is the annual interest rate on that note?
2. If the company paid $12,500 in salaries and wages in 2020, what was the balance in Salaries and Wages Payable on December 31, 2019?
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