Bern Co., Inc. was organized on July 1, 2011. Quarterly financial statements are pie- pared. The unadjusted and adjusted trial balances as of September 30 are shown below.

Instructions
(a) Journalize the adjusting entries that were made.
(b) Prepare an income statement and a retained earnings statement for the 3 months ending September 30 and a statement of financial position at September 30.
(c) If the note bears interest at 12%, how many months has it beenoutstanding?

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BERN CO., INC. Trial Balance September 30, 2011 Unadjusted Adjusted r. Cash Accounts Receivable Supplies Prepaid Rent Equipment Accumulated Depreciation-Equipment Notes Pavable Accounts Payable Salaries Payable Interest Payable Unearned Rent Revenue Share Capital-Ordinary Dividends Commission Revenue Rent Revenue Salaries Expense Rent Expense Depreciation Expense Supplies Expense Utilities Expense Interest Expense CHF 8.700 10.400 1500 2.200 18.000 CHF 8.700 11.200 900 1.300 18.000 CHF 500 10.000 2.500 725 100 1.050 22.000 CHF10.000 2.500 1,900 22.000 1.600 .600 16.000 1410 16.800 2.260 8,000 1.900 8.725 2.800 500 600 1.510 100 1510 CHF53.810 CHF53.810 CHF55,935 CHF55.935