Everett Co. was organized on July 1, 2014. Quarterly financial statements are prepared. 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 an owner’s equity statement for the 3 months ending September 30 and a balance sheet at September 30.
(c) If the note bears interest at 12%, how many months has it beenoutstanding?

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EVERETT CO Trial Balance September 30, 2014 Unadjusted Adjusted Cr, Cash Accounts Receivable Supplies Prepaid Rent Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Salaries and Wages Payable Interest Payable Unearned Rent Revenue Owner's Capital Owner's Drawings Service Revenue Rent Revenue Salaries and Wages Expense Rent Expense Depreciation Expense Supplies Expense Utilities Expense Interest Expense S 8,700 1,500 18,000 8,700 11,500 650 1,200 18,000 $ 700 10,000 2,500 725 100 1,050 22,000 10,000 2,500 1,900 22,000 1,600 1,600 16,000 1,410 17,100 2,260 8,000 1,900 8,725 2,900 700 850 1,510 100 1,510 $53,810 $53,810 $56,435 $56,435