Yancy Advertising Agency Limited was founded by Tang Mia in January 2010. Presented below are both the adjusted and unadjusted trial balances as at December 31, 2014:

Instructions
(a) J oumalize the annual adjusting entries that were made.
(b) Prepare an income statement and a statement of retained earnings for the year ending December 31, and a balance sheet at December 31.

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YANCY ADVERTISING AGENCY LIMITE Trial Balance December 31, 2014 Unadjusted Adjusted Cash Accounts receivable Supplies $ 10,750 35,000 5,000 10,750 30,000 Unadjusted Dr 11,600 60,000 Adjusted Dr 2.200 Prepaid insurance Equipment Accumulated depreciation-equipment Accounts payable Interest payable Notes payable Unearned revenue Salaries and wages payable Common shares Retained earnings Sales revenue Salaries and wages expense Insurance expense Interest expense Depreciation expense Supplies expense Rent expense 60,000 28,000 5,000 S 39,500 11,000 650 5,000 20,600 9,600 10,000 3,500 70,000 5,000 17,800 10,000 3,500 67,800 19,600 9,400 1,000 11,500 11,400 4,000 10,000 350 $137,100 $137.100 $169,850 $169,850