(Adjusting Entries and Financial Statements) Yount Advertising Agency was founded by Thomas Grant in January 2001. Presented...
Question:
(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?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield