Lausanne Co., Inc. 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 a retained earnings statement for the 3 months ending September 30 and a statement of fi nancial position at September 30.
(c) If the note bears interest at 12%, how many months has it been outstanding?

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Lausanne Co., Inc. Trial Balance September 30, 2014 Unadjusted Adjusted Dr. Cr. Dr. Cr. Cash CHF 8,700 CHF 8,700 Accounts Receivable 10,400 1,900 2,200 20,000 11,500 650 Supplies Prepaid Rent Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Salaries and Wages Payable Interest Payable 1,200 20,000 CHF CHF 1,125 -0- 10,000 3,200 10,000 3,200 725 -0- -0- 100 Unearned Rent Revenue 1,900 22,000 1,050 22,000 Share Capital-Ordinary Dividends 1,000 1,000 17,900 Service Revenue 16,800 1,710 Rent Revenue 2,560 Salaries and Wages Expense Rent Expense Depreciation Expense Supplies Expense Utilities Expense Interest Expense 8,725 8,000 1,900 2,900 1,125 1,250 1,510 1,510 100 CHF55,610 CHF55,610 CHF58,660 CHF58,660