Vedula Advertising was founded by Murali Vedula in January 2015. The following are both the adjusted and unadjusted trial balances as of December 31, 2020.

Instructions

a. Journalize the annual adjusting entries that were made.

b. Prepare an income statement and a retained earnings statement for the year ended December 31, and a classified balance sheet at December 31.

c. Identify which accounts should be closed on December 31.

d. If the note has been outstanding 10 months, what is the annual interest rate on that note?

e. If the company paid $10,500 in salaries and wages in 2020, what was the balance in Salaries and Wages Payable on December 31, 2019?

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Vedula Advertising Trial Balance December 31, 2020 Unadjusted Adjusted Dr. Dr. Cr. Cr. $ 11,000 $ 11,000 Cash Accounts Receivable 16,000 19,500 Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Interest Payable Unearned Service Revenue 9,400 6,500 3,350 1,790 60,000 60,000 $ 25,000 $ 30,000 8,000 8,000 2,000 2,000 560 3,100 5,000 Salaries and Wages Payable 820 Common Stock 20,000 20,000 Retained Earnings 5,500 5,500 Dividends 10,000 10,000 Service Revenue 57,600 63,000 Salaries and Wages Expense Insurance Expense Interest Expense Depreciation Expense Supplies Expense Rent Expense 9,000 9,820 1,560 560 5,000 2,900 4,350 4,350 $123,100 $123,100 $132,980 $132,980