E2.15 (LO 5) (Missing Amounts) Presented below is financial information for two different companies.

E2.12 (LO 4) (Prepare Financial Statements) Flynn Design was founded by Katrina Flynn in January 2020. Presented below is the adjusted trial balance as of December 31, 2025.
Flynn Design Adjusted Trial Balance December 31, 2025 Dr. Cr.
Cash € 10,000 Accounts Receivable 21,500 Supplies 5,000 Prepaid Insurance 2,500 Equipment 60,000 Accumulated Depreciation—Equipment € 35,000 Accounts Payable 8,000 Interest Payable 150 Notes Payable 5,000 Unearned Service Revenue 5,600 Salaries and Wages Payable 1,300 Share Capital—Ordinary 10,000 Retained Earnings 3,500 Service Revenue 58,500 Salaries and Wages Expense 12,300 Insurance Expense 850 Interest Expense 500 Depreciation Expense 7,000 Supplies Expense 3,400 Rent Expense 4,000 €127,050 €127,050 Instructions

a. Prepare an income statement and a retained earnings statement for the year ending December 31, 2025, and an unclassified statement of financial position at December 31.

b. Answer the following questions.
1. If the note has been outstanding 6 months, what is the annual interest rate on that note?
2. If the company paid €17,500 in salaries and wages in 2025, what was the balance in Salaries and Wages Payable on December 31, 2024?
E2.13 (LO 4, 5) (Closing Entries) The adjusted trial balance of Faulk Ltd. shows the following data pertaining to sales at the end of its fiscal year, October 31, 2025: Sales Revenue £800,000; Delivery Expense £12,000; Sales Returns and Allowances £24,000; and Sales Discounts £12,000.
Instructions

a. Prepare the revenues section of the income statement.

b. Prepare separate closing entries for (1) sales revenue and (2) the contra accounts to sales revenue.
E2.14 (LO 4, 5) (Closing Entries) Presented below is information related to Russell AG for the month of January 2025.
Cost of goods sold €202,000 Salaries and wages expense € 61,000 Delivery expense 7,000 Sales discounts 8,000 Insurance expense 12,000 Sales returns and allowances 13,000 Rent expense 20,000 Sales revenue 340,000 Instructions Prepare the necessary closing entries.
E2.15 (LO 5) (Missing Amounts) Presented below is financial information for two different companies.