Lou’s Advertising Agency Pty Ltd was founded by Louise Lou in 2001. Presented here are both the adjusted and unadjusted trial balances as of 31 December 2017. 

Required

(a) Journalise the annual adjusting entries that were made.

(b) Prepare a statement of profit or loss and a calculation of retained earnings for the year ended 31 December 2017 and prepare a statement of financial position as at 31 December 2017. 

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

(d) If the bank loan was taken out 10 months ago, what is the annual interest rate on the loan?

(e) If the entity paid $31 200 in salaries in 2017, what was the balance in Salaries Payable on 31 December 2016?

(f) What is the effect on profit as a result of these adjusting entries?

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No. 100 110 130 140 150 151 200 220 230 240 250 300 310 311 400 500 505 510 520 530 540 LOU'S ADVERTISING AGENCY PTY LTD Trial balances as at 31 December 2017 Unadjusted Account name Cash Accounts Receivable Art Supplies Prepaid Insurance Printing Equipment Accumulated Depreciation Accounts Payable Interest Payable Advertising Revenue Received in Advance Salaries Payable Bank Loan (long term) Share Capital Retained Earnings Dividends Advertising Revenue Salaries Expense Insurance Expense Interest Expense Depreciation Expense Art Supplies Expense Rent Expense Dr $ 30800 56000 23 520 9380 168 000 33 600 28 000 980 11 200 $361 480 Cr $ 78 400 14 000 19 600 14 000 56 000 15 400 164 080 $361 480 Adjusted Dr $ 30 800 60 200 14 000 7000 168 000 33 600 31640 2380 1400 19 600 9520 11 200 $389 340 Cr $ 98.000 14 000 420 15680 3640 14 000 56 000 15400 172 200 $389 340