Attached is all the data: Prepare an income statement and a statement of retained earnings for the year ending December 31, 2010, and an unclassified balance sheet at December 31 for Flynn Design Agency. in addition, these two questions. If the note has been outstanding 6 months, what is the annual interest rate on that note? If the company paid $17,500 in salaries in 2010, what was the balance in Salaries Payable on December 31, 2009?

Flynn Design Agency was founded by Kevin Flynn in January 2006. Presented below is the adjusted trial balance as of December 31, 2010. FLYNN DESIGN AGENCY Adjusted Trial Balance December 31, 2010 Debit Credit Cash $10,000 Accounts Receivable 21,500 Art Supplies 5,000 Prepaid Insurance 2,500 Printing Equipment 60,000 Accumulated Depreciation $35,000 Accounts Payable 8,000 Interest Payable 150 Notes Payable 5,000 Unearned Advertising 5,600 Revenue Salaries Payable 1,300 Common Stock 10,000 Retained Earnings 3,500 Advertising Revenue 58,500 Salaries Expense 12,300 Insurance Expense 850 Interest Expense 500 Depreciation Expense 7,000 Art Supplies Expense 3,400 4,000 Rent Expense $127,050 $127,050 Prepare an income statement and a statement of retained earnings for the year ending December 31, 2010, and an unclassified balance sheet at December 31. (In the Income Statement list multiple items in order from largest to smallest amount, e.g. 15, 11,7. In the Balance Sheet, list Assets in order of liquidity and Liabilities with Notes payable first and the other items in order from largest to smallest amount, 15, 11, 7.) FLYNN DESIGN AGENCY Income Statement For the Year Ended December 31, 2010 Revenues $ Expenses $ Total expenses Net Income FLYNN DESIGN AGENCY Statement of Retained Earnings For the Year Ended December 31, 2010 $ $ Add: $ FLYNN DESIGN AGENCY Balance Sheet December 31, 2010 Assets $ Printing Equipment Less: Total assets $ $ Liabilities and Stockholders' Equity Liabilities $ Total liabilities Stockholders' equity Total liabilities and stockholders' equity $ If the note has been outstanding 6 months, what is the annual interest rate on that note? If the company paid $17,500 in salaries in 2010, what was the balance in Salaries Payable on December 31, 2009? Flynn Design Agency was founded by Kevin Flynn in January 2006. Presented below is the adjusted trial balance as of December 31, 2010. FLYNN DESIGN AGENCY Adjusted Trial Balance December 31, 2010 Debit Credit Cash $10,000 Accounts Receivable 21,500 Art Supplies 5,000 Prepaid Insurance 2,500 Printing Equipment 60,000 Accumulated Depreciation $35,000 Accounts Payable 8,000 Interest Payable 150 Notes Payable 5,000 Unearned Advertising 5,600 Revenue Salaries Payable 1,300 Common Stock 10,000 Retained Earnings 3,500 Advertising Revenue 58,500 Salaries Expense 12,300 Insurance Expense 850 Interest Expense 500 Depreciation Expense 7,000 Art Supplies Expense 3,400 4,000 Rent Expense $127,050 $127,050 Prepare an income statement and a statement of retained earnings for the year ending December 31, 2010, and an unclassified balance sheet at December 31. (In the Income Statement list multiple items in order from largest to smallest amount, e.g. 15, 11,7. In the Balance Sheet, list Assets in order of liquidity and Liabilities with Notes payable first and the other items in order from largest to smallest amount, 15, 11, 7.) If the note has been outstanding 6 months, what is the annual interest rate on that note? If the company paid $17,500 in salaries in 2010, what was the balance in Salaries Payable on December 31, 2009? Flynn Design Agency was founded by Kevin Flynn in January 2006. Presented below is the adjusted trial balance as of December 31, 2010. FLYNN DESIGN AGENCY Adjusted Trial Balance December 31, 2010 Debit Credit Cash $10,000 Accounts Receivable 21,500 Art Supplies 5,000 Prepaid Insurance 2,500 Printing Equipment 60,000 Accumulated Depreciation $35,000 Accounts Payable 8,000 Interest Payable 150 Notes Payable 5,000 Unearned Advertising 5,600 Revenue Salaries Payable 1,300 Common Stock 10,000 Retained Earnings 3,500 Advertising Revenue 58,500 Salaries Expense 12,300 Insurance Expense 850 Interest Expense 500 Depreciation Expense 7,000 Art Supplies Expense 3,400 4,000 Rent Expense $127,050 $127,050 Prepare an income statement and a statement of retained earnings for the year ending December 31, 2010, and an unclassified balance sheet at December 31. (In the Income Statement list multiple items in order from largest to smallest amount, e.g. 15, 11,7. In the Balance Sheet, list Assets in order of liquidity and Liabilities with Notes payable first and the other items in order from largest to smallest amount, 15, 11, 7.) If the note has been outstanding 6 months, what is the annual interest rate on that note? If the company paid $17,500 in salaries in 2010, what was the balance in Salaries Payable on December 31, 2009