+ E A Read aloud | V Draw V Highlight PALM TRAVEL AGENCY TRIAL BALANCE DECEMBER 31, 2017 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Notes Payable Accounts Payable Interest Payable Salaries and Wages Payable Unearned Service Revenue Common Stock Retained Earings Service Revenue Salaries and Wages Expense Insurance Expense Interest Expenses Depreciation Expense Supplies Expense Rent Expense Unadjusted Debit Credit $16,500 6,500 3.600 2,000 30,000 $12,000 10,000 2,600 0 0 1,100 1,000 13,800 46,100 26.000 0 0 0 0 2,000 586,600 586,000 Adjusted Debit Credit $16,500 7,250 800 800 30,000 $15,000 10,000 2,600 600 1,850 250 1,000 13.800 47,700 27,850 1,200 600 3,000 2,800 2,000 $92,800 $92.800 Kit IA 16e_PB.indd Page 2 9/13/16 10:44 AM user 1206/WBOSOBO 2 Chapter 3 The Accounting Information System Instructions (a) Journalize the annual adjusting entries that were made. (Omit explanations.) (b) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2017, and an unclas sified balance sheet at December 31. le) 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 $27,200 in salaries and wages in 2017, what was the balance in Salaries and Wages Payable on December 31, 2016