The unadjusted and adjusted trial balances for Grant Advertising Agency Limited at its year end, December 31, 2012, follow. The company adjusts its accounts annually.

Additional information:
During the year, the company issued common shares for $3,000.
Instructions
(a) Prepare an income statement, statement of changes in equity, and statement of financial position for the year.
(b) Prepare the adjusting journal entries that were made for the yea

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GRANT ADVERTISING AGENCY LIMITED Trial Balance December 31, 2012 Unadjusted Adjusted Debit Debit Credit $ 11,000 Credit 11,000 10,850 19,750 1,265 Short-term investments Accounts receivable Supplies Prepaid insurance Equipment Equipment-accumulated depreciation Accounts payable Interest payable Salaries payable Unearned revenue Loan payable, due in 2016 Income tax payable Common shares Retained earnings Dividends 10,850 18,650 7,200 2,400 66,000 66,000 $39,600 4,800 700 1,625 6,200 10,000 7,000 20,000 10,400 26,400 4,200 7,100 10,000 20,000 10,400 2,000 $12,000 6,600 2,000 58,600 Advertising revenue Salaries expense Depreciation expense Rent expense Supplies expense Insurance expense Interest expense Income tax expense 60,600 $ 13,625 13,200 7,200 5,935 1,600 7,000 $136,700 $136,700 $160,925 $160,925