Vedula Advertising Agency was founded by Murali Vedula in January 2007. Presented here are both the adjusted and unadjusted trial balances as of December 31, 2012.

Instructions(a) Journalize the annual adjusting entries that were made.(b) Prepare an income statement and a retained earnings statement for the year ended December 31, and a classified balance sheet at December 31.(c) Identify which accounts should be closed on December 31.(d) If the note has been outstanding 10 months, what is the annual interest rate on that note?(e) If the company paid $10,500 in salaries in 2012, what was the balance in Salaries and Wages Payable on December 31,2011?

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VEDULA ADVERTISING AGENCY Trial Balance December 31, 2012 Unadjusted Adjusted Dr. Cr. Dr. Cr. $ 11,000 $ 11,000 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation- Equipment Notes Payable Accounts Payable Interest Payable 16,000 19,500 6,500 1,790 60,000 9,400 3,350 60,000 $ 25,000 $ 30,000 8,000 8,000 2,000 2,000 560 Unadjusted Adjusted Dr. Cr. Dr. Cr. Unearned Service Revenue 5,000 3,100 Salaries and Wages Payable Common Stock 820 20,000 20,000 5,500 Retained Earnings Dividends 5,500 10,000 10,000 63,000 Service Revenue 57,600 Salaries and Wages Expense Insurance Expense Interest Expense Depreciation Expense Supplies Expense Rent Expense 9,000 9,820 1,560 560 5,000 2,900 4,350 4,350 $123,100 $123,100 $132,980 $132,980