SECURED. Adolo. Acrobat \"esde DC ermedate a.. 164 1163 of 1615 (0b) Propare a s
ID: 2600133 • Letter: S
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SECURED. Adolo. Acrobat "esde DC ermedate a.. 164 1163 of 1615 (0b) Propare a statement of retsined earnings (c) Prepare a classified balance sheet. E3-12 (Prepare Financial Statements) Santo Design A 2008. Pnesented below is the adjusted trial balance as of December 31, 2014 gency was founded by Thomas Grant in January SANTO DESIGN AGENCY ADJUSTED TRIAL BALANCE Gr. 11,000 21,500 5,000 2,500 80,000 Acoounts Receivable Prepaid Insuranoa $ 35,000 5,000 150 5,000 5.600 Accounes Payabl Imerest Paryable Nows Paynble Unairned Service Rove Salaries and Wages Payable Common Stock Ratined Tamings Service Revenue Salsnes and Wages Expase nsurance Expense interest Expense Ovprecistion Expense Suppies Expense Rent Expense 10,000 3,500 61,500 11 300 850 7,000 ,400 4.000 127,00 $127,050Explanation / Answer
(a)
(b)(1) Annual interest rate: 20%
Interest expense for 6 months = $500
Annual interest expense = $500 x 2 = $1000
Annual interest rate = $1000/$5000 = 20%
(b)(2) Salaries and wages payable, December 31, 2013: $7500
SANTO DESIGN AGENCY Income Statement For the Year Ended December 31, 2014 Service revenue 61500 Less Operating expenses: Salaries and wages expense 11300 Insurance expense 850 Depreciation expenses 7000 Supplies expense 3400 Rent expense 4000 Total operating expenses 26550 Operating income 34950 Interest expense 500 Net income $ 34450Related Questions
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