P3-3A Fernetti Advertising Agency, Inc. was founded by John Fernetti in January of 2007.Presented below are both the adjusted and unadjusted trial balances as of December 31, 2008.
Instructions
(a) Journalize the annual adjusting entries that were made.
(b) Prepare an income statement and a retained earnings statement for the year ending December 31, 2008, and a balance sheet at December 31.
(c) 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 $12,500
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