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Problem 3-02 Concord Advertising was founded in January 2013. Presented below are adjusted and unadjusted trial balances as of December 31, 2020. CONCORD ADVERTISING TRIAL BALANCE DECEMBER 31, 2020 Unadjusted Dr. Cr. Cash $12,000 Accounts Receivable 25,800 Supplies 9,520 Prepaid Insurance 4,690 Equipment 64,130 Accumulated Depreciation Equipment $26,050 Accounts Payable 24,692 Interest Payable Notes Payable 4,800 Unearned Service Revenue 7,460 Salaries and Wages Payable -0- Common Stock 9,730 Retained Earnings 3,670 Service Revenue 56,768 Salaries and Wages Expense 11,880 Insurance Expense Interest Expense 420 Depreciation Expense Supplies Expense -0- Adjusted Dr. Cr. $12,000 29,623 4,130 3,881 64,130 $30,550 24,692 144 4,800 6,066 1,317 9,730 3,670 61,985 13,197 809 564 4,500 5,390 Rent Expense 4.730 $133.170 4,730 $142,954 $133,170 $142,954 Journalize the annual adjusting entries that were made. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) No. Date Account Titles and Explanation Debit Credit 1. Dec. 31 (To record accrued service revenue) 2. Dec. 31 (To record earned service revenue) 3. Dec. 31 (To record supplies used) 4. Dec. 31 (To record depreciation on equiment) 5. Dec. 31 (To record interest accrued on the note) 6. Dec. 31 (To record expired insurance) 7. Dec. 31 (To record accrued wages) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare an income statement for the year ending December 31, 2020. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) CONCORD ADVERTISING Income Statement $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare a statement of retained earnings for the year ending December 31, 2020. (List items that increase retained earnings first.) CONCORD ADVERTISING Statement of Retained Earnings $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare an unclassified balance sheet at December 31. (List assets in order of liquidity.) CONCORD ADVERTISING Balance Sheet Assets $ Liabilities and Stockholders' Equity $ $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Answer the following questions. (Round interest rate to o decimal places, e.g. 7%.) (1) If the note has been outstanding 3 months, what is the annual interest rate on that note? The annual interest rate 1% (2) If the company paid $12,500 in salaries and wages in 2020, what was the balance in Salaries and Wages Payable on December 31, 2019? The balance in Salaries and Wages Payable SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT

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