Question

In: Accounting

Swifty Design was founded by Thomas Grant in January 2011. Presented below is the adjusted trial...

Swifty Design was founded by Thomas Grant in January 2011. Presented below is the adjusted trial balance as of December 31, 2020.

SWIFTY DESIGN
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2020

Debit

Credit

Cash

$11,210

Accounts Receivable

21,710

Supplies

5,210

Prepaid Insurance

2,710

Equipment

60,210

Accumulated Depreciation-Equipment

$35,210

Accounts Payable

5,210

Interest Payable

168

Notes Payable

5,600

Unearned Service Revenue

5,810

Salaries and Wages Payable

1,416

Common Stock

10,210

Retained Earnings

3,710

Service Revenue

61,710

Salaries and Wages Expense

11,510

Insurance Expense

966

Interest Expense

518

Depreciation Expense

7,600

Supplies Expenses

3,400

Rent Expense

4,000

$129,044

$129,044

(a1)

Prepare an income statement for the year ending December 31, 2020, Statement of Retained Earnings, Balance Sheet and

/Answer the following questions. (Round interest rate to 0 decimal places, e.g. 7%.)

(1) If the note has been outstanding 6 months, what is the annual interest rate on that note? (Hint: Assume interest payable is the outstanding for 6 months.)

The annual interest rate

$

%


(2) If the company paid $17,500 in salaries and wages in 2014, what was the balance in Salaries and Wages Payable on December 31, 2013?

The balance in Salaries and Wages Payable

Solutions

Expert Solution

Please comment for any explanation,

Thanks,


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