Everett Co. was organized on July 1, 2014. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown below. EVERETT CO. Trial Balance September 30, 2014

Cash

Accounts Receivable Supplies

Prepaid Rent

Equipment

Unadjusted

Adjusted

$ 8,700 10,400 1,500 2,200 18,000

$ 8,700
11,500
650
1,200
18,000

Accumulated Depreciation-Equipment

$ -0-

$ 700

Notes Payable

10,000

10,000

Accounts Payable

2,500

2,500

Salaries and Wages Payable

-0-

725

Interest Payable

-0-

100

Unearned Rent Revenue

1,900

1,050

Owner's Capital

22,000

22,000

Owner's Drawings

1,600

1,600

Service Revenue

16,000

17,100

Rent Revenue

1,410

2,260

Salaries and Wages Expense

8,000

8,725

Rent Expense

1,900

2,900

Depreciation Expense

700

Supplies Expense

850

Utilities Expense

1,510

1,510

Interest Expense

100

$53,810

$53,810

$56,435

$56,43 5

Instructions

(a) Journalize the adjusting entries that were made.

(b) Prepare an income statement and an owner's equity statement for the 3 months ending September 30 and a balance sheet at September 30.

(c) If the note bears interest at 12%, how many months has it been outstanding?