E3-12 (Prepare Financial Statements)Flynn Design Agency was founded by Kevin Fly

E3-12 (Prepare Financial Statements)Flynn Design Agency was founded by Kevin Flynn in January 2006. Presented below is the adjusted trial balance as of December 31 2012.Instructions (a)Prepare an income statement and a statement of retained earnings for the year ending December 31 2012 and an unclassified balance sheet at December 31.Exercises139 140 Chapter 3 The Accounting Information System(b)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 $17500 in salaries and wages in 2012 what was the balance in Salaries and Wages Payable on December 31 2011?