Flynn Design Agency was founded by Kevin Flynn in January 2006. Presented below

Flynn Design Agency was founded by Kevin Flynn in January 2006. Presented below is the adjusted trial balance as of Desember 312012
Dr. Cr.
Cash $10000
accounts Receivable $21500
Art Supplies $5000
Prepaid Insurance $2500
Printing Equipment $60000
Accumulated Depreciation $35000
Accounts Payable $8000
Interest Payable $150
Notes Payable $5000
Unearned Advertising Revenue $5600
Salaries Payable $1300
Common stock $10000
Retained Earnings $3500
Advertising Revenue $58500
Salaries Expense $12300
Insurance Expense $850
Interest Expense $500
Depreciation Expense $7000
Art Supplies Expense $3400
Rent Expense $4000 Total $127050 $127050 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. B) Answer the following questions.
1) If the note has been outstanding 6 months what is the annual interest rate on that notes?
2) If the company paid $17500 in salaries in 2012 what was the balance in Salaries Payable on December 31 2011?