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Unformatted text preview: ...........................................................60,000 $ Less: Accumulated depreciation—equipment ..............33,000 27,000 Total assets......................................................... $67,000 Liabilities and Stockholders’ Equity Liabilities Notes payable .......................................................... 5,000 $ Accounts payable.................................................... 5,000 Unearned service revenue ...................................... 5,600 Salaries and wages payable ................................... 1,300 Interest payable ....................................................... 150 Total liabilities .................................................. $17,050 Stockholders’ equity Common stock ........................................................10,000 $ Retained earnings ...................................................39,950 49,950 Total liabilities and stockholders’ equity ............................................................. $67,000 (c) 1. Interest is $50 per month or 1% of the note payable. 1% X 12 = 12% interest per year. 2. Salaries and Wages Expense, $11,300 less Salaries and Wages Payable 12/31/14, $1,300 = $10,000. Total Payments, $12,500 – $10,000 = $2,500 Salaries and Wages Payable 12/31/13....
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