Exercise 3-12santo design agency was founded by thomas grant in january 2008. presented below is the adjusted trial balance as of december 31, 2014.santo design agencyadjusted trial balancedecember 31, 2014debitcreditcash$11,000accounts receivable21,500supplies5,000prepai d insurance2,500equipment60,000accumu lated depreciation-equipment$35,000accoun ts payable5,000interest payable150notes payable5,000unearned service revenue5,600salaries and wages payable1,300common stock10,000retained earnings3,500service revenue61,500salaries and wages expense11,300insurance expense850interest expense500depreciation expense7,000supplies expenses3,400rent expense4,000totals$127,050$127,0501 /prepare an income statement for the year ending december 31, 2014.santo design agencyincome statementfor the year ended december 31, 20142/prepare a statement of retained earnings for the year ending december 31, 2014. (list items that increase retained earnings first.)santo design agencystatement of retained earningsfor the year ended december 31, 20143/prepare an unclassified balance sheet at december 31. (list assets in order of liquidity.)santo design agencybalance sheetdecember 31, 2014liabilities and stockholders' equity4/answer the following questions. (round interest rate to 0 decimal places, e. g. 7%) if the note has been outstanding 6 months, what is the annual interest rate on that note? (hint: assume interest payable is the outstanding for 6 months.)the annual interest rate$%(2) if the company paid $17,500 in salaries and wages in 2014, what was the balance in salaries and wages payable on december 31, 2013? the balance in salaries and wages payable$

Each of the following scenarios is based on facts in anactual fraud. categorize each scenario as primarily indicating (1) anincentive to commit fraud, (2) an opportunity to commit fraud, or(3) a rationalization for committing fraud. also state your reasoningfor each scenario.a. there was intense pressure to keep the corporation ' stock from declining further. this pressure came from investors, analysts,and the ceo, whose financial well-being was significantly dependent on the corporation ' s stock price.b. a group of top-level management was compensated (mostly in the form of stock-options) well in excess of what would be considered normal for their positions in this industry.c. top management of the company closely guards internal financial information, to the extent that even some employees on a “need-to-know basis” are denied full access.d. managing specific financial ratios is very important to the company, and both management and analysts are keenly observant of variability in key ratios. key ratios for the company changed very little even though the ratios for the overall industry were quite volatile during the time period.e. in an effort to reduce certain accrued expenses to meet budget targets, the cfo directs the general accounting department to reallocate a division’s expenses by a significant amount. the general accounting department refuses to acquiesce to the request, but the journal entry is made trough the corporate office. an accountant in the general accounting department is uncomfortable with the journal entries required to reallocate divisional expenses. he brings his concerns to the cfo, who assures him that everything will be fine and that the entries are necessary. the accountant considers resigning, but he does not have another job lined up and is worried about supporting his family. therefore, he never voices his concerns to either the internal or external auditors.f. accounting records were either nonexistent or in a state of such disorganization that significant effort was required to locate or compile them.

Synovec co. is growing quickly. dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 7 percent thereafter. if the required return is 11 percent, and the company just paid a dividend of $2.05, what is the current share price? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Which of the following would be an accurate statement about achieving a balanced budget