Question

The adjusted trial balance for Westerberg, Inc. as of 12/31/14 appears below.  All of the accounts have their standard or normal debit/credit balance.  Please show your work!

Account	12/31/14 Balance
Accounts Payable	20,000
Accounts Receivable	50,000
Accumulated Depreciation – Equipment	40,000
Cash	20,000
Common Stock	55,000
Cost of Goods Sold	10,000
Dividends Declared	5,000
Dividends Payable	10,000
Equipment	400,000
Insurance Expense	12,000
Interest Expense	2,500
Interest Payable	2,000
Inventory	30,000
Notes Payable	60,000
Prepaid Insurance	16,000
Rent Expense	24,000
Retained Earnings	300,000
Salary Expense	100,000
Salary Payable	5,500
Sales Revenue	200,000
Supplies	25,000
Supplies Expense	10,000
Unearned Revenue	12,000

Question 1: The note payable was borrowed on March 1^st.  It is the only interest-bearing liability that the company was involved with this year.  What was the interest rate?

Question 2: How much cash did Westerberg collect from its’ customers, assuming Accounts Receivable on 12/31/13 was $30,000, and the company began the year with no unearned revenue?

Question 3: How much cash did Westerberg pay to its employees, assuming the 12/31/13 balance in salary payable was $10,000?

Answer 1