Account Title Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Debits Credits 31,700 40,400 1,700 60,400 20,400 Prepaid rent 1,100 Prepaid insurance 6,400 office equipment 81,600 Accumulated depreciation 30,600 Accounts payable 31,400 Salaries payable Notes payable 50,400 Interest payable e Deferred sales revenue 2,200 Common stock 62,800 Retained earnings 29,500 Dividends 4,400 Sales revenue 148,000 Interest revenue Cost of goods sold 72,000 Salaries expense 19,100 Rent expense 11,200 Depreciation expense 8 Interest expense e Supplies expense Insurance expense Advertising expense Totals 1,300 0 3,200 354,900 354,900 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $10,200. 2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $850. 3. On October 1, 2021, Pastina borrowed $50,400 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years. 4. On March 1, 2021, the company lent a supplier $20,400 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022 5. On April 1, 2021, the company paid an insurance company $6,400 for a one-year fire insurance policy. The entire $6,400 was debited to prepaid insurance. 6. $530 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $2,200 in December for 850 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. 8. On December 1, 2021, $1,100 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $550 per month. The entire amount was debited to prepaid rent.