Alfredo Company sells several types of pasta and sauce to grocery chains. The company's reporting year$-$end is December $31.$ The unadjusted trial balance as of December $31,2022$ appears below.

Account Title Debit Credit

Cash $30,000$

Accounts Receivable $40,000$

Allowance for Doubtful Accounts $4,000$

Investments $-$ Available for Sale $120,000$

Supplies $1,500$

Inventory $60,000$

Notes Receivable $20,000$

Prepaid Insurance $7,000$

Office equipment $100,000$

Accumulated Depreciation $40,000$

Accounts payable $31,000$

Notes Payable $50,000$

Common Stock $60,000$

Retained Earnings $28,500$

Sales Revenue $400,000$

Cost of Goods Sold $90,000$

Salaries expense $118,900$

Rent expense $13,000$

Supplies expense $2,100$

Advertising Expense $3,000$

Totals $609,500609,500$

Information necessary to prepare the year$-$end adjusting entries appears below.

$1.$ Office equipment is depreciated at a rate of $10\%$ per year.

$2.$ Employees are paid weekly on Friday, for the previous $5-$day work week. Employees were paid on Friday, December $30,$ for the week ended Friday, December $23$rd$.$ Weekly salaries are $$2,400$

$3.$ On October $1,2022,$ Alfredo borrowed $$50,000$ from a local bank and signed a note. The note requires interest to be paid annually on September $30$ at $6\%.$ The principal is due in $10$ years.

$4.$ On March $1,2022,$ the company lent a supplier $$20,000$ and a note was signed requiring principal and interest at $5\%$ to be paid February $28,2023.$

$5.$ On April $1,2022$ the company paid an insurance company $$7,000$ for a one$-$year fire insurance policy.

$6.$ $$600$ of supplies remained on hand at December $31,2022.$

$7.$ The company received $$3,000$ from a customer in December for $1,500$ pounds of spaghetti to be delivered in January $2023.$

$8.$ Management estimates that $5\%$ of receivables will become uncollectible.

$9.$ In March, $2022,$ the company invested $$120,000$ in stock of a start$-$up company. As of December $31,2022,$ the investment's fair value is $$170,000$

The company's stock consists of $60,000$ shares of no par value stock. This is the maximum amount of shares authorized. The income tax rate is $21\%.$

Required:

a$.$ Using the information provided, prepare a $10-$column worksheet for Alfredo's for the year ended December $31,2022.$

b$.$ Prepare a separate worksheet showing your adjusting entries in good form.

c$.$ Prepare a multiple step income statement, statement of retained earnings and a classified balance sheet. A statement of cash flow is not required.