Credits Debits 30,000 40,000 1,500 60,000 20,000 0 2,000 6,000 80,000 Account Title Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Interest payable Deferred sales revenue Common stock Retained earnings Dividends Sales revenue Interest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense 30,000 31,000 0 50,000 0 2,000 60,000 28,500 4,000 146,000 0 70,000 18,900 11,000 0 0 1,100 0 Insurance expense Advertising expense Totals 0 3,000 347,500 347,500 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $10,000. 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 $1,500. 3. On October 1, 2021, Pastina borrowed $50,000 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 $20,000, 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 $6,000 for a one-year fire insurance policy. The entire $6,000 was debited to prepaid insurance. 6. $800 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $2,000 in December for 1,500 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. 8. On December 1, 2021, $2,000 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,000 per month. The entire amount was debited to prepaid rent. sign. Do not round intermediate calculations. Round your final answers PASTINA COMPANY Income Statement For the Year Ended December 31, 2021 Sales revenue Cost of goods sold 146,000 70,000 76,000 $ 12,000 3,000 20,400 Gross profit Rent expense Advertising expense Salaries expense Utilities expense Depreciation expense Supplies expense Insurance expense 0 10,000 1,800 4,500 PASTINA COMPANY Statement of Shareholders' Equity For the Year Ended December 31, 2021 Common Stock Retained Earnings $ 60,000 $ Balance at January 1, 2021 Add: Net income Less: Dividends Balance at December 31, 2021 28,500 24,133 (4,000) 48,633 Total Shareholders' Equity 88,500 26,383 (4,000) 108,633 $ 60,000 $ PASTINA COMPANY Balance Sheet At December 31, 2021 Assets Current assets Cash Notes receivable Interest receivable Accounts receivable Supplies Inventory Prepaid rent 30,000 20,000 1,333 40,000 800 60,000 1,500 1,000 154,633 Total current assets Office equipment Accumulated depreciation $ 80,000 (40,000) 40,000 194,633 $ $ Total assets Liabilities and Shareholders' Equity Current liabilities Accounts payable Salaries payable Interest payable Deferred rent revenue Notes payable Total current liabilities 31,000 1,500 1,500 2,000 50,000 86,000