December 31. The unadjusted trial balance as of December 31, 2018, appears below. Account Title Cash Accounts receivable Supplies Debits Credits 41,300 42,000 1,050 Inventory 62,000 Note receivable Interest receivable Prepaid rent Prepaid insurance 15,900 0 1,100 0 Accounts payable Salaries and wages payable Note payable Interest payable Office equipment Accumulated depreciation-office equipment 62,000 23,250 21,000 0 45,900 0 Deferred revenue Common stock 0 60,000 Retained earnings Sales revenue 15,500 158,000 Interest revenue 0 Cost of goods sold 71,100 Salaries and wages expense 15,300 Rent expense 6,050 Depreciation expense 0 Interest expense 0 Supplies expense Insurance expense Advertising expense Totals 550 3,200 2,100 323,650 323,650 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $7,750. 2. Employee salaries and wages are paid twice a month, on the 22nd for salaries and wages earned from the 1st through the 15th, and on the 7th of the following month for salaries and wages earned from the 16th through the end of the month. Salaries and wages earned from December 16 through December 31, 2018, were $850. 3. On October 1, 2018, Pastina borrowed $45,900 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, 2018, the company lent a supplier $15,900 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2019. 5. On April 1, 2018, the company paid an insurance company $3,200 for a two-year fire insurance policy. The entire $3,200 was debited to insurance expense. 6. $530 of supplies remained on hand at December 31, 2018. 7. A customer paid Pastina $1,020 in December for 850 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue. 8. On December 1, 2018, $1,100 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $550 per month. Cash Adjusted Trial Balance December 31, 2018 Account Title Debits Credits Accounts receivable Prepaid rent Prepaid insurance Supplies Inventory Note receivable Interest receivable Office equipment Accumulated depreciation-office equipment Accounts payable Salaries and wages payable Note payable Interest payable Deferred revenue Common stock Retained earnings Sales revenue Interest revenue Cost of goods sold Salaries and wages expense Rent expense Depreciation expense Interest eynense Supplies expense Insurance expense Advertising expense Totals 0 For requirement 4, Assume that no common stock was issued during the year and that $3,600 in cash dividends were paid to shareholders during the year. 4. Prepare the income statement, statement of shareholders' equity and classified balance sheet for the year ended December 31, 2018. Complete this question by entering your answers in the tabs below. Income Statement of Balance Sheet Statement SE Prepare the income statement for the year ended December 31, 2018. (Other expenses should be indicated with a minus sign.) PASTINA COMPANY Income Statement For the Year Ended December 31, 2018 0 + PASTINA COMPANY Statement of Shareholders' Equity For the Year Ended December 31, 2018 Common Retained Total Shareholders' Stock Earnings Equity Balance at January 1, 2018 Balance at December 31, 2018 Income Statement Statement of Balance Sheet SE f5 Po ed ok t Prepare the classified balance sheet for the year ended December 31, 2018. (Amou a minus sign.) PASTINA COMPANY Balance Sheet At December 31, 2018 0 Required information < Statement of SE 0 0 59 $ Balance Sheet