Depreciation on the office equipment for the year is $7,500.

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 $800.

On October 1, 2018, Pastina borrowed $45,000 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.

On March 1, 2018, the company lent a supplier $15,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2019.

On April 1, 2018, the company paid an insurance company $3,000 for a two-year fire insurance policy. The entire $3,000 was debited to insurance expense.

$500 of supplies remained on hand at December 31, 2018.

A customer paid Pastina $960 in December for 800 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue.

On December 1, 2018, $1,000 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $500 per month.

PASTINA COMPANY
Adjusted Trial Balance
December 31, 2018
Account Title	Debits	Credits
Cash	$41,650
Accounts receivable	41,000
Prepaid rent	500
Prepaid insurance
Supplies
Inventory
Note receivable
Interest receivable
Office equipment
Accumulated depreciationoffice 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 expense
Supplies expense
Insurance expense
Advertising expense	2,000
Totals	$85,150	$0

[The following information applies to the questions displayed below.] Pastina Company sells various types of pasta to grocery chains as private label brands. The company's fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2018, appears below Account Title Cash Accounts receivable Supplies Inventory Note receivable Interest receivable Prepaid rent Prepaid insurance 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 expense Supplies expense Insurance expense Advertising expense Totals Debits Credits 41,650 41,000 1,000 61,000 15,000 1,000 60,000 22,500 20,000 45,000 60,000 15,000 153,000 68,850 15,000 5,500 500 3,000 2,000 315,500 315,500 Information necessary to prepare the year-end adjusting entries appears below