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

Depreciation on the office equipment for the year is $12,000.

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 $1,700.

On October 1, 2018, Pastina borrowed $72,300 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 $30,300 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 $6,400 for a two-year fire insurance policy. The entire $6,400 was debited to insurance expense.

$1,010 of supplies remained on hand at December 31, 2018.

A customer paid Pastina $1,980 in December for 1,650 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue.

On December 1, 2018, $2,800 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $1,400 per month.

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

.

PASTINA COMPANY
Adjusted Trial Balance
December 31, 2018
Account Title	Debits	Credits
Cash	$45,300
Accounts receivable	59,000
Prepaid rent	1,400
Prepaid insurance	4,000
Supplies	1,010
Inventory	78,000
Note receivable	30,300
Interest receivable	2,020
Office equipment	96,000
Accumulated depreciationoffice equipment		$48,000
Accounts payable		38,000
Salaries and wages payable		1,700
Note payable		72,300
Interest payable		2,169
Deferred revenue		1,980
Common stock		60,000
Retained earnings		23,500
Sales revenue		236,020
Interest revenue		2,020
Cost of goods sold	107,100
Salaries and wages expense	22,100
Rent expense	16,800
Depreciation expense	12,000
Interest expense	2,169
Supplies expense	2,290
Insurance expense	2,400
Advertising expense	3,800
Totals	$485,689	$485,689

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 45,300 59,000 1,900 78,000 30,300 2,800 96,000 36,000 38,000 72,300 60,000 23,500 238,000 107,100 20,400 15,400 1,400 6,400 3 , 800 467,800 467,800