Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $8,500 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 $1,000. 3. On October 1, 2018, Pastina borrowed $48,600 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 $18,600 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 $3,800 for a two-year fire insurance policy. The entire $3,800 was debited to insurance expense. 6. $620 of supplies remained on hand at December 31, 2018. 7. A customer paid Pastina $1,200 in December for 1,000 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue. 8. On December 1, 2018, $1,400 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $700 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 Complete this question by entering your answers in the tabs below. Statement of Income 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 C C C C $ C OO Income Statement of Balance Sheet Statement SE Prepare the statement of shareholders' equity for the year ended December 31, 2018. PASTINA COMPANY Statement of Shareholders' Equity For the Year Ended December 31, 2018 Total Common Shareholders' Retained Equity Stock Earnings Balance at January 1, 2018 Balance at December 31, 2018 Income Statement Balance Sheet PASTINA COMPANY Balance Sheet At December 31, 2018 0 0 0 C C Journal entry worksheet 1 2 3 Record the entry to close the revenue accounts using the income summary. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Journal entry worksheet 3 1 2 Record the entry to close the expense accounts using the income summary. Note: Enter debits before credits. Date General Journal Credit Debit December 31, 2018 Journal entry worksheet 1 2 3 Record the entry to close the income summary account. Note: Enter debits before credits Date General Journal Credit Debit December 31, 2018 6. Prepare a post-closing trial balance. PASTINA COMPANY Post-Closing Trial Balance December 31, 2018 Debits Credits 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 0 0 Totals
