Marinara Company sells various types of pasta sauce to grocery chains as private label brands. The company's fiscal year-end is December 31. Their unadjusted trial balance as of December 31, 2019, appears below. Additional information is below the trial balance.Prepare the necessary adjusting entries, and if needed create T-Accounts showing beginning balances, adjustments, and ending balances. Assume that no common stock was issued during the year and that $4,000 in cash dividends were paid to shareholders during the year.After you have prepared the adjusting entries prepare the income statement, closing entries, and balance sheet for the year ended December 31, 2019.

Account Title	Debits		Credits
Cash	30,000
Accounts receivable	40,000
Supplies	1,500
Inventory	60,000
Note receivable	20,000
Interest receivable	0
Prepaid rent	2,000
Prepaid insurance	0
Office equipment	80,000
Accumulated depreciationoffice equipment			30,000
Accounts payable			31,000
Salaries and wages payable			0
Note payable			50,000
Interest payable			0
Deferred revenue			0
Common stock			60,000
Retained earnings			24,500
Sales revenue			148,000
Interest revenue			0
Cost of goods sold	70,000
Salaries and wages expense	18,900
Rent expense	11,000
Depreciation expense	0
Interest expense	0
Supplies expense	1,100
Insurance expense	6,000
Advertising expense	3,000
Totals	343,500		343,500

Depreciation on the office equipment for the year is $10,000. 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. On March 1, 2019, the company lent a supplier $20,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2021. On April 1, 2019, the company paid an insurance company $6,000 for a two-year fire insurance policy. The entire $6,000 was debited to insurance expense.On October 1, 2019, Marinara 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. A customer paid Marinara $2,000 in December for 1,500 pounds of spaghetti sauce to be delivered in January 2020 and Marinara credited sales revenue. On December 1, 2019, $2,000 rent was paid to the owner of the building. The payment represented rent for December 2019 and January 2020 at $1,000 per month. $800 of supplies remained on hand at December 31, 2019.