Pastina Company manufactures and 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 $31,2011,$ appear

The equipment is being depreciated using the straight$-$line method over an eight$-$year useful life with $$10,000$ salvage value.

The company estimates that $4\%$ of all year$-$end accounts receivable probably will not be collected

Employee wages are paid twice a month, on the $22$ nd wages earned for the $1$ st through the ${15}^{th},$ and on the $7^{th}$ of the following month for wages earned from the ${16}^{th}$ through the end of month. Wage earned from December $16$ through December $31,2011,$ were $$1,565$

On October $1,2011,$ Pastina borrowed $$50,800$ from a local bank and signed a note. The note requires interest to be paid annually on September $30$ at $10\%.$ The principal is due in $10$ year

On April $1,2011,$ the company lent a supplier $$28,000$ and a note was signed requiring principal and interest at $7\%$ to be paid on February $28,2012$

On March $1,2011,$ the company paid an insurance company $$7,500$ for a two$-$year fire insurance policy. The entire $$7,500$ was debited to insurance expense.

$$1,050$ of supplies remained on hand at December $31,2011$

A customer paid Pastina $$2,500$ in December for $1,500$ pounds of spaghetti to be manufactured and delivered in January $2012.$ Pastina credited sales revenue.

On December $1,2011.$ $$2,500$ rent was paid to the owner of the building. The payment represented rent for December and January $2012,$ at $$1,250$ per month.

On July $1,2011,$ the company purchased $$12,000$ of IBM Corporation bonds at face value. The bonds pay interest twice a year on January $1$ and July $1.$ The annual rate is $12\%.$

The company's income tax expense for the year was $$10,650.$ Investments were sold during the year at a loss of $$4,500.$ Company also had unrealized gains of $70$ for the year on investments accounted for securities available for sale.

Earthquake happened was considered as unusual and infrequent.

During the year, company completed the sale of one of its operating divisions that qualifies as component of the entity according to IFRS. The division had incurred an operating income of $$560$ in

Loans to employees are due on September $30,2012.$

Short$-$term investments consist of marketable equity securities that the company plans to sell in

Notes payable consists of two notes, one for $$40,000$ due on February $1,2012,$ and the remaining balance relates to the loan from a bank mentioned in Note $4.$

One million shares of common stock were outstanding at the beginning of the year. Additiona $200,000$ shares were issued on March $31.$ Also $70,000$ were issued on Dect $200,000$ shares were issued on March $31.$ Also $70,000$ were issued on December $1.$ Fifty thousand of preferred shares were outstanding throughout the year and $$355$ preferred stock dividends were declared during the year.

Instructions:

Prepare necessary adjusting entries for the year

Prepare an adjusted Trial balance.

Prepare company's Combined statement of income and comprehensive income for

Prepare company's Statement of retained earnings.

Prepare a classified Balance sheet for the company at December $31,2011.$