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, 2016, appears below.

Account Title	Debits	Credits
Cash	45,650
Accounts receivable	58,000
Supplies	1,850
Inventory	77,000
Note receivable	29,400
Interest receivable	0
Prepaid rent	2,700
Prepaid insurance	0
Office equipment	94,000
Accumulated depreciationoffice equipment		35,250
Accounts payable		37,000
Salaries and wages payable		0
Note payable		71,400
Interest payable		0
Deferred revenue		0
Common stock		60,000
Retained earnings		23,000
Sales revenue		233,000
Interest revenue		0
Cost of goods sold	104,850
Salaries and wages expense	20,100
Rent expense	14,850
Depreciation expense	0
Interest expense	0
Supplies expense	1,350
Insurance expense	6,200
Advertising expense	3,700
Totals	459,650	459,650

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

1.

Depreciation on the office equipment for the year is $11,750.

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, 2016, were $1,650.

3.

On October 1, 2016, Pastina borrowed $71,400 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, 2016, the company lent a supplier $29,400 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2017.

5.

On April 1, 2016, the company paid an insurance company $6,200 for a two-year fire insurance policy. The entire $6,200 was debited to insurance expense.

6.

$980 of supplies remained on hand at December 31, 2016.

7.

A customer paid Pastina $1,920 in December for 1,600 pounds of spaghetti to be delivered in January 2017. Pastina credited sales revenue.

8.

On December 1, 2016, $2,700 rent was paid to the owner of the building. The payment represented rent for December 2016 and January 2017, at $1,350 per month.

Post the opening balances and edjusting entries into the appropriate following t-accounts: Cash, Accounts Recievable, Accounts payable, Salaries and Wages expense, prepaid Rent, Rent Expense, prepaid Insurance, Supplies, Inventory, Notes Recievable, Office Equipment, Accumulated Depreciation-O.E, Interest Recievable, Interest Payable,Deffered Revenue, common stock, Retained Earnings, Sales Revenue, Interest Revenue, Cost of Goods Sold, Depreciation Expense, Supplies Expense, Interest Expense, Insurance Expense, Advertising Expense.

prepare an adjusted trial balance.

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, 2016. prepare closing entries. Prepare post-closing trial balance.