Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year$-$end

is December $31.$ The unadjusted trial balance as of December $31,2024,$ appears below.

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

Depreciation on the office equipment for the year is $$11,100.$

Employee salaries are paid twice a month, on the $22$ nd for salaries earned from the $1$st through the $15$th$,$ and on the $7$th

of the following month for salaries earned from the $16$ th through the end of the month. Salaries earned from December

$16$ through December $31,2024,$ were $$1,300.$

On October $1,2024,$ Pastina borrowed $$52,200$ 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 $1,2024,$ the company lent a supplier $$22,200,$ and a note was signed requiring principal and interest at $8\%$ to

be paid on February $28,2025.$

On April $1,2024,$ the company paid an insurance company $$8,200$ for a one$-$year fire insurance policy. The entire

$$8,200$ was debited to prepaid insurance at the time of the payment.

$$800$ of supplies remained on hand on December $31,2024.$

The company received $$3,100$ from a customer in December for $1,300$ pounds of spaghetti to be delivered in January

Pastina credited deferred sales revenue at the time cash was received.

On December $1,2024,$$$2,100$ rent was paid to the owner of the building. The payment represented rent for December

$2024$ and January $2025$ at $$1,050$ per month. The entire amount was debited to prepaid rent at the time of the

payment.

Required:

$1$ to $3.$ First, post the unadjusted balances from the unadjusted trial balance that was given and the adjusting entries that were made in

Problem $2-3$ into the appropriate T$-$accounts $($on the T$-$accounts tab$).$ Then prepare an adjusted trial balance.

$4-$a$.$ Prepare an income statement for the year ended December $31,2024.$ Assume that no common stock was issued during the year

and that $$6,200$ in cash dividends were paid to shareholders during the year.

$4-$b$.$ Prepare a statement of shareholders' equity for the year ended December $31,2024.$ Assume that no common stock was issued

during the year and that $$6,200$ in cash dividends were paid to shareholders during the year.

$4-$c$.$ Prepare a classified balance sheet as of December $31,2024.$ Assume that no common stock was issued during the year and that

$$6,200$ in cash dividends were paid to shareholders during the year.

Prepare closing entries and post to the T$-$accounts $($on the T$-$accounts tab$).$

Prepare a post$-$closing trial balance.