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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
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. Account Title Debits Credits Cash gs 35,299 Accounts receivable 42,666 Supplies 2,966 Inventory 62,666 Notes receivable 22,666 Interest receivable 6 Prepaid rent 2,466 Prepaid insurance 3,666 Office equipment 91,266 Accumulated depreciation $ 34,266 Accounts payable 33,366 Salaries payable 6 Notes payable 52,366 Interest payable 6 Deferred sales revenue 3,466 Common stock E9,66 Retained earnings 35,566 Dividends 6,666 Sales revenue 166,666 Interest revenue 0 Cost of goods sold 84,000 Salaries expense 20,308 Rent expense 12,400 Depreciation expense D Interest expense D Supplies expense 2,509 Insurance expense 9 Advertising expense 4,499 Totals $ 399,399: $ 399,393 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the ofce equipment for the year is $11,400. 2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the Tth ofthe following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2024. were $1,450. 3. On October 1. 2024, Pastina borrowed $51800 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, 2024, the company lent a supplier $22,800, and a note was signed requiring principal and interest at 8% to be paid on February 28. 2025. a... l"'*'"" -...-.. . human...) ._.... ._u._.... 5. On April 1, 2024. the company paid an insurance company $8.800 for a oneyeartire insurance policy. The entire $8,800 was debited to prepaid insurance at the time of the payment. 6. $890 of supplies remained on hand on December 31. 2024. 7'. The company received $3,400 from a customer in December for 1,450 pounds of spaghetti to be delivered in January 2025. Pastina credited deferred sales revenue atthe time cash was received. 8. On December 1. 2024. $2.400 rent was paid to the owner ofthe building. The payment represented rent for December 2024 and January 2025 at $1,200 per month. The entire amount was debited to prepaid rent atthe time ofthe payment. Required: Ho 3. First, post the unadjusted balances from the unadjusted trial balance that was given and the adjusting entries that were made in Problem 23 into the appropriate Taccounts {on the Taccounts 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 $6.800 in cash dividends were paid to shareholders during the year. 4-1:. Prepare a statement of shareholders' equity for the year ended December 31, 2024. Assume that no common stock was issued 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 $6,800 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 $6,800 in cash dividends were paid to shareholders during the year. 5. Prepare closing entries and post to the Taccounts (on the T-accounts tab). 6. Prepare a post-closing trial balance. Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4A Req 4B Req 4C Req 5 T accounts Req 6 Post the unadjusted balances and adjusting entries from requirements 1 to 3 into the appropriate Taccounts on this tab. After closing entries are prepared requirement 5, post the closing entries to the T-accounts on this tab. Note: Select the number of the adjusting entry or "closing" in the column next to the amount
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