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, 2021, appears below. Account Title Debits Credits Cash 36,700 Accounts receivable 43,800 Supplies 3,400 Inventory 63,800 Notes receivable 23,800 Interest receivable Prepaid rent 2,900 Prepaid insurance 9,800 Office equipment 95,200 Accumulated depreciation 35,700 Accounts payable 34,800 Salaries payable Notes payable 53,800 Interest payable Deferred sales revenue 3,900 Common stock 86,600 Retained earnings 38,000 Dividends 7,800 Sales revenue 165,000 Interest revenue Cost of goods sold 89,000 Salaries expense 20,800 Rent expense 12,200 Depreciation expense Interest expense Supplies expense 3,000 Insurance expense Advertising expense 4.900 Totals 417,800 417,800 1. Depreciation on the office equipment for the year is $11.900. 2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $1,750. 3. On October 1, 2021. Pastina borrowed $53,800 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, 2021, the company lent a supplier $23.800 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022 5. On April 1, 2021, the company paid an insurance company $9,800 for a one-year fire insurance policy. The entire $9,800 was debited to prepaid insurance. 6. $1,040 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $3,900 in December for 1700 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. 8. On December 1, 2021. $2,900 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,450 per month. The entire amount was debited to prepaid rent. 4. Prepare an income statement and a statement of shareholders' equity for the year ended December 31, 2021, and a classified balance sheet as of December 31, 2021. Assume that no common stock was issued during the year and that $7,800 in cash dividends were paid to shareholders during the year. Journal entry worksheet 1 2 3 Record the entry to close the revenue accounts. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 Record entry Clear entry View general journal