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 $ $32,600$

Accounts receivable $41,000$

Supplies $2,000$

Inventory $61,000$

Notes receivable $21,000$

Interest receivable $0$

Prepaid rent $1,400$

Prepaid insurance $7,000$

Office equipment $84,000$

Accumulated depreciation $ $31,500$

Accounts payable $32,000$

Salaries payable $0$

Notes payable $51,000$

Interest payable $0$

Deferred sales revenue $2,500$

Common stock $67,000$

Retained earnings $31,000$

Dividends $5,000$

Sales revenue $151,000$

Interest revenue $0$

Cost of goods sold $75,000$

Salaries expense $19,400$

Rent expense $11,500$

Depreciation expense $0$

Interest expense $0$

Supplies expense $1,600$

Insurance expense $0$

Advertising expense $3,500$

Totals $ $366,000$ $ $366,000$

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

Depreciation on the office equipment for the year is $$10,500.$

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 $$1,000.$

On October $1,2024,$ Pastina borrowed $$51,000$ 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 $$21,000,$ 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 $$7,000$ for a one$-$year fire insurance policy. The entire $$7,000$ was debited to prepaid insurance at the time of the payment.

$$620$ of supplies remained on hand on December $31,2024.$

The company received $$2,500$ from a customer in December for $1,000$ pounds of spaghetti to be delivered in January $2025.$ Pastina credited deferred sales revenue at the time cash was received.

On December $1,2024,$ $$1,400$ rent was paid to the owner of the building. The payment represented rent for December $2024$ and January $2025$ at $$700$ per month. The entire amount was debited to prepaid rent at the time of the payment.

Required:

Assume that no common stock was issued during the year and that $$5,000$ in cash dividends were paid to shareholders during the year.

Assume that no common stock was issued during the year and that $$5,000$ in cash dividends were paid to shareholders during the year.

Assume that no common stock was issued during the year and that $$5,000$ in cash dividends were paid to shareholders during the year.

$5.$ Prepare closing entries and post to the T$-$accounts $($on the T$-$accounts tab$).$