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. Credits Debits 35, 200 42, 800 2, 900 62, 800 22, 800 2,400 8, 800 91, 200 34, 200 33, 800 Account Title Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Interest payable Deferred sales revenue Common stock Retained eamings Dividends Sales revenue Interest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Advertising expense Totals 52, 800 0 3,400 79, 600 35, 500 6, 800 160,000 84,000 20, 300 12, 400 2,500 4, 400 399, 300 399, 300 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office 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 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 $1,450. 3. On October 1, 2021, Pastina borrowed $52,800 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 $22,800 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 $8,800 for a two-year fire insurance policy. The entire $8,800 was debited to prepaid insurance. 6. $890 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $3,400 in December for 1,450 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. 8. On December 1, 2021, $2,400 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,200 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 $6,800 in cash dividends were paid to shareholders during the year. Answer is not complete. Complete this question by entering your answers in the tabs below. Statement of Income Statement Balance Sheet SE Prepare the income statement for the year ended December 31, 2021. (Other expenses should be indicated with a minus sign.) $ 160,000 (84.000) 76,000 PASTINA COMPANY Income Statement For the Year Ended December 31, 2021 Sales revenue Cost of goods sold Gross profit Operating expenses Salaries expense 21,750 Rent expense 13,600 Depreciation expense 11,400 Supplies expense 4,510 Insurance expense 5,500 Advertising expense 4,400 61,160 14,840 Total operating expenses Operating income Other income (expense) Interest revenue Interest expense Net income 1,520 (1,584) $ (64) 14,776 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 $6,800 in cash dividends were paid to shareholders during the year. Answer is not complete. Complete this question by entering your answers in the tabs below. Income Statement Statement of SE Balance Sheet Prepare the statement of shareholders' equity for the year ended December 31, 2021. PASTINA COMPANY Statement of Shareholders' Equity For the Year Ended December 31, 2021 Common Retained Stock Earnings Balance at January 1, 2021 $ 79,600 $ 35,500 Add: Net income 0 14,776 X Less: Dividends 0 6,800 Balance at December 31, 2021 $ 79,600 $ 43,476 Total Shareholders' Equity 14,776 6,800 Balance Sheet At December 31, 2021 Assets Current assets Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Prepaid rent Prepaid insurance 35,2009 42,800 890 62,800 22,800 1,520 1,200 3,300 x 170,510 Total current assets Office equipment Accumulated depreciation $ 91,200 (45,600) 45,600 216,110 Total assets Liabilities and Shareholders' Equity Current liabilities Accounts payable Salaries payable Notes payable Interest payable Deferred sales revenue 33,800 1,450 52,800 1,584 3,400 93,034 ) Total current liabilities Shareholders' equity Common stock Retained earnings 79,600 43,476x Total shareholders' equity L 123,076