Prepare an income statement for the year ended December $31,2024.$ Assume that no common stock was issued during the year and that $$4,000$ in cash dividends were paid to shareholders during the year.

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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 as of December $31,2024,$ appears below.

Account Title Debits Credits

Cash $ $30,000$

Accounts receivable $40,000$

Supplies $1,500$

Inventory $60,000$

Notes receivable $20,000$

Interest receivable $0$

Prepaid rent $2,000$

Prepaid insurance $6,000$

Office equipment $80,000$

Accumulated depreciation $ $30,000$

Accounts payable $31,000$

Salaries payable $0$

Notes payable $50,000$

Interest payable $0$

Deferred sales revenue $2,000$

Common stock $60,000$

Retained earnings $28,500$

Dividends $4,000$

Sales revenue $146,000$

Interest revenue $0$

Cost of goods sold $70,000$

Salaries expense $18,900$

Rent expense $11,000$

Depreciation expense $0$

Interest expense $0$

Supplies expense $1,100$

Insurance expense $0$

Advertising expense $3,000$

Totals $ $347,500$ $ $347,500$

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

Depreciation on the office equipment for the year is $$10,000.$

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 $$1,500.$

On October $1,2024,$ Pastina borrowed $$50,000$ 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 $$20,000,$ 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 $$6,000$ for a one$-$year fire insurance policy. The entire $$6,000$ was debited to prepaid insurance at the time of the payment.

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

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

On December $1,2024,$ $$2,000$ rent was paid to the owner of the building. The payment represented rent for December $2024$ and January $2025$ at $$1,000$ per month. The entire amount was debited to prepaid rent at the time of the payment.