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Prepare the income statement for the year ended December 31,2021 . (Other expenses should be indicated with a minus sign. Do not round intermediate calculations.

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Prepare the income statement for the year ended December 31,2021 . (Other expenses should be indicated with a minus sign. Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Information necessary to prepare the year-end adjusting entries appears below 1. Depreciation on the office equipment for the year is $10,000 2 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 31,2021 , were $1,500. 3. On October 1, 2021, 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. 4. On March 1, 2021, the company lent a supplier $20,000, 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 $6,000 for a one-year fire insurance policy. The entire $6,000 was debited to prepaid insurance. 6. $800 of supplies remained on hand at December 31,2021. 7. A customer paid Pastina $2,000 in December for 1,500 pounds of spaghetti to be delivered in January 2022 . Pastina credited deferred sales revenue 8. On December 1,2021,$2,000 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,000 per month. The entire amount was debited to prepaid rent. Problem 2-4 (Static) Part 4 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 $4,000 in cash dividends were paid to shareholders during the year. Prepare the statement of shareholders' equity for the year ended December 31, 2021. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

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