Problem 2-3 (Static) Adjusting entries (LO2-6) 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 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. 1. Depreciation on the office equipment for the year is $10,000. 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 $1,500. 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. Required: Prepare the necessary December 31, 2021, adjusting journal entries. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Do not round Intermediate calculations. Round your final answers to nearest whole dollar amount.) View transaction list Journal entry worksheet Depreciation on the office equipment for the year is $10,000. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general Journal Required: 1. & 2. Post the unadjusted balances and adjusting entires into the appropriate t-accounts. (Enter the number of the adjusting entry in the column next to the amount. Do not round Intermediate calculations. Round your final answers to nearest whole dollar.) Cash Accounts Receivable Beg. bal. Bog. bal. End. bal. End. bal. Prepaid Rent Prepaid Insurance Beg. bal. Bog. bal. End. bal. End. bal. Supplies Inventory Beg. bal. Beg. bal. End. bal. End. bal. Notes Receivable Office Equipment Beg. bal. Beg. bal End. bal. End. bal. Interest Receivable Accumulated depreciation Beg. bal. Beg. bal. End. bal. End. bal. Accounts Payable Salaries payable Beg. bal. Beg. bal. End. bal. End. bal. Notes Payable Interest Payable Beg. bal. Beg. bal. End. bal. End. bal. Deferred sales revenue Common Stock Beg. bal. Beg. bal. End. bal. End, bal Retained Earnings Dividends Beg. bal. Beg. bal. End. bal. End. bal. Sales revenue Interest revenue Beg. bal. Beg. bal. End. bal. End. bal Cost of goods sold Salaries expense Beg. bal. Bog. bal. End. bal. End. bal. Sales revenue Interest revenue Beg. bal. Beg. bal. End. bal. End. bal. Cost of goods sold Salaries expense Beg. bal. Beg. bal End. bal. End. bal. Rent expense Depreciation expense Beg. bal. Beg. bal. End. bal. End. bal. Interest expense Supplies expense Beg. bal. Beg. bal. End. bal. End. bal. Insurance expense Advertising expense Beg. bal. Beg. bal. End. bal. End. bal. Problem 2-4 (Static) Part 3 3. Prepare an adjusted trial balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) PASTINA COMPANY Adjusted Trial Balance December 31, 2018 Account Title Debits Credits 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 earnings Dividends Sales revenue Interest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Advertising expense Totals $ 0 S 0 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. Complete this question by entering your answers in the tabs below. Income Statement of Statement SE Balance Sheet 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.) PASTINA COMPANY Income Statement For the Year Ended December 31, 2021 Sales revenue Cost of goods sold Gross profit 0 Operating expenses Advertising expense Salaries expense Rent expense Depreciation expense Insurance expense Supplies expense Interest expense 0 0 0 0 $ Income Statement Statement of SE > 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. Complete this question by entering your answers in the tabs below. Income Statement of Statement SE Balance Sheet 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.) PASTINA COMPANY Statement of Shareholders' Equity For the Year Ended December 31, 2021 Total Retained Shareholders' Earnings Equity Balance at January 1, 2021 Common Stock Balance at December 31, 2021 Income Statement Statement of SE Balance Sheet Prepare the classified balance sheet for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) PASTINA COMPANY Balance Sheet At December 31, 2021 Assets 0 0 $ 0 Problem 2-4 (Static) Part 5 5. Prepare closing entries. (Do not round Intermediate calculations. Round your final answers to nearest whole dollar. If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 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 Problem 2-4 (Static) Part 6 6. Prepare a post-closing trial balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) PASTINA COMPANY Post-Closing Trial Balance December 31, 2021 Account Title Debits Credits 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 earnings Sales revenue Interest revenue Cost of goods sold Salaries and wages expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Advertising expense Totals $ 0 $ 0