Required information P2-3 and P2-4 (Algo) Adjusting entries, Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [The following information applies to the questions displayed below.] 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 Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Debits $ 35,500 Credits 43,000 3,000 63,000 23,000 0 Prepaid rent 2,500 Prepaid insurance 9,000 Office equipment 92,000 Accumulated depreciation $ 34,500 Accounts payable 34,000 Salaries payable 0 Notes payable 53,000 Interest payable 0 Deferred sales revenue. 3,500 Common stock 81,000 Retained earnings 36,000 Dividends 7,000 Sales revenue 161,000 Interest revenue 0 Cost of goods sold 85,000 Salaries expense 20,400 Rent expense 12,500 Depreciation expense 0 Interest expense 0 Supplies expense 2,600 Insurance expense 0 Advertising expense 4,500 Totals $ 403,000 $ 403,000 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $11,500. 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, 2024, were $1,550. 3. On October 1, 2024, Pastina borrowed $53,000 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, 2024, the company lent a supplier $23,000, and a note was signed requiring principal and interest at 8% to be paid on February 28, 2025. 5. On April 1, 2024, the company paid an insurance company $9,000 for a one-year fire insurance policy. The entire $9,000 was debited to prepaid insurance at the time of the payment. 6. $920 of supplies remained on hand on December 31, 2024. 7. The company received $3,500 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. 8. On December 1, 2024, $2,500 rent was paid to the owner of the building. The payment represented rent for December 2024 and January 2025 at $1,250 per month. The entire amount was debited to prepaid rent at the time of the payment.