Required information Problem 2-4 (Algo) 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, 2021, appears below. Account Title Cash Accounts receivable Supplies Inventory Notes receivable Debits Credits 33,500 41,600 2,300 61,600 21,600 Interest receivable . Prepaid rent 1,700 Prepaid insurance office equipment 36,400 Accumulated depreciation 32,400 Accounts payable 32,600 Salaries payable Notes payable 51,500 Interest payable Deferred sales revenue 2,800 Common stock 73,200 Retained earnings 32,500 Dividends 5,600 Sales revenue 154,000 Interest revenue Cost of goods sold 78,000 Salaries expense 19,700 Rent expense 11,800 Depreciation expense Interest expense Supplies expense Insurance expense Advertising expense Totals 1,900 3,500 377,100 377,100 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $10,800 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 $1,150. 3. On October 1, 2021, Pastina borrowed $51,600 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 $21,600 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 $7,600 for a one-year fire insurance policy. The entire $7,600 was debited to prepaid insurance. 6. $710 of supplies remained on hand at December 31, 2021 7. A customer paid Pastina $2,800 in December for 1150 pounds of spaghets to be delivered in January 2022. Pastina credited deferred sales revenue 8. On December 1, 2021, $1700 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $850 per month. The entire amount was debited to prepaid rent Problem 2-4 (Algo) 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 $5,600 in cash dividends were paid to shareholders during the year. were paid to shareholders during the year. Complete this question by entering your answers in the tabs below. in Income Statement of Statement Balance Sheet SE an ee Co! te ht the l uring the year and that $5,600 in cash c Prepare the income statement for the year ended December 31, 2021. (Other expenses should be indicated with a minus sign.) PASTINA COMPANY Income Statement For the Year Ended December 31, 2021 0 0 0 $ 0 balance sheet as of December 31, 2021. Assume that no common stock was issued during the year and that $5,600 in cash dividen were paid to shareholders during the year. 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 Stock Retained Earnings Total Shareholders' Equity Balance at January 1, 2021 Balance at December 31, 2021 Complete this question by entering your answers in the tabs below. 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 Liabilities and Shareholders' Equity $ 0 Statement of SE Balance Sheet