Required Information [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 36,700 Credits 43,800 3,400 63,800 23,800 Interest receivable Prepaid rent 2,900 Prepaid insurance 9,800 Office equipment 95,200 Accumulated depreciation 35,700 Accounts payable 34,800 Salaries payable Notes payable 53,800 Interest payable Deferred sales revenue 3,900 Common stock 86,600 Retained earnings 38,000 Dividends 7,800 Sales revenue 165,000 Interest revenue Cost of goods sold 89,000 Salaries expense Rent expense 20,800 12,900 Depreciation expense Interest expense Supplies expense Insurance expense Advertising expense Totals 3,000 4,900 417,800 417,800 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $11,900. 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 $1,750. 3. On October 1, 2021, Pastina borrowed $53,800 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 $23,800 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 $9,800 for a one-year fire insurance policy. The entire $9,800 was debited to prepaid insurance. 6. $1,040 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $3,900 in December for 1,700 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. 8. On December 1, 2021, $2,900 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,450 per month. The entire amount was debited to prepaid rent.