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 fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2018, appears below. Account Title Debits Credits Cash 44,950 Accounts receivable 60,000 Supplies 1,950 79,000 31,200 Inventory Note receivable Interest receivable Prepaid rent Prepaid insurance Office equipment 2,900 0 98,000 Accumulated depreciation-office equipment Accounts payable 36,750 39,00 wages payable Note navable Interest payable 73,200 0 Deferred revenue C Common stock 60,000 Retained earnings 24,000 Sales revenue 243,000 Interest revenue Cost of goods sold Salaries and wages expense 109,350 20,700 Rent expense Depreciation expense Interest expense Supplies expense 15,950 0 1,450 6,600 Insurance expense Advertising expense 3,900 Totals 475 , 950 475,950 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $12,2 50. 2. Employee salaries and wages are paid twice a month, on the 22nd for salaries and wages earned from the 1st through the 15th, and on the 7th of the following month for salaries and wages earned from the 16th through the end of the month. Salaries and wages earned from December 16 through December 31, 2018, were $1,750. 3. On October 1, 2018, Pastina borrowed $73,200 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, 2018, the company lent a supplier $31,200 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2019. 5. On April 1, 2018, the company paid an insurance company $6,600 for a two-year fire insurance policy. The entire $6,600 was debited to insurance expense. 6. $1,040 of supplies remained on hand at December 31, 2018. 7. A customer paid Pastina $2,040 in December for 1,700 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue. 8. On December 1, 2018, $2,900 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $1,450 per month. 4. Prepare the income statement, statement of shareholders' equity and classified balance sheet for the year ended December 31, 2018 Complete this question by entering your answers in the tabs below. Statement of Income Balance Sheet Statement Prepare the statement of shareholders' equity for the year ended December 31, 2018. PASTINA COMPANY Statement of Shareholders' Equity For the Year Ended December 31, 2018 Total Common Retained Shareholders' Earnings Stock Equity 60,000 $ Balance at January 1, 2018 Add: Net income 70,659 Less: Dividends 272,845 60,000 94,659 $ 154,659 Balance at December 31, 20188
