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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	Debits	Credits
Cash	$ 34,900
Accounts receivable	42,600
Supplies	2,800
Inventory	62,600
Notes receivable	22,600
Interest receivable	0
Prepaid rent	2,300
Prepaid insurance	8,600
Office equipment	90,400
Accumulated depreciation		$ 33,900
Accounts payable		33,600
Salaries payable		0
Notes payable		52,600
Interest payable		0
Deferred sales revenue		3,300
Common stock		78,200
Retained earnings		35,000
Dividends	6,600
Sales revenue		159,000
Interest revenue		0
Cost of goods sold	83,000
Salaries expense	20,200
Rent expense	12,300
Depreciation expense	0
Interest expense	0
Supplies expense	2,400
Insurance expense	0
Advertising expense	4,300
Totals	$ 395,600	$ 395,600

Information necessary to prepare the year-end adjusting entries appears below.

1. Depreciation on the office equipment for the year is $11,300.
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 $1,400.
3. On October 1, 2024, Pastina borrowed $52,600 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, 2024, the company lent a supplier $22,600, 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 $8,600 for a one-year fire insurance policy. The entire $8,600 was debited to prepaid insurance at the time of the payment.
6. $860 of supplies remained on hand on December 31, 2024.
7. The company received $3,300 from a customer in December for 1,400 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, $2,300 rent was paid to the owner of the building. The payment represented rent for December 2024 and January 2025 at $1,150 per month. The entire amount was debited to prepaid rent at the time of the payment.

Required:

1 to 3. First, post the unadjusted balances from the unadjusted trial balance that was given and the adjusting entries that were made in Problem 2-3 into the appropriate T-accounts (on the T-accounts tab). Then prepare an adjusted trial balance.

4-a. Prepare an income statement for the year ended December 31, 2024. Assume that no common stock was issued during the year and that $6,600 in cash dividends were paid to shareholders during the year.

4-b. Prepare a statement of shareholders' equity for the year ended December 31, 2024. Assume that no common stock was issued during the year and that $6,600 in cash dividends were paid to shareholders during the year.

4-c. Prepare a classified balance sheet as of December 31, 2024. Assume that no common stock was issued during the year and that $6,600 in cash dividends were paid to shareholders during the year.

5. Prepare closing entries and post to the T-accounts (on the T-accounts tab).

6. Prepare a post-closing trial balance.

REQ 1 -

Post the unadjusted balances and adjustingentries into the appropriate T-accounts (on the T-accounts tab). Then prepare an adjusted trial balance.

Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar.

PASTINA COMPANY
Adjusted Trial Balance
December 31, 2024
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	$0

REQ 4A -

Prepare an income statement for the year ended December 31, 2024. Assume that no common stock was issued during the year and that$6,600 in cash dividends were paid to shareholders during the year.

Note: Other expenses should be indicated with a minus sign.

PASTINA COMPANY
Income Statement
For the Year Ended December 31, 2024
		0
Operating expenses:
Total operating expenses		0
		0
Other income (expense):
		0
		$0

REQ 4B - Prepare a statement of shareholders' equity for the year ended December 31, 2024. Assume that no common stock was issued during the year and that $6,600 in cash dividends were paid to shareholders during the year.

PASTINA COMPANY
Statement of Shareholders' Equity
For the Year Ended December 31, 2024
	Common Stock	Retained Earnings	Total Shareholders Equity
Balance at January 1, 2024
Balance at December 31, 2024