U 3. Prepare an adjusted trial balance. (Do not round Intermediate calculations. Round your final answers to nearest wh 2 of 5 Answer is complete and correct. Credits OOOOOOOOO PASTINA COMPANY Adjusted Trial Balance December 31, 2021 Account Title Debits Cash 36.400 Accounts receivable 43.800 Supplies 1,010 Inventory 63.600 Notes receivable 23.600 Interest receivable 1.573 Prepaid rent 1.400 Prepaid insurance 2.400 Office equipment 94.400 Accumulated depreciation Accounts payable Salaries payable Notes payable Interest payable Deferred sales revenue Common stock Retained earnings Dividends 7,600 Sales revenue Interest revenue Cost of goods sold 88,000 Salaries expense 22.400 Rent expense 14.200 Depreciation expense 11,800 Interest expense 1.608 Supplies expense 5.190 Insurance expense 7.200 Advertising expense 4.800 Totals $ 430.781 47,200 34.600 1,700 53.600 1,808 3.800 85,200 37.500 OOOOOOOO 164.000 1.573 OOOO $ 430.781 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. Credits Debits 36,400 43,600 3,300 63,600 23,600 2,800 9,600 94,400 35,400 34,600 53,600 Account Title 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 3,800 85,200 37,500 7,600 164,000 88,000 20,700 12,800 2,900 4,800 414,100 414,100 Information necessary to prepare the year-end adjusting entries appears below. Totals 414,100 414,100 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $11,800. 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 $1,700. 3. On October 1, 2021, Pastina borrowed $53,600 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 $23,600 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 $9,600 for a one-year fire insurance policy. The entire $9,600 was debited to prepaid insurance. 6. $1,010 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $3,800 in December for 1,650 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. 8. On December 1, 2021, $2,800 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,400 per month. The entire amount was debited to prepaid rent. Prepare the income statement for the year ended December 31, 2021. (Other expe sign.) PASTINA COMPANY Income Statement For the Year Ended December 31, 2021 Sales revenue Cost of goods sold Gross profit Operating expenses Salaries expense Rent expense Depreciation expense Supplies expense Insurance expense Advertising expense Total operating expenses Operating income Other income (expense) Interest revenue Interest expense Net income 7. Prepare an income statement and a statement of shareholders' equity for the year ended December 3 Dalance sheet as of December 31, 2021. Assume that no common stock was issued during the year and 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 Retained Stock Earnings Balance at January 1, 2021 Add: Net income Less: Dividends Balance at December 31, 2021 Total Shareholders' Equity Assets Current assets Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Prepaid rent Prepaid insurance Total current assets Office equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Current liabilities Accounts payable Salaries payable Notes payable Interest payable Deferred sales revenue Total current liabilities Shareholders' equity Common stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity