(Solved): Pastina Company sells various types of pasta to grocery chains as private label brands. The company ...

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. Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the vear is \( \$ 11,400 \). Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is \( \$ 11,400 \). 2. Employee salaries are paid twice a month, on the 22 nd for salaries earned from the 1 st through the 15 th, and on the 7 th of the following month for salaries earned from the 16 th through the end of the month. Salaries earned from December 16 through December 31,2024 , were \( \$ 1,450 \). 3. On October 1, 2024, Pastina borrowed \( \$ 52,800 \) 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, 2024, the company lent a supplier \( \$ 22,800 \), 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 \( \$ 8,800 \) for a one-year fire insurance policy. The entire \( \$ 8,800 \) was debited to prepaid insurance at the time of the payment. 6. \( \$ 890 \) of supplies remained on hand on December \( 31,2024 . \) 7. The company recelved \( \$ 3,400 \) from a customer in December for 1,450 pounds of spaghetti to be delivered in January 2025. Pastina credited deferred sales revenue at the time cash was received. 8. On December \( 1,2024, \$ 2,400 \) rent was paid to the owner of the building. The payment represented rent for December 2024 and January 2025 at \( \$ 1,200 \) 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 \( \$ 6,800 \) 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 \( \$ 6,800 \) 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 \( \$ 6,800 \) 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. PASTINA COMPANY Required information ivote: Utner expenses snouid de inaicated witn a minus sign. PASTINA COMPANY Record the entry to close the revenue accounts. Note: Enter debits before credits. Journal entry worksheet Record the entry to close the expense accounts. Note: Enter debits before credits. Journal entry worksheet Record the entry to close the dividends account. Note: Enter debits before credits. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Cash } \\ \hline Beginning balance & 35,200 & & \\ \hline & & & \\ \hline & & & \\ \hline Ending balance & 35,200 & & \\ \hline \end{tabular} \begin{tabular}{|l|r|l|l|} \hline \multicolumn{3}{|c|}{ Note Receivable } \\ \hline Beginning balance & 22,800 & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline Ending balance & 22,800 & & \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|} \hline \multicolumn{3}{|c|}{ Deferred Sales Revenue } \\ \hline Beginning balance & & 3,400 & \\ \hline & & & \\ \hline & & & \\ \hline Ending balance & & 3,400 & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Depreciation Expense } \\ \hline Beginning balance & & & \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{2}{|c|}{ Interest Expense } \\ \hline & & & \end{tabular} \begin{tabular}{|l|r|r|r|} \hline Beginning balance & 2,500 & \\ \hline & & & \\ \hline & Advertising Expense & & \\ \hline Beginning balance balance & 4,400 & \\ \hline & & \\ \hline & & & \\ \hline & & & \\ \hline Ending balance & 4,400 & & \\ \hline \end{tabular}