Question 1. T Accounts for:

Cash, Accounts Receivable, Prepaid Rent, Prepaid Insurance, Supplies, Inventory, Notes Receivable, Office equipment, Interest Receivable, Accumulated Depreciation, Accounts Payable, Salaries Payable, Note Payable, Interest Payable, Deferred Sales Revenue, Common Stock, Retained Earnings, Dividends, Sales Revenue, Interest Revenue, COGS, Salaries Expense, Rent Expense, Depreciation Expense, Interest Expense, Supplies Expense, Insurance Expense, Advertising Expense

Question 2. Create a Post-closing trial balance

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

1. Depreciation on the office equipment for the year is $11,700.
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 $1,650.
3. On October 1, 2024, Pastina borrowed $53,400 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 $23,400, 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 $9,400 for a one-year fire insurance policy. The entire $9,400 was debited to prepaid insurance at the time of the payment.
6. $980 of supplies remained on hand on December 31, 2024.
7. The company received $3,700 from a customer in December for 1,600 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, $2,700 rent was paid to the owner of the building. The payment represented rent for December 2024 and January 2025 at $1,350 per month. The entire amount was debited to prepaid rent at the time of the payment.

PASTINA COMPANY
Adjusted Trial Balance
December 31, 2024
Account Title	Debits	Credits
Cash	$36,100
Accounts receivable	43,400
Supplies	980
Inventory	63,400
Notes receivable	23,400
Interest receivable	1,560
Prepaid rent	1,350
Prepaid insurance	2,350
Office equipment	93,600
Accumulated depreciation		$46,800
Accounts payable		34,400
Salaries payable		1,650
Notes payable		53,400
Interest payable		1,602
Deferred sales revenue		3,700
Common stock		83,800
Retained earnings		37,000
Dividends	7,400
Sales revenue		163,000
Interest revenue		1,560
Cost of goods sold	87,000
Salaries expense	22,250
Rent expense	14,050
Depreciation expense	11,700
Interest expense	1,602
Supplies expense	5,020
Insurance expense	7,050
Advertising expense	4,700
Totals	$426,912	$426,912

PASTINA COMPANY Income Statement For the Year Ended December 31, 2024 Sales revenue $163,000 Cost of goods sold 87,000 Gross profit 76,000 Operating expenses: Salaries expense 22,250 Rent expense 14,050 Depreciation expense 11,700t Supplies expense 5,020 Insurance expense 7,050 Advertising expense 4,700 not attempted not attempted Total operating expenses 64,770 Operating income 11,230 Other income (expense): Interest revenue 1,560 Interest expense (1,602) (42) Net income $11,188

PASTINA COMPANY
Balance Sheet
At December 31, 2024
Assets
Current assets:
Cash		$36,100
Accounts receivable		43,400
Supplies		980
Inventory		63,400
Notes receivable		23,400
Interest receivable		1,560
Prepaid rent		1,350
Prepaid insurance		2,350
Total current assets		172,540
Office equipment	$93,600
Accumulated depreciation	(46,800)
		46,800
Total assets		$219,340
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable		$34,400
Salaries payable		1,650
Interest payable		1,602
Deferred sales revenue		3,700
Total current liabilities		41,352
Notes payable		53,400
Total liabilities		94,752
Shareholders equity:
Common stock	$83,800
Retained earnings	40,788
Total shareholders equity		124,588
Total liabilities and shareholders equity		$219,340