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Required information Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 28] [The following information applies to the questions disployed below] Pastrat Compony sells various types of pasta to grocery chains as private label brands. The compony's reporting year-end is December 31 . The unacjusted trial balance as of December 31, 2021, appears below. imormaban necessary to prepare the yoar-end adjusting entries appears below. 1. Depreciation on the oflice equipment for the year is $10,800. 2. Employee salaries are paid twice a month, on the 22 nd for salaries eamed trom the lat through the 15 th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Sataries earned from December 16 through December 31. 2021, were $1,150. 3. On October 1.2021, Pastina borrownd $51,600 from a local bank and signed a note. The note requires interest to be. paid annually on September 30 at 124 . The principal is due in 10 years. 4. On March 1, 2021, the company lent a supplier $21,600 and a note was signed requiring principat and interest at 87 to be paid on February 28,2022. 5. On April 1, 2021, the company paid an insurance company $7,600 for a one-year fire inturance policy. The entire $7,600. was debited to prepaid insurance. 6. 5710 of supplies remained en hand at December 3t, 2021. 7. A customer paid Pastina $2,800 in December for 1150 pounds of spaghets to be delivered in Jansaty 2022 . Pastina credited deferred sales revenue. 8. On December 1, 2021, 51,00 rent was paid to the owner of the bullding. The payment represented rent for December 2021 and January 2022 at 5850 per month. The entire amount was debited to prepoid rent. Problem 2-4 (Algo) Part 4 4. Prepare an income statement and a stitement of shaceholders' equity for the year ended December 31, 202t, and a classiffed belance sheet as of December 31,2021 . Asume that no comman stock was lssued during the year and that 55.600 in cash dividends were paid to shareholders during the year. Complete this question by entering your answers in the tabs below. Prepare the income statement for the year ended December 31, 2021. (Other expenses should be indicated with a minus sign.) balance sheet as of December 31,2021 . Assume that no common stock was issued during the year and that $5,600 in cash divid were paid to shareholders during the year. Complete this question by entering your answers in the tabs below. Prepare the statement of shareholders' equity for the year ended December 31, 2021. Complete this question by entering your answers in the tabs below. Prepare the dassified balance sheet for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

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