P$2-3$ and P$2-4($Static$)$ Adjusting entries, Accounting cycle; adjusting entries through post$-$closing trial balance $[$LO$2-4,2-6,2-7,2-8]$Skip to question$[$The following information applies to the questions displayed below.$]$Pastina Company sells various types of pasta to grocery chains as private label brands. The companys reporting year$-$end is December $31.$ The unadjusted trial balance as of December $31,2024,$ appears below.Account TitleDebitsCreditsCash$ $30,000$ Accounts receivable$40,000$ Supplies$1,500$ Inventory$60,000$ Notes receivable$20,000$ Interest receivable$0$ Prepaid rent$2,000$ Prepaid insurance$6,000$ Office equipment$80,000$ Accumulated depreciation $ $30,000$Accounts payable $31,000$Salaries payable $0$Notes payable $50,000$Interest payable $0$Deferred sales revenue $2,000$Common stock $60,000$Retained earnings $28,500$Dividends$4,000$ Sales revenue $146,000$Interest revenue $0$Cost of goods sold$70,000$ Salaries expense$18,900$ Rent expense$11,000$ Depreciation expense$0$ Interest expense$0$ Supplies expense$1,100$ Insurance expense$0$ Advertising expense$3,000$ Totals$ $347,500$$ $347,500$Information necessary to prepare the year$-$end adjusting entries appears below.Depreciation on the office equipment for the year is $$10,000.$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 $$1,500.$On October $1,2024,$ Pastina borrowed $$50,000$ 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.On March $1,2024,$ the company lent a supplier $$20,000,$ and a note was signed requiring principal and interest at $8\%$ to be paid on February $28,2025.$On April $1,2024,$ the company paid an insurance company $$6,000$ for a one$-$year fire insurance policy. The entire $$6,000$ was debited to prepaid insurance at the time of the payment.$$800$ of supplies remained on hand on December $31,2024.$The company received $$2,000$ from a customer in December for $1,500$ pounds of spaghetti to be delivered in January $2025.$ Pastina credited deferred sales revenue at the time cash was received.On December $1,2024,$ $$2,000$ rent was paid to the owner of the building. The payment represented rent for December $2024$ and January $2025$ at $$1,000$ per month. The entire amount was debited to prepaid rent at the time of the payment.