1.Prepare the T Accounts:

Credits Debits 34,900 42,600 2,800 62,600 22,600 0 2,300 8,600 90,400 33,900 33,600 0 52,600 0 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 eamings Dividends Sales revenue Interest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Advertising expense Totals 3,300 78,200 35,000 6,600 159,000 0 83,000 20,200 12,300 0 0 2,400 0 4,300 395,600 395,600 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $11,300. Credit General Journal Depreciation expenses Debit 11300 Accumilated Depreciation 11300 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 $1,400. Salaries Expenses Salaries payable 1400 1400 3. On October 1, 2021, Pastina borrowed $52,600 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. Interest Expenses Interest payable 1578 1578 4. On March 1, 2021, the company lent a supplier $22,600 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022 1695 Interest Receivable Interest Revenue 1695 5. On April 1, 2021, the company paid an insurance company $8,600 for a one-year fire insurance policy. The entire $8,600 was debited to prepaid insurance. 6450 6. $860 of supplies remained on hand at December 31, 2021. Insurance expenses Prepaid insurance Supplies expenses Supplies 6450 940 940 7. A customer paid Pastina $3,300 in December for 1,400 pounds of spaghetti to be delivered in January 2022 Pastina credited deferred sales revenue. No entry 8. On December 1, 2021, $2,300 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,150 per month. The entire amount was debited to prepaid rent. Rent expenses Prepaid rent 1150 1150 Cost of Goods Sold Salaries Expense Beg. bal. Beg. bal. End. bal. End. bal. Rent Expense Beg. bal. Depreciation Expense Beg. bal. 0 1 11,300 End. bal. End. bal. Interest Expense Supplies Expense Beg. bal. Beg. bal. End. bal. End. bal. Insurance Expense Advertising Expense Beg. bal. Beg. bal. End. bal. End. bal