Company 1 4 Adjusting Enteries Trans. Particulars 1 Depreciation Expense Accum.Depre- Off.Equip. (Depreciation recorded) Debit in $ Credit in $ 10800 10800 Depreciation Expense 10800 Bal. . 10800 Interest Receivable 1440 Bal. 1440 10800 1440 10800 1440 Interest Revenue Accum.Depre-Off.Equip. Bal. 32400 2 1150 4 1440 Salaries Expense Salaries Payable (Salaries accrued) 1150 Bal. 43200 1 10800 Bal. 1440) 1440 43200 43200 1440 3 1548 Interest Expense Interest Payable (Interest accrued) 51600 x 12% x 3/12 1548 Bal. 2 Salaries Expense 19700 1150 Bal. 20850 Bal. 6 Supplies Expense 1900 1590 Bal. 3490 20850 3490 20850 3490 4 1440 Interest Receivable Interest Revenue (Interest accrued) 21600 x 8% x 10/12 1440 Salaries Payable 2. 1150 1150 Bal. Supplies 2300 6 Bal. 1590 710 Bal. 5 5700 1150 1150 2300 2300 Insurance Expense Prepaid Insurance (Insurance expired) 7600 x 9/12 5700 3 Bal. Interest Expense 1548 Bal. 1548 Rent Expense 118001 850 Bal. 12650 6 1590 8 12650 Supplies Expense Supplies (Supplies used) 2300 - 710 1548 1548 1590 12650 7 No entry Interest Payable 3 1548 1548 Bal. Prepaid Rent 1700 8 Bal. 850 Bal. 850 8 850 1548 1548 1548 1700 1700 Rent Expense Prepaid Rent (Rent expired) 850 Credits Debits 33,500 41,600 2,300 61,600 21,600 1,700 7,600 86,400 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 earnings Dividends Sales revenue Interest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Advertising expense Totals 32,400 32,600 0 51,600 0 2,800 71,200 32,500 5,600 154,000 78,000 19,700 11,800 0 1,900 0 3,800 377,100 377,100 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $10,800. 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 $1,150. 3. On October 1, 2021, Pastina borrowed $51,600 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. 4. On March 1, 2021, the company lent a supplier $21,600 and a note was signed requiring principal and interest at 8% 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 insurance policy. The entire $7,600 was debited to prepaid insurance. 6. $710 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $2,800 in December for 1,150 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. 8. On December 1, 2021, $1,700 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $850 per month. The entire amount was debited to prepaid rent. 3. Prepare an adjusted trial balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)
