Credits Debits 30,000 40,000 1,500 60,000 20,000 0 2,000 6,000 80,000 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 30,000 31,000 0 50,000 0 2,000 60,000 28,500 4,000 146,000 0 70,000 18,900 11,000 0 0 1,100 0 3,000 347,500 347,500 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $10,000. 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 $1,500. 3. On October 1, 2021, 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. 4. On March 1, 2021, the company lent a supplier $20,000, 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 $6,000 for a one-year fire insurance policy. The entire $6,000 was debited to prepaid insurance. 6. $800 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $2,000 in December for 1,500 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. 8. On December 1, 2021, $2,000 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,000 per month. The entire amount was debited to prepaid rent. Required: 1. & 2. Post the unadjusted balances and adjusting entires into the appropriate t-accounts. (Enter the number of the adjusting entry in the column next to the amount. Do not round intermediate calculations. Round your final answers to nearest whole dollar.) X Answer is not complete. Cash Accounts Receivable Beg. bal. 30,000 Beg. bal. 40,000 End. bal. 30,000 End. bal. 40,000 Prepaid Rent Prepaid Insurance Beg. bal. 2,000 Beg. bal. 6,000 1,000 8. 2,250 X 5 End. bal. 1,000 End. bal. 3,750 1,000 3,750 bal. bal. Inventory Beg. bal. Supplies 1,500 Beg. bal. 60,000 700 6. End bal. 800 End. bal. 60,000 Notes Receivable Office Equipment Beg bal. 20,000 Beg. bal. 80,000 End. bal. 20,000 End. bal. 80,000 Interest Receivable Accumulated depreciation Interest Receivable Accumulated depreciation 30,000 Beg bal. 4 Beg bal. 1. 1,333 10,000 End. bal. 1,333 End. bal. 40,000 Accounts Payable Salaries payable Beg. bal. 31,000 Beg bal. 1,500 2. End. bal. 31,000 End. bal. 1,500 Notes Payable Interest Payable Beg SO Beg Notes Payable Interest Payable Beg. bal. 50,000 Beg. bal. 1,500 3. End. bal. 50,000 End. bal. 1,500 Deferred sales revenue Common Stock Beg 2,000 Beg. bal. 60,000 bal. 7. 0 End. bal. 2,000 End. bal. 60,000 Retained Earnings 28,500 Beg Beg Dividends 4,000 bal. bal. End. bal. 28,500 End. bal. 4,000 Sales revenue Interest revenue Beg bal. 146,000 Beg. bal. 0 0 1,333 4. End. bal. 146,000 End. bal. 1,333 Salaries expense Beg. bal. Cost of goods sold 70,000 Beg bal. 18,900 2. 1,500 End. bal 70,000 End. bal. 20,400 Rent expense Depreciation expense 11,000 0 Beg. bal. 8. Beg. bal. 1. 1,000 10,000 End. bal. 12,000 End. bal. 10,000 Interest expense 0 Beg. bal 3. Beg. bal. 6. Supplies expense 1,100 700 1,500 End. bal 1,500 End. bal. 1,800 Insurance expense Advertising expense Beg. bal. 5. Beg. bal. 3,000 2,250 End. bal 2,250 End. bal. 3,000 X Answer is complete but not entirely correct. PASTINA COMPANY Adjusted Trial Balance December 31, 2018 Account Title Debits Credits Cash $ Accounts receivable Supplies Inventory Notes receivable Interest receivable Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable 30,000 40,000 800 60,000 20,000 1,333 1,000 3,750 80,000 $ 40,000 31,000 28,500 4,000 146,000 1,333 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 70,000 20,400 12,000 10,000 1,500 1,800 2,250 3,000 $ 361,833 $ 361,833