milano company sells variety types of pasta to grosery chains as private label brands. The companys reporting year-end is Dec 31. The unadjusted trial balance as of Dec 31, 2021 appears below.
Account Title Credits Debit 37.400 4 On March 1, 2021, the company at supplier $23.800 and a note was signed requiring principal and interest to be paid on February 28, 2002 5. On April 1, 2021, the company paid an insurance company $7.900 for a two year fire insurance policy. The entire 57.900 was debited to prepaid insurance 6 $700 of supplies remained on hand at December 31, 2021 7. A customer pad Mano 51.100 in December for 1.614 pounds of spaghetti to be delivered in January 2022 Milano credited deferred sales revenue & On December 1, 2001. $2,200 rent was paid to the owner of the building. The payment representeret for December 2021 and laruary 2022, at $1,100 per month The entire amount was debited to preparent Inventory Notes receivable 63.800 23DO Prepaid insurance Office equipment 95.200 Required Prepare the necessary December 31, 2021, adjusting joumal entries Nccounts payabi 34,00 Interest payable Deferred sales revenue Common stock retained earnings 3.900 84,700 38.000 Interest revenue Cost of goods sold Salaries expense 89.000 20.800 12.900 Supplies expense murance expense Advertising expense Information necesary to prepare the year-end i ng strappears below 1. Derection on the office equipment for the years $11.500 2. Employe e s are pad twice a month, on the ind for sales came from the ot through the 15th, and on the hof the following month for researed from the oth through the end of the month Salaries came from December 16 through December 31, 2011 were $1,600 On October 1, 2021. Man borrowed 51.000 from a local bank and date. The note requires were to be paid on September The principiis in 10 years Credits Debits 37,400 43,800 3,400 63,800 23,800 2,200 7,900 95,200 35,700 34,800 53,800 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 3,900 84,700 38,000 7,800 165,000 89,000 20,800 12,900 3,000 4.900 415,900 415,900 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $11.900. 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 $1,600. 3. On October 1, 2021, Milano borrowed $53,800 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 $23,800 and a note was signed requiring principal and interest at 9% to be paid on February 28, 2022. 5. On April 1, 2021, the company paid an insurance company $7,900 for a two-year fire insurance policy. The entire $7,900 was debited to prepaid insurance. 6. $700 of supplies remained on hand at December 31, 2021. 7. A customer paid Milano $1,100 in December for 1,614 pounds of spaghetti to be delivered in January 2022. Milano credited deferred sales revenue. 8. On December 1, 2021, $2,200 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022, at $1,100 per month. The entire amount was debited to prepaid rent. Required: Prepare the necessary December 31, 2021, adjusting journal entries
