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P 2-3 Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting Adjusting entries year-end is December 31.

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P 2-3 Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting Adjusting entries year-end is December 31. The unadjusted trial bulance as of December 31, 2021, appears below. L02-6 Account Title Debits Credits Cash 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 Supplies expense 1,100 Insurance expense Advertising expense 3,000 Totals 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 Ist 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 inter- est at 8% to be paid on February 28, 2022. 5. On April 1, 2021, the company paid an insurance company $6,000 for a two-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: Prepare the necessary December 31, 2021, adjusting journal entries

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