Pastina Company manufactures and sells various types of pasta to grocery chains as private label brands. The companys fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2013, appears below.

Account Title	Debits			Credits
Cash		35,000
Accounts receivable		45,000
Supplies		1,400
Inventory		65,000
Note receivable		25,000
Interest receivable		0
Prepaid rent		2,400
Prepaid insurance		0
Equipment		96,000
Accumulated depreciationequipment					36,000
Accounts payable					36,000
Wages payable					0
Note payable					55,000
Interest payable					0
Unearned revenue					0
Common stock					65,000
Retained earnings					43,500
Sales revenue					153,000
Interest revenue					0
Cost of goods sold		75,000
Wage expense		19,400
Rent expense		13,200
Depreciation expense		0
Interest expense		0
Supplies expense		1,000
Insurance expense		6,600
Advertising expense		3,500
Totals		388,500			388,500

Information necessary to prepare the year-end adjusting entries appears below.

1.	Depreciation on the equipment for the year is $12,000.
2.	Employee wages are paid twice a month, on the 22nd for wages earned from the 1st through the 15th, and on the 7th of the following month for wages earned from the 16th through the end of the month. Wages earned from December 16 through December 31, 2013, were $1,400.
3.	On October 1, 2013, Pastina borrowed $55,000 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, 2013, the company lent a supplier $25,000 and a note was signed requiring principal and interest at 9% to be paid on February 28, 2014.
5.	On April 1, 2013, the company paid an insurance company $6,600 for a two-year fire insurance policy. The entire $6,600 was debited to insurance expense.
6.	$900 of supplies remained on hand at December 31, 2013.
7.	A customer paid Pastina $2,500 in December for 1,650 pounds of spaghetti to be manufactured and delivered in January 2014. Pastina credited sales revenue.
8.	On December 1, 2013, $2,400 rent was paid to the owner of the building. The payment represented rent for December and January 2014, at $1,200 per month.

Required:

Prepare the necessary December 31, 2013, adjusting journal entries

Journal Entry Worksheet

Depreciation on the equipment for the year is $12,000.

Employee wages are paid twice a month, on the 22nd for wages earned from the 1st through the 15th, and on the 7th of the following month for wages earned from the 16th through the end of the month. Wages earned from December 16 through December 31, 2013, were $1,400.

On October 1, 2013, Pastina borrowed $55,000 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.

On March 1, 2013, the company lent a supplier $25,000 and a note was signed requiring principal and interest at 9% to be paid on February 28, 2014.

On April 1, 2013, the company paid an insurance company $6,600 for a two-year fire insurance policy. The entire $6,600 was debited to insurance expense.

$900 of supplies remained on hand at December 31, 2013.

A customer paid Pastina $2,500 in December for 1,650 pounds of spaghetti to be manufactured and delivered in January 2014. Pastina credited sales revenue.

On December 1, 2013, $2,400 rent was paid to the owner of the building. The payment represented rent for December and January 2014, at $1,200 per month.