Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Credits Debits 30,000 40,000 1,500 60,000 20,000 2,000 6,000 8e, eee 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 Advertisinst expense 3e, ce 31,820 e 50,000 e 2,600 60,000 28,500 4,000 146,000 e 70,000 18,900 11,000 1.100 ,000 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 $1000 per month. The entire amount was debited to prepaid rent nccounts Receivablo Beg bal Beg. bal. End bal End, bal Prepaid Rent Prepaid Insurance Beg bal Beg. bal End, bal End, bal Supplies Inventory Beg bal Beg bal Notes Receivable Office Equipment Beg. bal. Beg bal End, bal End, bal. Interest Receivable Accumulated depreciation Beg. bal Beg bal End bal End, bal. Accounts Payable Beg bal Salaries payable Beg bal Notes Payable Interest Payable Beg. bal Beg bal. End, bal End, bal Deferred sales revenue Common Stock Beg bal Beg bal End bal End, bal Retained Earnings Bog bal Dividends Beg bat Sales revenue Interest revenue Beg. bal Beg. bal. End, bal End, bal Cost of goods sold Salaries expense Beg bal. Beg bal. End bal End, bal Rent expense Depreciation expense Beg bal Beg bal Interest expense Supplies expense Beg bal. Beg. bal End, bal End, bal Insurance expense Advertising expense Beg. bal Beg bal End: bal. End bal
