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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
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, 2024, appears below. Account Title Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Prepaid rent Debits $ 30,000 Credits 40,000 1,500 60,000 20,000 0 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 refenue 0 Cost of goods sold 70,000 Salaries expense 18,900 Rent expense 11,000 Depreciation expense Interest expense 0 Supplies expense 1,100 Insurance expense 0 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 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, 2024, were $1,500. 3. On October 1, 2024. Pastina borrowed $50.000 from a local bank and signed a note. The note requires interest to be
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