Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting
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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 balance as of December 31, 2021, appears below.
Account Title | Debits | Credits | ||
Cash | 32,300 | |||
Accounts receivable | 40,800 | |||
Supplies | 1,900 | |||
Inventory | 60,800 | |||
Notes receivable | 20,800 | |||
Interest receivable | 0 | |||
Prepaid rent | 1,300 | |||
Prepaid insurance | 6,800 | |||
Office equipment | 83,200 | |||
Accumulated depreciation | 31,200 | |||
Accounts payable | 31,800 | |||
Salaries payable | 0 | |||
Notes payable | 50,800 | |||
Interest payable | 0 | |||
Deferred sales revenue | 2,400 | |||
Common stock | 65,600 | |||
Retained earnings | 30,500 | |||
Dividends | 4,800 | |||
Sales revenue | 150,000 | |||
Interest revenue | 0 | |||
Cost of goods sold | 74,000 | |||
Salaries expense | 19,300 | |||
Rent expense | 11,400 | |||
Depreciation expense | 0 | |||
Interest expense | 0 | |||
Supplies expense | 1,500 | |||
Insurance expense | 0 | |||
Advertising expense | 3,400 | |||
Totals | 362,300 | 362,300 | ||
Information necessary to prepare the year-end adjusting entries appears below.
- Depreciation on the office equipment for the year is $10,400.
- 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 $950.
- On October 1, 2021, Pastina borrowed $50,800 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.
- On March 1, 2021, the company lent a supplier $20,800 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.
- On April 1, 2021, the company paid an insurance company $6,800 for a one-year fire insurance policy. The entire $6,800 was debited to prepaid insurance.
- $590 of supplies remained on hand at December 31, 2021.
- A customer paid Pastina $2,400 in December for 950 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
- On December 1, 2021, $1,300 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $650 per month. The entire amount was debited to prepaid rent.
1. & 2. Post the unadjusted balances and adjusting entires into the appropriate t-accounts. (Enter the number of the adjusting entry in the column next to the amount. Do not round intermediate calculations. Round your final answers to nearest whole dollar.)
Cash Accounts Receivable 40,800 Beg. bal. Beg. bal. End. bal. End. bal. 40,800 Prepaid Rent Prepaid Insurance Beg. bal. Beg. bal. 8. End. bal. End. bal. Supplies Inventory Beg. bal Beg. bal. 6. End. bal. End. bal. Note 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 Salaries Payable Beg. bal. Beg. bal. End. bal. End, bal Note 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 Dividends Beg bal. Beg bal. End. bal. End. bal. 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. End, bal. End, 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
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