Problem 2 3 (Algo) Adjusting entries LO2 6 Pastina Company sells various types of pasta to grocery chains as private label brands The companys reporting year end is December 31 The unadjusted trial balance as of December 31, 2021, appears below Account Title Debits Credits Cash 30,400 Accounts receivable 40,400 Supplies 1,700 Inventory 60,400 Notes receivable 20,400 Interest receivable 0 Prepaid rent 2,400 Prepaid insurance 6,200 Office equipment 81,600 Accumulated depreciation 30,600 Accounts payable 31,400 Salaries payable 0 Notes payable 50,400 Interest payable 0 Deferred sales revenue 2,200 Common stock 62,600 Retained earnings 29,500 Dividends 4,400 Sales revenue 148,000 Interest revenue 0 Cost of goods sold 72,000 Salaries expense 19,100 Rent expense 11,200 Depreciation expense 0 Interest expense 0 Supplies expense 1,300 Insurance expense 0 Advertising expense 3,200 Totals 354,700 354,700 Information necessary to prepare the year end adjusting entries appears below Depreciation on the office equipment for the year is $10,200 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 $1,400 On October 1, 2021, Pastina borrowed $50,400 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 $20,400 and a note was signed requiring principal and interest at 9 to be paid on February 28, 2022 On April 1, 2021, the company paid an insurance company $6,200 for a one year fire insurance policy The entire $6,200 was debited to prepaid insurance $900 of supplies remained on hand at December 31, 2021 A customer paid Pastina $2,200 in December for 1,512 pounds of spaghetti to be delivered in January 2022 Pastina credited deferred sales revenue On December 1, 2021, $2,400 rent was paid to the owner of the building The payment represented rent for December 2021 and January 2022, at $1,200 per month The entire amount was debited to prepaid rent Required Prepare the necessary December 31, 2021, adjusting journal entries (If no entry is required for a transaction event, select No journal entry required in the first account field Do not round intermediate calculations Round your final answers to nearest whole dollar amount )

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Problem 2-3 (Algo) Adjusting entries [LO2-6] Pastina Company sells various types of pasta to grocery chains as private label brands. The companys reporting year-end is

Problem 2-3 (Algo) Adjusting entries [LO2-6]

Pastina Company sells various types of pasta to grocery chains as private label brands. The companys reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below.

Account Title	Debits		Credits
Cash		30,400
Accounts receivable		40,400
Supplies		1,700
Inventory		60,400
Notes receivable		20,400
Interest receivable		0
Prepaid rent		2,400
Prepaid insurance		6,200
Office equipment		81,600
Accumulated depreciation				30,600
Accounts payable				31,400
Salaries payable				0
Notes payable				50,400
Interest payable				0
Deferred sales revenue				2,200
Common stock				62,600
Retained earnings				29,500
Dividends		4,400
Sales revenue				148,000
Interest revenue				0
Cost of goods sold		72,000
Salaries expense		19,100
Rent expense		11,200
Depreciation expense		0
Interest expense		0
Supplies expense		1,300
Insurance expense		0
Advertising expense		3,200
Totals		354,700		354,700

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

Depreciation on the office equipment for the year is $10,200.
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 $1,400.
On October 1, 2021, Pastina borrowed $50,400 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 $20,400 and a note was signed requiring principal and interest at 9% to be paid on February 28, 2022.
On April 1, 2021, the company paid an insurance company $6,200 for a one-year fire insurance policy. The entire $6,200 was debited to prepaid insurance.
$900 of supplies remained on hand at December 31, 2021.
A customer paid Pastina $2,200 in December for 1,512 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
On December 1, 2021, $2,400 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022, at $1,200 per month. The entire amount was debited to prepaid rent.

Required: Prepare the necessary December 31, 2021, adjusting journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)