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 33,600 Accounts receivable 41,800 Supplies 2,400 Inventory 61,800 Notes receivable 21,800 Interest receivable 0 Prepaid rent 2,000 Prepaid insurance 6,900 Office equipment 87,200 Accumulated depreciation 32,700 Accounts payable 32,800 Salaries payable 0 Notes payable 51,800 Interest payable 0 Deferred sales revenue 2,900 Common stock 71,700 Retained earnings 33,000 Dividends 5,800 Sales revenue 155,000 Interest revenue 0 Cost of goods sold 79,000 Salaries expense 19,800 Rent expense 11,900 Depreciation expense 0 Interest expense 0 Supplies expense 2,000 Insurance expense 0 Advertising expense 3,900 Totals 379,900 379,900 Information necessary to prepare the year end adjusting entries appears below Depreciation on the office equipment for the year is $10,900 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 On October 1, 2021, Pastina borrowed $51,800 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 $21,800 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 $6,900 for a two year fire insurance policy The entire $6,900 was debited to prepaid insurance $800 of supplies remained on hand at December 31, 2021 A customer paid Pastina $2,900 in December for 1,554 pounds of spaghetti to be delivered in January 2022 Pastina credited deferred sales revenue 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 $1,000 per month The entire amount was debited to prepaid rent

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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		33,600
Accounts receivable		41,800
Supplies		2,400
Inventory		61,800
Notes receivable		21,800
Interest receivable		0
Prepaid rent		2,000
Prepaid insurance		6,900
Office equipment		87,200
Accumulated depreciation				32,700
Accounts payable				32,800
Salaries payable				0
Notes payable				51,800
Interest payable				0
Deferred sales revenue				2,900
Common stock				71,700
Retained earnings				33,000
Dividends		5,800
Sales revenue				155,000
Interest revenue				0
Cost of goods sold		79,000
Salaries expense		19,800
Rent expense		11,900
Depreciation expense		0
Interest expense		0
Supplies expense		2,000
Insurance expense		0
Advertising expense		3,900
Totals		379,900		379,900

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

Depreciation on the office equipment for the year is $10,900.
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.
On October 1, 2021, Pastina borrowed $51,800 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 $21,800 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 $6,900 for a two-year fire insurance policy. The entire $6,900 was debited to prepaid insurance.
$800 of supplies remained on hand at December 31, 2021.
A customer paid Pastina $2,900 in December for 1,554 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
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 $1,000 per month. The entire amount was debited to prepaid rent.