Required information Problem 2 4 (Algo) Accounting cycle adjusting entries through post closing trial balance LO2 4, 2 6, 2 7, 2 8 The following information applies to the questions displayed below 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 37,000 Accounts receivable 44,000 Supplies 3,500 Inventory 64,000 Notes receivable 24,000 Interest receivable 0 Prepaid rent 3,000 Prepaid insurance 10,000 Office equipment 96,000 Accumulated depreciation 36,000 Accounts payable 35,000 Salaries payable 0 Notes payable 54,000 Interest payable 0 Deferred sales revenue 4,000 Common stock 88,000 Retained earnings 38,500 Dividends 8,000 Sales revenue 166,000 Interest revenue 0 Cost of goods sold 90,000 Salaries expense 20,900 Rent expense 13,000 Depreciation expense 0 Interest expense 0 Supplies expense 3,100 Insurance expense 0 Advertising expense 5,000 Totals 421,500 421,500 Information necessary to prepare the year end adjusting entries appears below Depreciation on the office equipment for the year is $12,000 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 $1,800 On October 1, 2021, Pastina borrowed $54,000 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 On March 1, 2021, the company lent a supplier $24,000 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 $10,000 for a one year fire insurance policy The entire $10,000 was debited to prepaid insurance $1,070 of supplies remained on hand at December 31, 2021 A customer paid Pastina $4,000 in December for 1,750 pounds of spaghetti to be delivered in January 2022 Pastina credited deferred sales revenue On December 1, 2021, $3,000 rent was paid to the owner of the building The payment represented rent for December 2021 and January 2022 at $1,500 per month The entire amount was debited to prepaid rent rev 09 14 2019 QC CS 180268, 10 11 2019 QC CS 184133 Problem 2 4 (Algo) Parts 1 and 2 Required 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 )

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Required information Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [The following information applies to the questions displayed

Required information

Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8]

[The following information applies to the questions displayed below.]

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	37,000
Accounts receivable	44,000
Supplies	3,500
Inventory	64,000
Notes receivable	24,000
Interest receivable	0
Prepaid rent	3,000
Prepaid insurance	10,000
Office equipment	96,000
Accumulated depreciation		36,000
Accounts payable		35,000
Salaries payable		0
Notes payable		54,000
Interest payable		0
Deferred sales revenue		4,000
Common stock		88,000
Retained earnings		38,500
Dividends	8,000
Sales revenue		166,000
Interest revenue		0
Cost of goods sold	90,000
Salaries expense	20,900
Rent expense	13,000
Depreciation expense	0
Interest expense	0
Supplies expense	3,100
Insurance expense	0
Advertising expense	5,000
Totals	421,500	421,500

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

Depreciation on the office equipment for the year is $12,000.
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 $1,800.
On October 1, 2021, Pastina borrowed $54,000 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.
On March 1, 2021, the company lent a supplier $24,000 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 $10,000 for a one-year fire insurance policy. The entire $10,000 was debited to prepaid insurance.
$1,070 of supplies remained on hand at December 31, 2021.
A customer paid Pastina $4,000 in December for 1,750 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
On December 1, 2021, $3,000 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,500 per month. The entire amount was debited to prepaid rent.

rev: 09_14_2019_QC_CS-180268, 10_11_2019_QC_CS-184133

Problem 2-4 (Algo) Parts 1 and 2

Required:

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.)