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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
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 36,100 Accounts receivable 43,400 Supplies 3,200 Inventory 63,400 Notes receivable 23,400 Interest receivable 0 Prepaid rent 2,700 Prepaid insurance 9,400 office equipment 93,600 Accumulated depreciation 35,100 Accounts payable 34,400 salaries payable 0 Notes payable 53,400 Interest payable 0 Deferred sales revenue 3,700 Common stock 83,800 Retained earnings 37,000 Dividends 7,400 Sales revenue 163,000 Interest revenue 0 Cost of goods sold 87,000 Salaries expense 20,600 Rent expense 12,700 Depreciation expense 0 Interest expense Supplies expense 2,800 Insurance expense 0 Advertising expense 4,200 Totals 410,400 410,400 0 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $11,700. 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, 2021, were $1,650. 3. On October 1, 2021. Pastina borrowed $53,400 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. 4. On March 1, 2021, the company lent a supplier $23,400 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022. 5. On April 1, 2021, the company paid an insurance company $9,400 for a one-year fire insurance policy. The entire $9.400 was debited to prepaid insurance. 6. $980 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $3,700 in December for 1,600 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. 8. On December 1, 2021, $2,700 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,350 per month. The entire amount was debited to prepaid rent. 4. Prepare an income statement and a statement of shareholders' equity for the year ended December 31, 2021, and a classified balance sheet as of December 31, 2021. Assume that no common stock was issued during the year and that $7,400 in cash dividends were paid to shareholders during the year, Complete this question by entering your answers in the tabs below. Income Statement Statement of SE Balance Sheet Prepare the income statement for the year ended December 31, 2021. (Other expenses should be indicated with a minus sign.) PASTINA COMPANY Income Statement For the Year Ended December 31, 2021 0 0 0 0 $ 0 Income Statement Statement of SE > Income Statement Statement of SE Balance Sheet Prepare the statement of shareholders' equity for the year ended December 31, 2021. PASTINA COMPANY Statement of Shareholders' Equity For the Year Ended December 31, 2021 Common Stock Retained Earnings Total Shareholders' Equity Balance at January 1, 2021 Balance at December 31, 2021 Prepare the classified balance sheet for the year ended December 31, 2021. (Amounts to be deducted should b a minus sign.) PASTINA COMPANY Balance Sheet At December 31, 2021 Assets 0 0 0 Liabilities and Shareholders' Equity Liabilities and Shareholders' Equity + 0 0 $ 0
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