Question
[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 fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2016, appears below. |
Account Title | Debits | Credits |
Cash | 40,950 | |
Accounts receivable | 43,000 | |
Supplies | 1,100 | |
Inventory | 63,000 | |
Note receivable | 16,800 | |
Interest receivable | 0 | |
Prepaid rent | 1,200 | |
Prepaid insurance | 0 | |
Office equipment | 64,000 | |
Accumulated depreciationoffice equipment | 24,000 | |
Accounts payable | 22,000 | |
Salaries and wages payable | 0 | |
Note payable | 46,800 | |
Interest payable | 0 | |
Deferred revenue | 0 | |
Common stock | 60,000 | |
Retained earnings | 16,000 | |
Sales revenue | 163,000 | |
Interest revenue | 0 | |
Cost of goods sold | 73,350 | |
Salaries and wages expense | 15,600 | |
Rent expense | 6,600 | |
Depreciation expense | 0 | |
Interest expense | 0 | |
Supplies expense | 600 | |
Insurance expense | 3,400 | |
Advertising expense | 2,200 | |
Totals | 331,800 | 331,800 |
Information necessary to prepare the year-end adjusting entries appears below. | |
1. | Depreciation on the office equipment for the year is $8,000. |
2. | Employee salaries and wages are paid twice a month, on the 22nd for salaries and wages earned from the 1st through the 15th, and on the 7th of the following month for salaries and wages earned from the 16th through the end of the month. Salaries and wages earned from December 16 through December 31, 2016, were $900. |
3. | On October 1, 2016, Pastina borrowed $46,800 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. |
4. | On March 1, 2016, the company lent a supplier $16,800 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2017. |
5. | On April 1, 2016, the company paid an insurance company $3,400 for a two-year fire insurance policy. The entire $3,400 was debited to insurance expense. |
6. | $560 of supplies remained on hand at December 31, 2016. |
7. | A customer paid Pastina $1,080 in December for 900 pounds of spaghetti to be delivered in January 2017. Pastina credited sales revenue. |
8. | On December 1, 2016, $1,200 rent was paid to the owner of the building. The payment represented rent for December 2016 and January 2017, at $600 per month. |
2.
value: 3.00 points
Required information
Required: |
1. & 2. | Post the opening 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.) |
Information necessary to prepare the year-end adjusting entries appears below. | |||||||||||||||||||||||||
1. | Depreciation on the office equipment for the year is $8,000. | ||||||||||||||||||||||||
2. | Employee salaries and wages are paid twice a month, on the 22nd for salaries and wages earned from the 1st through the 15th, and on the 7th of the following month for salaries and wages earned from the 16th through the end of the month. Salaries and wages earned from December 16 through December 31, 2016, were $900. | ||||||||||||||||||||||||
3. | On October 1, 2016, Pastina borrowed $46,800 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. | ||||||||||||||||||||||||
4. | On March 1, 2016, the company lent a supplier $16,800 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2017. | ||||||||||||||||||||||||
5. | On April 1, 2016, the company paid an insurance company $3,400 for a two-year fire insurance policy. The entire $3,400 was debited to insurance expense. | ||||||||||||||||||||||||
6. | $560 of supplies remained on hand at December 31, 2016. | ||||||||||||||||||||||||
7. | A customer paid Pastina $1,080 in December for 900 pounds of spaghetti to be delivered in January 2017. Pastina credited sales revenue. | ||||||||||||||||||||||||
8. | On December 1, 2016, $1,200 rent was paid to the owner of the building. The payment represented rent for December 2016 and January 2017, at $600 per month.
References eBook & Resources WorksheetLearning Objective: 02-03 Post the effects of journal entries to general ledger accounts and prepare an unadjusted trial balance.Learning Objective: 02-06 Describe the four basic financial statements. Difficulty: 3 HardLearning Objective: 02-05 Record adjusting journal entries in general journal format, post entries, and prepare an adjusted trial balance.Learning Objective: 02-07 Explain the closing process. Check my work 3. value: 3.00 points Required information
References eBook & Resources WorksheetLearning Objective: 02-03 Post the effects of journal entries to general ledger accounts and prepare an unadjusted trial balance.Learning Objective: 02-06 Describe the four basic financial statements. Difficulty: 3 HardLearning Objective: 02-05 Record adjusting journal entries in general journal format, post entries, and prepare an adjusted trial balance.Learning Objective: 02-07 Explain the closing process. Check my work 4. value: 3.00 points Required information
rev: 01_28_2015_QC_CS-5258 References eBook & Resources Financial StatementsLearning Objective: 02-03 Post the effects of journal entries to general ledger accounts and prepare an unadjusted trial balance.Learning Objective: 02-06 Describe the four basic financial statements. Difficulty: 3 HardLearning Objective: 02-05 Record adjusting journal entries in general journal format, post entries, and prepare an adjusted trial balance.Learning Objective: 02-07 Explain the closing process. Check my work 5. value: 3.00 points Required information
References eBook & Resources General JournalLearning Objective: 02-03 Post the effects of journal entries to general ledger accounts and prepare an unadjusted trial balance.Learning Objective: 02-06 Describe the four basic financial statements. Difficulty: 3 HardLearning Objective: 02-05 Record adjusting journal entries in general journal format, post entries, and prepare an adjusted trial balance.Learning Objective: 02-07 Explain the closing process. Check my work 6. value: 3.00 points Required information
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