Problem 2-4 (Static) 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 | 30,000 | ||
Accounts receivable | 40,000 | ||
Supplies | 1,500 | ||
Inventory | 60,000 | ||
Notes receivable | 20,000 | ||
Interest receivable | 0 | ||
Prepaid rent | 2,000 | ||
Prepaid insurance | 6,000 | ||
Office equipment | 80,000 | ||
Accumulated depreciation | 30,000 | ||
Accounts payable | 31,000 | ||
Salaries payable | 0 | ||
Notes payable | 50,000 | ||
Interest payable | 0 | ||
Deferred sales revenue | 2,000 | ||
Common stock | 60,000 | ||
Retained earnings | 28,500 | ||
Dividends | 4,000 | ||
Sales revenue | 146,000 | ||
Interest revenue | 0 | ||
Cost of goods sold | 70,000 | ||
Salaries expense | 18,900 | ||
Rent expense | 11,000 | ||
Depreciation expense | 0 | ||
Interest expense | 0 | ||
Supplies expense | 1,100 | ||
Insurance expense | 0 | ||
Advertising expense | 3,000 | ||
Totals | 347,500 | 347,500 | |
Information necessary to prepare the year-end adjusting entries
appears below.
rev: 09_14_2019_QC_CS-180268
Problem 2-4 (Static) Part 5
1. Prepare closing entries. (Do not
round intermediate calculations. Round your final answers to
nearest whole dollar. If no entry is required for a particular
transaction, select "No journal entry required" in the first
account field.)
2. Prepare a post-closing trial balance. (Do not
round intermediate calculations. Round your final answers to
nearest whole dollar.)
3. Prepare an adjusted trial balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)
4. 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.)
Adjusting Entries
Account Titles | Debit | Credit | |
Depreciation Expense | $ 10,000 | ||
Accumulated Deprecition | $ 10,000 | ||
Salaries Expense | $ 1,500 | ||
Salaries Payable | $ 1,500 | ||
Interest Expense | $ 1,500 | =50000*12%*3/12 | |
Interest Payable | $ 1,500 | ||
Interest Receivable | $ 1,333 | =20000*8%*10/12 | |
Interest Revenue | $ 1,333 | ||
Insurance Expense | $ 4,500 | =6000*9/12 | |
Prepaid Insurance | $ 4,500 | ||
Supplies Expense | $ 700 | =1500-800 | |
Supplies | $ 700 | ||
No entry | |||
Rent Expense | $ 1,000 | ||
Prepaid Rent | $ 1,000 |
Adjusted Trial Balance | ||
Account Title | Debits | Credits |
Cash | $ 30,000 | |
Accounts receivable | $ 40,000 | |
Supplies | $ 800 | |
Inventory | $ 60,000 | |
Notes receivable | $ 20,000 | |
Interest receivable | $ 1,333 | |
Prepaid rent | $ 1,000 | |
Prepaid insurance | $ 1,500 | |
Office equipment | $ 80,000 | |
Accumulated depreciation | $ 40,000 | |
Accounts payable | $ 31,000 | |
Salaries payable | $ 1,500 | |
Notes payable | $ 50,000 | |
Interest payable | $ 1,500 | |
Deferred sales revenue | $ 2,000 | |
Common stock | $ 60,000 | |
Retained earnings | $ 28,500 | |
Dividends | $ 4,000 | |
Sales revenue | $ 146,000 | |
Interest revenue | $ 1,333 | |
Cost of goods sold | $ 70,000 | |
Salaries expense | $ 20,400 | |
Rent expense | $ 12,000 | |
Depreciation expense | $ 10,000 | |
Interest expense | $ 1,500 | |
Supplies expense | $ 1,800 | |
Insurance expense | $ 4,500 | |
Advertising expense | $ 3,000 | |
Totals | $ 361,833 | $ 361,833 |
Closing Entries
Account Titles | Debit | Credit |
Sales revenue | $ 146,000 | |
Interest revenue | $ 1,333 | |
Income Summary | $ 147,333 | |
(To close revenue accounts) | ||
Income Summary | $ 123,200 | |
Cost of goods sold | $ 70,000 | |
Salaries expense | $ 20,400 | |
Rent expense | $ 12,000 | |
Depreciation expense | $ 10,000 | |
Interest expense | $ 1,500 | |
Supplies expense | $ 1,800 | |
Insurance expense | $ 4,500 | |
Advertising expense | $ 3,000 | |
(To close expense accounts) | ||
Income Summary | $ 24,133 | |
Retained Earnings | $ 24,133 | |
(To close income summary account) | ||
Retained Earnings | $ 4,000 | |
Dividend | $ 4,000 | |
(To transfer dividend) |
Post-Closing Trial Balance | ||
Account Title | Debits | Credits |
Cash | $ 30,000 | |
Accounts receivable | $ 40,000 | |
Supplies | $ 800 | |
Inventory | $ 60,000 | |
Notes receivable | $ 20,000 | |
Interest receivable | $ 1,333 | |
Prepaid rent | $ 1,000 | |
Prepaid insurance | $ 1,500 | |
Office equipment | $ 80,000 | |
Accumulated depreciation | $ 40,000 | |
Accounts payable | $ 31,000 | |
Salaries payable | $ 1,500 | |
Notes payable | $ 50,000 | |
Interest payable | $ 1,500 | |
Deferred sales revenue | $ 2,000 | |
Common stock | $ 60,000 | |
Retained earnings | $ 48,633 | |
Dividends | ||
Sales revenue | ||
Interest revenue | ||
Cost of goods sold | ||
Salaries expense | ||
Rent expense | ||
Depreciation expense | ||
Interest expense | ||
Supplies expense | ||
Insurance expense | ||
Advertising expense | ||
Totals | $ 234,633 | $ 234,633 |
Problem 2-4 (Static) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [The...
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 34,100 Accounts receivable 42,000 Supplies 2,500 Inventory 62,000 Notes receivable 22,000 Interest receivable 0 Prepaid rent 1,900 Prepaid...
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 34,100 Accounts receivable 42,000 Supplies 2,500 Inventory 62,000 Notes receivable 22,000 Interest receivable 0 Prepaid rent 1,900 Prepaid...
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...
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 34,100 Accounts receivable 42,000 Supplies 2,500 Inventory 62,000 Notes receivable 22,000 Interest receivable 0 Prepaid rent 1,900 Prepaid...
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 36,700 Accounts receivable 43,800 Supplies 3,400 Inventory 63,800 Notes receivable 23,800 Interest receivable 0 Prepaid rent...
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...
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 34,100 Accounts receivable 42,000 Supplies 2,500 Inventory 62,000 Notes receivable 22,000 Interest receivable 0 Prepaid rent 1,900 Prepaid...
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...
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 36,700 Accounts receivable 43,800 Supplies 3,400 Inventory 63,800 Notes receivable 23,800 Interest receivable 0 Prepaid rent...
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 36,700 Accounts receivable 43,800 Supplies 3,400 Inventory 63,800 Notes receivable 23,800 Interest receivable 0 Prepaid rent...