Question

Required Information [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. Credits Debits 35. See 43, eee 3,800 63,000 23,800 2,5ee 9, eee 92,000 34,5ee 34, eee 53,888 Account Title Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Interest payable Deferred sales revenue Common stock Retained earnings Dividends Sales revenue Interest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Advertising expense Totals 3,500 81,899 36,880 7, eee 161,800 85, eee 20,400 12,500 2,600 4,500 493,800 483.ee Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $11,500. 2. Employee salarles are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th he following month for salaries earned from the 16th through the end of the month. Salarles earned from December 16 through December 31, 2021, were $1,550. 3. On October 1, 2021, Pastina borrowed $53,000 from a local bank and signed a note. The note requires Interest to be pald annually on September 30 at 12%. The principal is due in 10 years. 4. On March 1, 2021, the company lent a supplier $23,000 and a note was signed requiring principal and Interest at 8% to be pald on February 28, 2022 5. On April 1, 2021, the company paid an Insurance company $9,000 for a one-year fire Insurance policy. The entire $9,000 was debited to prepaid Insurance. 6. $920 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $3,500 in December for 1,500 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. 8. On December 1, 2021, $2,500 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,250 per month. The entire amount was debited to prepaid rent.

Answer 1

Adjustments Credit Debit Unadjuted Trial Balance Debit Credit $ 35,500 $ 43,000 $ 3,000 63,000 23,000 $ 2,080 $ $ 1,533 2,500 9,000 92,000 1,250 6,750 $ $ $ 11,500 $ $ 34,500 34,000 $ 1,550 $ 53,000 Items Cash Accounts receivable Supplies Inventory Note receivable Interest receivable Prepaid rent Prepaid insurance Equipment Accumulated depreciation-equipment Accounts payable Salaries payable Note payable Interest payable Deferred revenue Common stock Retained earnings Dividends Sales revenue Interest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Advertisement Expense $ $ 1,590 . Adjuted Trial Balance Debit Credit $ 35,500 43,000 $ 920 63,000 23,000 1,533 $ 1,250 $ 2,250 $ 92,000 $ 46,000 $ 34,000 $ 1,550 $ 53,000 $ 1,590 $ 3,500 $ 81,000 $ 36,000 $ 7,000 $ 161,000 $ 1,533 $ 85,000 $ 21,950 13,750 11,500 1,590 4,680 6,750 $ 4,500 $ $ 3,500 81,000 36,000 $ 7,000 $ 161,000 $ . $ 1,533 $ $ $ 85,000 20,400 12,500 $ $ $ $ 1,550 1,250 11,500 1,590 2,080 6,750 $ 2,600 $ 4,500 Totals $ 403,000 $ 403,000 $ 26,253 $ 26,253 $ 419,173 $ 419,173 Statement of shareholders equity Total Retained Shareholder's Common Stock Earnings equity $ 81,000 $ 36,000 $ 117,000 $ 12,813 $ 12,813 $ (7,000) $ (7,000) $ 81,000 $ 41,813 $ 122,813 Opening Balance Add:Net Income Less:dividends Closing Bal.

Income Statement 161,000 (85,000) 76,000 $ Sales Revenue Cost of good sold Gross Profit Operating Expenses Cost of goods sold Salaries expense Rent expense Depreciation expense Supplies expense Insurance expense Advertisement Expense Total Operating Expenses $ 21,950 13,750 11,500 4,680 6,750 4,500 | $ (63.131 $ 12,870 Operating Income Other income(expense) Interest revenue Interest Expense $ 1,533 (1,590)| $ (57) Net Income $ 12,813

Balance Sheet $ $ $ $ Current Assets Cash Accounts receivable Supplies Inventory Note receivable Interest receivable Prepaid rent Prepaid insurance Total Current Assets 35,500 43,000 920 63,000 23,000 1,533 1,250 2,250 $ $ 170,453 Equipment Less:Accumulated depreciation-equipment $ $ 92,000 (46,000) $ $ 46,000 216,453 Total Assets Current Liabilities I I Accounts payable Salaries payable Interest payable Deferred revenue Total Current Liabilities $ $ $ 34,000 1.550 1,590 3,500 $ 40,640 non current Liabilities Note payable $ 53,000 Stockholder's Equity Common Stock Retained Earnings Total Shareholder's equity Total liabiities & Shareholder's equity $ $ 81,000 41,813 $ $ 122,813 216,453

$ 11,500 1 Depriciation Expense Acc. Dep-office equipment $ 11,500 $ 1,550 2 Salaries & Wages expense Salaries & wages payable $ 1,550 $ 1,590 3 Interest expense Interest payable (53000*12%*3/12) $ 1,590 $ 1,533 4 Interest receivable Interest revenue (23000*8%*10/12) $ 1,533 $ 6,750 5 Prepaid Insurance Insurance Expense 9000/12*9 $ 6,750 $ 2,080 6 Supplies Expense Supplies (3000-920) $ 2,080 7 No entry $ 1,250 8 Rent Expense Prepaid rent $ 1,250