Question

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 33,800 42,000 2,500 62,000 22,000 2,200 7,000 88,000 33,000 33,000 0 52,000 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 3,000 73,000 33,500 6,000 156,000 80,000 19,900 12,000 0 2,100 0 4,000 383,500 383,500

Answer 1

Date	Account title	Debit	credit
1	Depreciation expense	11000
	Accumulated depreciation		11000
2	salaries expense	1600
	salaries payable		1600
3	Interest expense	1560
	Interest payable		1560
	[Being interest accrued for 3 months (1Oct-31Dec ) 52000*.12*3/12=1560]
4	Interest receivable	1467
	Interest revenue		1467
	[Being interest accrued for 10 months (1Mar-31Dec) 22000*.08*10/12]
5	Insurance expense	2625
	prepaid insurance		2625
	[Being insurance expired for 9 months out of 2 years or 24 months (1April -31Dec):7000*9/24= 2625]
6	supplies expense	1800
	supplies		1800
	[being supplies used :2500 balance in un-adjusted trial balance - 700 at end ]
7	cash	3000
	Deferred sales revenue		3000
8	Rent expense	1100
	prepaid rent		1100
	[Being rent expired for month od December ]