Question

Help Save& Exit Submit Check my work 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, 2018, appears below. count Title Cash Accounts receivable Supplies 31,000 41,000 1,600 61,000 21,000 Inventory Note receivable Interest receivable Prepaid rent Prepaid insurance office equipment Accumulated depreciation-office equipmen Accounts payable Salaries and wages payable Note payable 2,200 88,000 33,000 32,000 51,000 Deferred revenue Common stock Retained earnings Sales revenue Interest revenue Cost of goods sold Salaries and wages expense Ront expense Depreciation expense 61,000 32,320 149,000 71,000 19,000 12,100 1,200 6,120 3,100 Supplies expense Insurance expense Advertising expense 358,320 358,320 Totals

Answer 1

Adjusting Entries at the end of 31st of December, 2018:

Date Accounts and Explanations Debit (S) Credit (S) reciation E Accumulated Depreciation o record the depreciation e 11,000 11,000 incurred for the year) Salaies and Wage E 1.600 Salaries and Wages Payable o record the accrual of salaries and wages from Dec. 16 to Dec. 31 1.600 Interest $51,000*12/100*3 months/12 months 1,530 1,530 Interest Payable (To record the accrual of interest incurred for 3 months on the 12% Notes Payable - From October to December Interest Receivabe (S21,000*8/100*10 months/12 months) 11.667 Interest Revenue (To record the accrual of interest earned for 10 months on the 8% Notes Receivable - From March to December Prepaid Insurance (S6,120 15 months/24 months) (24 months - 9 months -15 months) 11.667 3.825 Insurance E (To record the prepaid insurance for 15 months by decreasing the insurance expense account balance that was wrongly recorded for total 24 months previously instead of 9 months from April to December 3.825