Question

Saved Chapter 2 Homework - Problems Help Save & Ch 2 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 5 points Debits 30,000 40,000 1,500 60,000 20,000 clock 2.000 6.000 80,000 Print 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 Deterred sales revenue Common stock Retained earning Dividende Sales revenge Interest revenue Coat of goods sold salaries expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Advertising expense Totala 30,000 31,000 0 50,000 0 2.000 60,000 28,500 References 4.000 146,000 0 70,000 18.900 11,000 1,100 o 3,000 347.500 347,500 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $10.000 2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the Enllan month inr calarise amor from the 16th thin the end of the month Salarie arar fram haramhar 16 throun < Prey 2 of 2 !!! Next >

Answer 1

Journal Entries for Dec 31, 2021 : -

1.) Depreciation Expense A/c Dr. $10000

To Office Equipment A/c     $10000

(Being depreciation entry made for the year)

2.) Salaries Expense A/c Dr. $1500

To Salary Payable A/c $1500

(Being Salary accounted from 16th to 31st Dec,2021)

3.) Interest Payable A/c Dr. $1500

To Notes Payable A/c $1500

(Being Intt accounted for 3 months)

4.) Notes Receivable A/c Dr. $1333.34

To Interest Revenue A/c $1333.34

(Being intt accounted for 10 months)

5.) Insurance Expense A/c Dr. $2250

To Prepaid Insurance A/c $2250

(Being current year insurance expense booked from April to Dec, 2021)

6.) Supplies Expense A/c Dr. $700

To Supplies A/c $700

(Being Supplies expenses accounted as only $800 left in hand out of $1500)

7.) Deferred Sales Revenue A/c Dr. $2000

To Sales Revenue A/c $2000

(Being amount received from customer recorded as sales)

8.) Rent Expense A/c Dr. $1000

To Prepaid Rent A/c $1000

(Being Rent recorded for the month of Dec, 2021 in the books)