Question

Pestre Company sels various types of pasta to grocery chalns as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Credita te receivable upplies Sot receivable Teterest receivable Prepaid rent Debite 32,400 41,200 2,100 61,200 21,200 0 2.000 6,600 84,800 otequent Related depreciation Le payable 31,800 32,200 tetet pale Deferred sales revenue 51,200 Sales reve 2,600 67.800 31,500 5,200 Cet of sold 152,000 0 terte es 76,000 19,500 11.600 0 1.700 Totale 369,100 wormation necessary to prepare the year-end adjusting entries appears below. 369,100 Depreciation on the office equipment for the year is $10,600, 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 following month for salaries earned from the 16th through the end of the month Salaries earned from December 16 through December 31, 2021, were $1500 < Prey 2 of 3

Answer 1

No.	Account Titles	Debit	Credit
1	Depreciation Expense	10,600
	Accumulated Depreciation		10,600
	(Depreciation expense recorded)
2	Salaries Expense	1,500
	Salaries Payable		1,500
	(Salaries accrued but not paid)
3	Interest Expense	1,536		=51200*12%*3/12
	Interest Payable		1,536
	(Interest accrued for 3 months but not paid)
4	Interest Receivable	1,590		=21200*9%*10/12
	Interest Revenue		1,590
	(Interest income earned for 10 months but not received)
5	Insurance Expense	2,475		=6600/9*24
	Prepaid Insurance		2,475
	(Insurance expired during the year for 9 months)
6	Supplies Expense	1,300		=2100-800
	Supplies		1,300
	(Supplies consumed)
7	No entry
	(Since it is correctly recorded as deferred sales revenue)
8	Rent Expense	1,000
	Prepaid Rent		1,000
	(Rent for December booked as an expense)