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 32,000 40,600 1,800 60, 600 20,600 0 1,200 6,600 82,400 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 30,900 31,600 0 50, 600 0 2,300 64,200 30,000 4,600 149,000 0 73,000 19,200 11,300 0 0 1,400 3,300 358, 600 358,600 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $10,300. 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 $900. 3. On October 1, 2021, Pastina borrowed $50,600 from a local bank and signed a note. The note requires interest to be paid annually on on September 30 at 12%. The principal is due in 10 years. 4. On March 1, 2021, the company lent a supplier $20,600 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022. 5. On April 1, 2021, the company paid an insurance company $6,600 for a one-year fire insurance policy. The entire $6,600 was debited to prepaid insurance. 6. $560 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $2,300 in December for 900 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. 8. On December 1, 2021, $1,200 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $600 per month. The entire amount was debited to prepaid rent. Required: 1. & 2. Post the unadjusted balances and adjusting entires into the appropriate t-accounts. (Enter the number of the adjusting entry in the column next to the amount. Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Cash 32,000 Accounts Receivable 40,600 Beg. bal. Beg. bal.

Answer 1

Credit Date 1 Adjusting Entries Account title Depreciation Expense Accumulated Depreciation (To record the depreciation expense) Debit $ 10,300 $ 10,300 2 $ 900 Salaries Expense Salaries payable (To record the accrued salaries expense) $ 900 3 $ 1,518 Interest Expense Interest payable (To record the accrued interest expense)[$50,600*12%*3/12] $ 1,518 4 $ 1,373 Interest Receivable Interest Revenue (To record the deferred interest expense) $20,600*8%*10/12] $ 1,373 5 $ 4,950 Insurance Expense Prepaid Insurance (To record the insurance expense) ($6,600*9/12] $ 4,950 6 $ 1,240 Supplies Expense Supplies (To record the supplies expense) ($1,800-$560] $ 1,240 7 No entry 8 $ 600 Rent Expense Prepaid Rent (To record the rent expenses $ 600

Ledger: Cash Accounts Receivable $ 40,600 Beg. $ 32,000 Beg. End. $ 32,000 End. $ 40,600 Beg. $ $ Prepaid Rent 1,200 $ 600 Beg. Prepaid Insurance $ 6,600 $ 4,950 8 5 End. $ 600 End. $ 1,650 Inventory $ 60,600 Beg. Supplies 1,800 $ $ Beg. 1,240 6 End. $ 560 End. $ 60,600

Notes Receivable $ 20,600 Office Equipment $ 82,400 Beg. Beg. End. $ 20,600 End. $ 82,400 Beg. Interest Receivable $ $ 1,373 Beg. Accumulated Depreciation $ 30,900 $ 10,300 4 1 End. $ 1,373 End. $ 41,200 Accounts Payable $ 31,600 Beg. Beg. Salaries Payable $ $ 900 2 End. $ 31,600 End. $ 900

Notes Payable $ 50,600 Beg. Beg. Interest Payable $ $ 1,518 3 End. $ 50,600 End. $ 1,518 Deferred Sales Revenue $ 2,300 Common Stock $ 64,200 Beg. Beg. End. $ 2,300 End. $ 64,200 Dividends Retained Earnings $ 30,000 Beg. Beg. $ 4,600 End. $ 30,000 End. $ 4,600

Sales Revenue $ 149,000 Beg. Beg. Interest Revenue $ - $ 1,373 4 End. $ 149,000 End. $ 1,373 Cost of goods sold $ 73,000 Beg. Beg. 2 Salaries Expense $ 19,200 $ 900 End. $ 73,000 End. $ 20,100 Beg. 8 Rent Expense $ 11,300 $ 600 Beg. 1 Depreciation Expense $ $ 10,300 8 End. $ 11,900 End. $ 10,300

Interest Expense Beg. $ $ Beg. 6 Supplies Expense $ 1,400 $ 1,240 3 1,518 End. $ 1,518 End. $ 2,640 Insurance Expense $ $ 4,950 Advertising Expense $ 3,300 Beg. 5 Beg. End. $ 4,950 End. $ 3,300

Account Particulars UUUUUUUUU Cash Accounts Receivable Prepaid Rent Prepaid Insurance Supplies Inventory Notes Receivable Office Equipment Interest Receivable 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 Adjsuted Trial balance Debit Credit 32,000 40,600 600 1,650 560 60,600 20,600 82,400 1,373 $ 41,200 $ 31,600 900 50,600 1,518 $ 2,300 64,200 $ 30,000 4,600 $ 149,000 $ 1,373 73,000 $ 20,100 $ 11,900 10,300 $ 1,518 2,640 4,950 3,300 $ 372,691 $ 372,691 UUUUUU | | |

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