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 33,600 41,800 2,400 61,800 21,800 0 2,000 6,900 87,200 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 32,700 32,800 0 51,800 0 2,900 71,700 33,000 5,800 155,000 0 79,000 19,800 11,900 0 0 2,000 0 3,900 379,900 379,900 < Prev 6 of 6 HE Next

Explain the calculations, please.

Thanks.

Answer 1

No.	Journal			Debit	Credit		Calculations
1	Depreciation Exp A/c Dr.	10,900
	To Accumulated Depreciation A/c	10,900
	( Being depreciation on Office equipment accounted for the year . )
2	Salaries Expenses A/c Dr.	1,500
	To Salaries Payable A/c		1,500
	( Being outstanding salaries accounted for )
3	Interest Expense A/c   Dr.	1,554			51800*3/12*12%
	To Interest Payable A/c		1,554
	( Being Interest payable on notes accounted for )
4	Interest Recivable A/c    Dr.	1,635			21800*10/12*9%
	To Interest Revenue A/c		1,635
	( Being Interest receivable on money lent accounted for )
5	Insurance Expense A/c     Dr.	4,313			6900*15/24
	To Prepaid Insurance A/c		4,313
	( Being fire insurance paid wrongly debited to Prepaid for 15 months. )
6	Supplies A/c Dr.		800
	To Supplies Expense A/c		800
	( Being supplies inventory accounted for )
7	Deferred Sales Revenue A/c	2,900
	To Sales Revenue A/c		2,900
	( Being Sales credited to deferred sales revenue wrongly )
8	Rent Expense A/c Dr.	1,000
	To Prepaid Rent A/c			1,000
	( Being rent paid wrongly accounted to prepaid for Dec 21 . )