Required information
Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8]
[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.
Account Title | Debits | Credits | ||
Cash | 37,000 | |||
Accounts receivable | 44,000 | |||
Supplies | 3,500 | |||
Inventory | 64,000 | |||
Notes receivable | 24,000 | |||
Interest receivable | 0 | |||
Prepaid rent | 3,000 | |||
Prepaid insurance | 10,000 | |||
Office equipment | 96,000 | |||
Accumulated depreciation | 36,000 | |||
Accounts payable | 35,000 | |||
Salaries payable | 0 | |||
Notes payable | 54,000 | |||
Interest payable | 0 | |||
Deferred sales revenue | 4,000 | |||
Common stock | 88,000 | |||
Retained earnings | 38,500 | |||
Dividends | 8,000 | |||
Sales revenue | 166,000 | |||
Interest revenue | 0 | |||
Cost of goods sold | 90,000 | |||
Salaries expense | 20,900 | |||
Rent expense | 13,000 | |||
Depreciation expense | 0 | |||
Interest expense | 0 | |||
Supplies expense | 3,100 | |||
Insurance expense | 0 | |||
Advertising expense | 5,000 | |||
Totals | 421,500 | 421,500 | ||
Information necessary to prepare the year-end adjusting entries appears below.
rev: 09_14_2019_QC_CS-180268, 10_11_2019_QC_CS-184133
Problem 2-4 (Algo) Parts 1 and 2
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.)
Solution:
Adjustment entries journa;
Pastina Company | |||
General Journal | |||
Date | Account titles | Debit (in $) | Credit (in $) |
31st December 2021 | |||
1 | Depreciation expense | 12,000 | |
Accumulated depreciation | 12,000 | ||
(To record depreciation for the year) | |||
2 | Salaries expense | 1,800 | |
Salaries payable | 1,800 | ||
(To record outstanding salary) | |||
3 | Interest expense | 1,620 | |
Interest payable | 1,620 | ||
(To record accrued interest on notes payable) (54000*12%*3/12) | |||
4 | Interest receivable | 1,600 | |
Interest revenue | 1,600 | ||
(To record accrued interest on notes receivable) (24000*8%*10/12) | |||
5 | Insurance expense | 7,500 | |
Prepaid insurance | 7,500 | ||
(To record expiry of insurance cover) (10000*9/12) | |||
6 | Supplies expense | 2,430 | |
Supplies | 2,430 | ||
(To record usage of supplies) (3500-1070) | |||
7 | No adjustment required | ||
8 | Rent expense | 1,500 | |
Prepaid rent | 1,500 | ||
(To record rent expense for the month of December 2021) | |||
Posting to T-Accounts:
Required information Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7,...
Required information Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [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. Account Title Debits Credits Cash 37,000 Accounts receivable 44,000 Supplies 3,500 Inventory 64,000 Notes receivable 24,000 Interest receivable 0 Prepaid rent...
Required information Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [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. Account Title Debits Credits Cash 37,000 Accounts receivable 44,000 Supplies 3,500 Inventory 64,000 Notes receivable 24,000 Interest receivable 0 Prepaid rent...
Required information Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [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. Account Title Debits Credits Cash 37,000 Accounts receivable 44,000 Supplies 3,500 Inventory 64,000 Notes receivable 24,000 Interest receivable 0 Prepaid rent...
Required information Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [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. Account Title Debits Credits Cash 37,000 Accounts receivable 44,000 Supplies 3,500 Inventory 64,000 Notes receivable 24,000 Interest receivable 0 Prepaid rent...
Required information Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [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. Account Title Debits Credits Cash 36,700 Accounts receivable 43,800 Supplies 3,400 Inventory 63,800 Notes receivable 23,800 Interest receivable 0 Prepaid rent...
Required information Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [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. Account Title Debits Credits Cash 36,700 Accounts receivable 43,800 Supplies 3,400 Inventory 63,800 Notes receivable 23,800 Interest receivable 0 Prepaid rent...
Required information Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [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. Account Title Debits Credits Cash 34,100 Accounts receivable 42,000 Supplies 2,500 Inventory 62,000 Notes receivable 22,000 Interest receivable 0 Prepaid rent...
Required information Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [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. Account Title Debits Credits Cash 36,700 Accounts receivable 43,800 Supplies 3,400 Inventory 63,800 Notes receivable 23,800 Interest receivable 0 Prepaid rent...
Required information Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [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. Account Title Debits Credits Cash 36,700 Accounts receivable 43,800 Supplies 3,400 Inventory 63,800 Notes receivable 23,800 Interest receivable 0 Prepaid rent...
Required information Problem 2-4 (Algo) Accounting cycle; adjusting entries through post-closing trial balance [LO2-4, 2-6, 2-7, 2-8] [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. Account Title Debits Credits Cash 34,100 Accounts receivable 42,000 Supplies 2,500 Inventory 62,000 Notes receivable 22,000 Interest receivable 0 Prepaid rent...