6. Prepare a post-closing trial balance.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...
Related questions
Question
Need Assistance with post-closting
![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.
Debits
31,400
40, 200
1,600
60, 200
20,200
Account Title
Credits
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
1,000
6, 200
80,800
30,300
31, 200
50, 200
2,100
61,400
29,000
Common stock
Retained earnings
Dividends
4,200
Sales revenue
147,000
Interest revenue
Cost of goods sold
Salaries expense
Rent expense
Depreciation expense
Interest expense
Supplies expense
Insurance expense
Advertising expense
71,000
19,000
11,100
1,200
3,100
Totals
351, 200
351, 200
Information necessary to prepare the year-end adjusting entries appears below.
1. Depreciation on the office equipment for the year is $10,100.
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 $800.
3. On October 1, 2021, Pastina borrowed $50,200 from a local bank and signed a note. The note requires interest to be
paid annually on September 30 at 12%. The principal is due in 10 years.
4. On March 1, 2021, the company lent a supplier $20,200 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 $6,200 for a one-year fire insurance policy. The entire
$6,200 was debited to prepaid insurance.
6. $500 of supplies remained on hand at December 31, 2021.
7. A customer paid Pastina $2,100 in December for 800 pounds of spaghetti to be delivered in January 2022. Pastina
credited deferred sales revenue.
8. On December 1, 2021, $1,000 rent was paid to the owner of the building. The payment represented rent for December
2021 and January 2022 at $500 per month. The entire amount was debited to prepaid rent.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a92e595-69a8-4ba3-9e62-d1ba59e7a231%2F9fa03fb0-30cb-433c-a794-e0e7acbc8874%2Fkkx05ne_processed.png&w=3840&q=75)
Transcribed Image Text: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.
Debits
31,400
40, 200
1,600
60, 200
20,200
Account Title
Credits
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
1,000
6, 200
80,800
30,300
31, 200
50, 200
2,100
61,400
29,000
Common stock
Retained earnings
Dividends
4,200
Sales revenue
147,000
Interest revenue
Cost of goods sold
Salaries expense
Rent expense
Depreciation expense
Interest expense
Supplies expense
Insurance expense
Advertising expense
71,000
19,000
11,100
1,200
3,100
Totals
351, 200
351, 200
Information necessary to prepare the year-end adjusting entries appears below.
1. Depreciation on the office equipment for the year is $10,100.
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 $800.
3. On October 1, 2021, Pastina borrowed $50,200 from a local bank and signed a note. The note requires interest to be
paid annually on September 30 at 12%. The principal is due in 10 years.
4. On March 1, 2021, the company lent a supplier $20,200 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 $6,200 for a one-year fire insurance policy. The entire
$6,200 was debited to prepaid insurance.
6. $500 of supplies remained on hand at December 31, 2021.
7. A customer paid Pastina $2,100 in December for 800 pounds of spaghetti to be delivered in January 2022. Pastina
credited deferred sales revenue.
8. On December 1, 2021, $1,000 rent was paid to the owner of the building. The payment represented rent for December
2021 and January 2022 at $500 per month. The entire amount was debited to prepaid rent.
![6. Prepare a post-closing trial balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)
PASTINA COMPANY
Post-Closing Trial Balance
December 31, 2021
Account Title
Debits
Credits
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
Sales revenue
Interest revenue
Cost of goods sold
Salaries and wages expense
Rent expense
Depreciation expense
Interest expense
Supplies expense
Insurance expense
Advertising expense
Totals](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a92e595-69a8-4ba3-9e62-d1ba59e7a231%2F9fa03fb0-30cb-433c-a794-e0e7acbc8874%2Fyw870q_processed.png&w=3840&q=75)
Transcribed Image Text:6. Prepare a post-closing trial balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)
PASTINA COMPANY
Post-Closing Trial Balance
December 31, 2021
Account Title
Debits
Credits
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
Sales revenue
Interest revenue
Cost of goods sold
Salaries and wages expense
Rent expense
Depreciation expense
Interest expense
Supplies expense
Insurance expense
Advertising expense
Totals
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning