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 34,900 Accounts receivable 42,600 Supplies 2,800 Inventory 62,600 Notes receivable 22,600 Interest receivable 0 Prepaid rent 2,300 Prepaid insurance 8,600 Office equipment 90,400 Accumulated depreciation 33,900 Accounts payable 33,600 Salaries payable 0 Notes payable 52,600 Interest payable 0 Deferred sales revenue 3,300 Common stock 78,200 Retained earnings 35,000 Dividends 6,600 Sales revenue 159,000 Interest revenue 0 Cost of goods sold 83,000 Salaries expense 20,200 Rent expense 12,300 Depreciation expense 0 Interest expense 0 Supplies expense 2,400 Insurance expense 0 Advertising expense 4,300 Totals 395,600 395,600 Information necessary to prepare the year-end adjusting entries appears below. Depreciation on the office equipment for the year is $11,300. 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 $1,400. On October 1, 2021, Pastina borrowed $52,600 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. On March 1, 2021, the company lent a supplier $22,600 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022. On April 1, 2021, the company paid an insurance company $8,600 for a one-year fire insurance policy. The entire $8,600 was debited to prepaid insurance. $860 of supplies remained on hand at December 31, 2021. A customer paid Pastina $3,300 in December for 1,400 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. On December 1, 2021, $2,300 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,150 per month. The entire amount was debited to prepaid rent.

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 34,900 Accounts receivable 42,600 Supplies 2,800 Inventory 62,600 Notes receivable 22,600 Interest receivable 0 Prepaid rent 2,300 Prepaid insurance 8,600 Office equipment 90,400 Accumulated depreciation 33,900 Accounts payable 33,600 Salaries payable 0 Notes payable 52,600 Interest payable 0 Deferred sales revenue 3,300 Common stock 78,200 Retained earnings 35,000 Dividends 6,600 Sales revenue 159,000 Interest revenue 0 Cost of goods sold 83,000 Salaries expense 20,200 Rent expense 12,300 Depreciation expense 0 Interest expense 0 Supplies expense 2,400 Insurance expense 0 Advertising expense 4,300 Totals 395,600 395,600 Information necessary to prepare the year-end adjusting entries appears below. Depreciation on the office equipment for the year is $11,300. 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 $1,400. On October 1, 2021, Pastina borrowed $52,600 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. On March 1, 2021, the company lent a supplier $22,600 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022. On April 1, 2021, the company paid an insurance company $8,600 for a one-year fire insurance policy. The entire $8,600 was debited to prepaid insurance. $860 of supplies remained on hand at December 31, 2021. A customer paid Pastina $3,300 in December for 1,400 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. On December 1, 2021, $2,300 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,150 per month. The entire amount was debited to prepaid rent.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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6.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	34,900
Accounts receivable	42,600
Supplies	2,800
Inventory	62,600
Notes receivable	22,600
Interest receivable	0
Prepaid rent	2,300
Prepaid insurance	8,600
Office equipment	90,400
Accumulated depreciation		33,900
Accounts payable		33,600
Salaries payable		0
Notes payable		52,600
Interest payable		0
Deferred sales revenue		3,300
Common stock		78,200
Retained earnings		35,000
Dividends	6,600
Sales revenue		159,000
Interest revenue		0
Cost of goods sold	83,000
Salaries expense	20,200
Rent expense	12,300
Depreciation expense	0
Interest expense	0
Supplies expense	2,400
Insurance expense	0
Advertising expense	4,300
Totals	395,600	395,600

Information necessary to prepare the year-end adjusting entries appears below.

Depreciation on the office equipment for the year is $11,300.
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 $1,400.
On October 1, 2021, Pastina borrowed $52,600 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.
On March 1, 2021, the company lent a supplier $22,600 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.
On April 1, 2021, the company paid an insurance company $8,600 for a one-year fire insurance policy. The entire $8,600 was debited to prepaid insurance.
$860 of supplies remained on hand at December 31, 2021.
A customer paid Pastina $3,300 in December for 1,400 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
On December 1, 2021, $2,300 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,150 per month. The entire amount was debited to prepaid rent.

TINA COMPANY
p.com - Yahoo Mail
þsing Trial Balance
ember 31, 2021
Account Title
Debits
Credits
Cash
$
258,286
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
258,286
$

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