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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 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 Connon 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 Debits Credits 34,600 42,400 2,700 62,400 22,480 e 2,200 8,400 89,600 6,400 82,000 20,100 12,200 e 2,300 33,600 33,400 e 52,400 e 3,200 76,800 34,500 158,000 4,200 391,900 391,900 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $11,200. 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 $1,350. 3. On October 1, 2021, Pastina borrowed $52.400 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 suppiller $22.400 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 $8,400 for a one-year fire Insurance policy. The entire $8.400 was debited to prepaid Insurance. 6. $830 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $3,200 in December for 1,350 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. inted rent for December

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 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 Connon 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 Debits Credits 34,600 42,400 2,700 62,400 22,480 e 2,200 8,400 89,600 6,400 82,000 20,100 12,200 e 2,300 33,600 33,400 e 52,400 e 3,200 76,800 34,500 158,000 4,200 391,900 391,900 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $11,200. 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 $1,350. 3. On October 1, 2021, Pastina borrowed $52.400 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 suppiller $22.400 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 $8,400 for a one-year fire Insurance policy. The entire $8.400 was debited to prepaid Insurance. 6. $830 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $3,200 in December for 1,350 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. inted rent for December

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 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 Connon 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 Problem 2-4 (Algo) Parts 1 and 2 S Beg bal End bal End bal bal bal Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $11,200. 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 $1,350. 3. On October 1, 2021, Pastina borrowed $52,400 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 $22,400 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 $8,400 for a one-year fire Insurance policy. The entire $8,400 was debited to prepaid Insurance. 6. $830 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $3,200 in December for 1,350 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. ented rent for December 34.600 34.800 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) Prepaid Rent 2.200 1.100 1,100 Supplies 2.700 Ⓒ 830 1,870 Note Receivable 22.400 Ⓒ Answer is not complete. b Income Statement of Statement SE Beg b Accounts Receivable 42,400Ⓒ 42,400 Prepaid Insurance 8,400 2,100 02,400 Inventory 82,400 6,300 Office Equipment 33.000 11,200 Debits Credits 34,600 42,400 Balance Sheet 2,700 62,400 22,400 e 2,200 8,400 89,600 6,400 82,000 20,100 12,200 2,300 4,200 391,900 PASTINA COMPANY Income Statement For the Year Ended December 31, 2021 ✓ L. Prepare an Income statement and a statement of shareholders' equity for the year ended December alance sheet as of December 31, 2021. Assume that no common stock was issued during the year and vere paid to shareholders during the year. 33,600 33,400 52,400 Complete this question by entering your answers in the tabs below. 3,200 76,800 34,500 158,000 391,900 Prepare the income statement for the year ended December 31, 2021. (Other expenses should be indicate sign.) $ < Income Statement 0 0 0 ol Statement of SE > View transaction list View Journal entry worksheet No Date 1 December 31, 2021 Sales revenue Interest revenue roblem 2-4 (Algo) Part 3 General Journal . Prepare an adjusted trial balance. (Do not round Intermediate calculations. Round your fina Cash Accounts receivable Supplies nventory Account Title Notes receivable nterest receivable Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable nterest payable Deferred sales revenue Common stock Retained earnings Dividends Sales revenue nterest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense nterest expense Supplies expense nsurance expense Advertising expense Totals Debit Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Account Title Prepaid rent Prepaid insurance Office equipment PASTINA COMPANY Adjusted Trial Balance December 31, 2021 Problem 2-4 (Algo) Part 5 i. Prepare closing entries. (If no entry is required for a particular transaction, select "No journal entry required" in the first account ield. Do not round Intermediate calculations. Round your final answers to nearest whole dollar.) 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 Credit > Answer is not complete. Ⓡ $ Debits 34,600 42,400✔ 2,700 62,400✔ 22,400 S 0x 2,200 X 8,400 89,600 6,400✔ 0X 82,000 20,100 X 12,200 0X 0X 2,300 Problem 2-4 (Algo) Part 6 6. Prepare a post-closing trial balance. (Do not round Intermediate calculations. Round your final ans PASTINA COMPANY Post-Closing Trial Balance December 31, 2021 0x 4,200✔ $ 391,900 Debits IS Credits 0 $ 33,600X 33,400✔ 0x 52,400 0X 3,200 76,800✔ 34,500 158,000✔ 391,900 Credits
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. 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 Connon 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 Problem 2-4 (Algo) Parts 1 and 2 S Beg bal End bal End bal bal bal Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $11,200. 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 $1,350. 3. On October 1, 2021, Pastina borrowed $52,400 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 $22,400 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 $8,400 for a one-year fire Insurance policy. The entire $8,400 was debited to prepaid Insurance. 6. $830 of supplies remained on hand at December 31, 2021. 7. A customer paid Pastina $3,200 in December for 1,350 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. ented rent for December 34.600 34.800 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) Prepaid Rent 2.200 1.100 1,100 Supplies 2.700 Ⓒ 830 1,870 Note Receivable 22.400 Ⓒ Answer is not complete. b Income Statement of Statement SE Beg b Accounts Receivable 42,400Ⓒ 42,400 Prepaid Insurance 8,400 2,100 02,400 Inventory 82,400 6,300 Office Equipment 33.000 11,200 Debits Credits 34,600 42,400 Balance Sheet 2,700 62,400 22,400 e 2,200 8,400 89,600 6,400 82,000 20,100 12,200 2,300 4,200 391,900 PASTINA COMPANY Income Statement For the Year Ended December 31, 2021 ✓ L. Prepare an Income statement and a statement of shareholders' equity for the year ended December alance sheet as of December 31, 2021. Assume that no common stock was issued during the year and vere paid to shareholders during the year. 33,600 33,400 52,400 Complete this question by entering your answers in the tabs below. 3,200 76,800 34,500 158,000 391,900 Prepare the income statement for the year ended December 31, 2021. (Other expenses should be indicate sign.) $ < Income Statement 0 0 0 ol Statement of SE > View transaction list View Journal entry worksheet No Date 1 December 31, 2021 Sales revenue Interest revenue roblem 2-4 (Algo) Part 3 General Journal . Prepare an adjusted trial balance. (Do not round Intermediate calculations. Round your fina Cash Accounts receivable Supplies nventory Account Title Notes receivable nterest receivable Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable nterest payable Deferred sales revenue Common stock Retained earnings Dividends Sales revenue nterest revenue Cost of goods sold Salaries expense Rent expense Depreciation expense nterest expense Supplies expense nsurance expense Advertising expense Totals Debit Cash Accounts receivable Supplies Inventory Notes receivable Interest receivable Account Title Prepaid rent Prepaid insurance Office equipment PASTINA COMPANY Adjusted Trial Balance December 31, 2021 Problem 2-4 (Algo) Part 5 i. Prepare closing entries. (If no entry is required for a particular transaction, select "No journal entry required" in the first account ield. Do not round Intermediate calculations. Round your final answers to nearest whole dollar.) 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 Credit > Answer is not complete. Ⓡ $ Debits 34,600 42,400✔ 2,700 62,400✔ 22,400 S 0x 2,200 X 8,400 89,600 6,400✔ 0X 82,000 20,100 X 12,200 0X 0X 2,300 Problem 2-4 (Algo) Part 6 6. Prepare a post-closing trial balance. (Do not round Intermediate calculations. Round your final ans PASTINA COMPANY Post-Closing Trial Balance December 31, 2021 0x 4,200✔ $ 391,900 Debits IS Credits 0 $ 33,600X 33,400✔ 0x 52,400 0X 3,200 76,800✔ 34,500 158,000✔ 391,900 Credits
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