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rands. Pastina Company sells various types of pasta to grocery chains as private label reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Debits Credits Account Title Cash 30,000 Accounts receivable 40,000 1,500 Supplies Inventory 60,000 Notes receivable 20,000 Interest receivable 2,000 Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Interest payable 6,000 80,000 30,000 31,000 50,000 2,000 Deferred sales revenue 60,000 Common stock 28,500 Retained earnings 4,000 Dividends 146,000 Sales revenue Interest revenue Cost of goods sold Salaries expense 70,000 18,900 Rent expense 11,000 Depreciation expense Interest expense 1,100 Supplies expense Insurance expense Advertising expense 3,000 Totals 347,500 347,500 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $10,000. 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 $1,500. 3. On October 1, 2021, Pastina borrowed $50,000 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 $20,000, 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 $6,000 for a one-year fire insurance policy. The entire $6,000 was debited to prepaid insurance. 6. $800 of supplies remained on hand at December 31, 2021.

rands. Pastina Company sells various types of pasta to grocery chains as private label reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Debits Credits Account Title Cash 30,000 Accounts receivable 40,000 1,500 Supplies Inventory 60,000 Notes receivable 20,000 Interest receivable 2,000 Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Interest payable 6,000 80,000 30,000 31,000 50,000 2,000 Deferred sales revenue 60,000 Common stock 28,500 Retained earnings 4,000 Dividends 146,000 Sales revenue Interest revenue Cost of goods sold Salaries expense 70,000 18,900 Rent expense 11,000 Depreciation expense Interest expense 1,100 Supplies expense Insurance expense Advertising expense 3,000 Totals 347,500 347,500 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $10,000. 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 $1,500. 3. On October 1, 2021, Pastina borrowed $50,000 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 $20,000, 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 $6,000 for a one-year fire insurance policy. The entire $6,000 was debited to prepaid insurance. 6. $800 of supplies remained on hand at December 31, 2021.

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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Post the unadjusted balances and adjusting entries  for the t accounts.

rands. Pastina Company sells various types of pasta to grocery chains as private label reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Debits Credits Account Title Cash 30,000 Accounts receivable 40,000 1,500 Supplies Inventory 60,000 Notes receivable 20,000 Interest receivable 2,000 Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Interest payable 6,000 80,000 30,000 31,000 50,000 2,000 Deferred sales revenue 60,000 Common stock 28,500 Retained earnings 4,000 Dividends 146,000 Sales revenue Interest revenue Cost of goods sold Salaries expense 70,000 18,900 Rent expense 11,000 Depreciation expense Interest expense 1,100 Supplies expense Insurance expense Advertising expense 3,000 Totals 347,500 347,500 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $10,000. 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 $1,500. 3. On October 1, 2021, Pastina borrowed $50,000 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 $20,000, 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 $6,000 for a one-year fire insurance policy. The entire $6,000 was debited to prepaid insurance. 6. $800 of supplies remained on hand at December 31, 2021.
Transcribed Image Text:rands. Pastina Company sells various types of pasta to grocery chains as private label reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Debits Credits Account Title Cash 30,000 Accounts receivable 40,000 1,500 Supplies Inventory 60,000 Notes receivable 20,000 Interest receivable 2,000 Prepaid rent Prepaid insurance Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Interest payable 6,000 80,000 30,000 31,000 50,000 2,000 Deferred sales revenue 60,000 Common stock 28,500 Retained earnings 4,000 Dividends 146,000 Sales revenue Interest revenue Cost of goods sold Salaries expense 70,000 18,900 Rent expense 11,000 Depreciation expense Interest expense 1,100 Supplies expense Insurance expense Advertising expense 3,000 Totals 347,500 347,500 Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $10,000. 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 $1,500. 3. On October 1, 2021, Pastina borrowed $50,000 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 $20,000, 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 $6,000 for a one-year fire insurance policy. The entire $6,000 was debited to prepaid insurance. 6. $800 of supplies remained on hand at December 31, 2021.
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