Pastina Company sells various types of pasta to grocery chains as private label
ID: 2331856 • Letter: P
Question
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's fiscal year-end is December 31. The unadjusted trial balance as of December 31, 2018, appears belovw Account Title Cash Accounts receivable Supplies Inventory Note receivable Interest receivable Prepaid rent Prepaid insurance Office equipment Accumulated depreciation-office equipment Accounts payable Salaries and wages payable Note payable Interest payable Deferred 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 Debits Credits 39,200 48,000 1,350 68,000 21,300 1,700 74,000 27,750 27,000 51,300 60,000 18,500 188,000 84,600 17,100 9,350 850 4,400 2,700 372,550 372,550 Information necessary to prepare the year-end adjusting entries appears below 1. Depreciation on the office equipment for the year is $9,250 2. Employee salaries and wages are paid twice a month, on the 22nd for salaries and wages earned from the 1st through the 15th, and on the 7th of the following month for salaries and wages earned from the 16th through the end of the month. Salaries and wages earned from December 16 through December 31, 2018, were $1,150 . On October 1, 2018, Pastina borrowed $51,300 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. 2018. the companv lent a supplier $21.300 and a note was sianed reaurina Drincipal and interest at 8% toExplanation / Answer
Cash
Beg. Bal.
$39200
Ending balance
$39200
Accounts Receivable
Beg. Bal.
$48000
Ending balance
$48000
Supplies
Beg. Bal.
$1350
Adj. 6
$640
Ending balance
$710
Supplies Expense
Beg. Bal.
$850
Adj. 6
$640
Ending balance
$1490
Inventories
Beg. Bal.
$68000
Ending balance
$68000
Notes Receivable
Beg. Bal.
$21300
Ending balance
$21300
Interest Receivable
Beg. Bal.
$0
Adj. 4
$1420
Ending balance
$1420
Interest Revenue
Beg. Bal.
$0
Adj. 4
$1420
Ending balance
$1420
Prepaid Rent
Beg. Bal.
$1700
Adj. 8
$850
Ending balance
$850
Rent Expense
Beg. Bal.
$9350
Adj. 8
$850
Ending balance
$10200
Prepaid Insurance
Beg. Bal.
$0
Adj. 5
$2750
Ending balance
$2750
Insurance Expense
Beg. Bal.
$4400
Adj. 5
$2750
Ending balance
$1650
Office Equipment
Beg. Bal.
$74000
Ending balance
$74000
Accumulated Depreciation-Office Equipment
Beg. Bal.
$27750
Adj. 1
$9250
Ending balance
$37000
Depreciation Expense
Beg. Bal.
$0
Adj. 1
$9250
Ending balance
$9250
Accounts Payable
Beg. Bal.
$27000
Ending balance
$27000
Salaries and Wages Payable
Beg. Bal.
$0
Adj. 2
$1150
Ending balance
$1150
Salaries and Wages Expense
Beg. Bal.
$17100
Adj. 2
$1150
Ending balance
$18250
Notes Payable
Beg. Bal.
$51300
Ending balance
$51300
Interest Payable
Beg. Bal.
$0
Adj. 3
$1539
Ending balance
$1539
Interest Expense
Beg. Bal.
$0
Adj. 3
$1539
Ending balance
$1539
Deferred Revenue
Beg. Bal.
$0
Adj. 7
$1380
Ending balance
$1380
Sales Revenue
Beg. Bal.
$188000
Adj. 7
$1380
Ending balance
$186620
Common Stock
Beg. Bal.
$60000
Ending balance
$60000
Retained Earnings
Beg. Bal.
$18500
Ending balance
$18500
Cost of Goods Sold
Beg. Bal.
$84600
Ending balance
$84600
Advertising Expense
Beg. Bal.
$2700
Ending balance
$2700
Cash
Beg. Bal.
$39200
Ending balance
$39200