Pastina Company sells various types of pasta to grocery chains as private label
ID: 2331874 • 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 below 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 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 3. 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 yearsExplanation / Answer
PASTINA COMPANY Post-Closing Trail Balance December 31,2018 Account Title Debits Credits Cash 39200 Accounts Receivable 48000 Supplies 710 Inventory 68000 Note receivable 21300 Interest receivable 1420 Prepaid rent 850 Prepaid insurance 2750 Office Equipment 74000 Accumulated Depreciation -office Equipment 37000 Accounts Payable 27000 Salaries and wages payable 1150 Note payable 51300 Interest payable 1539 Deferred revenue 1380 Common Stock 60000 Retained Earnings 18500 Sales Revenue 186620 Interest revenue 1420 Cost of Goods Sold 84600 Salaries and wages Expense 18250 Rent Expense 10200 Depreciation Expense 9250 Interest Expense 1539 Supplies Expense 1490 Insurance Expense 1650 Advertising Expense 2700 Totals 385909 385909