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 Accounts 36,400
Receivable supplies 43,600
Inventory 3,300
Notes receivable 63,600
Interest receivable 23,600
Prepaid rent 0
Prepaid insurance 2,800
office equipment 9,600
Accunulated depreciation 94,400
Accounts payable 35,400
Salaries payable 34, 600
Notes payable 0
Interest payable 53, 600
Deferred sales revenue 0
Common stock 3,000
Retained earnings 85,200
Dividends 37,500
Sales revenue 7,600
Interest revenue 164,000
Cost of goods sold 88,000
Salaries expense 20,700
Rent expense 12,800
Depreciation expense 0
Interest expense 0
Supplies expense 2,900
Insurance expense 0
Advertising expense 4,800
Totals 414, 100 414.100
Information necessary to prepare the year-end adjusting entries appears below:
A. Depreciation on the office equipment for the year is $11,100.
B. 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.
C. On October 1, 2021, General Mills borrowed $52,200 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.
D. On March 1, 2021, the company lent a supplier $22,200 and a note was signed requiring principal and interest at 9% to be paid on February 28, 2022.
E. On April 1, 2021, the company paid an insurance company $7,100 for a two-year fire insurance policy. The entire $7,100 was debited to prepaid insurance.
F. $900 of supplies remained on hand at December 31, 2021.
G. A customer paid General Mills $1,900 in December for 1,566 pounds of spaghetti to be delivered in January 2022. General Mills credited deferred sales revenue.
H. On December 1, 2021, $2,400 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022, at $1,200 per month. The entire amount was debited to prepaid rent.