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Score: 10/10 Points 100 %
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- Award: 10 out of 10.00 points
Pastina Company sells various types of pasta to grocery chains as private label brands. The company’s reporting year-end is December - The unadjusted trial balance as of December 31, 2021, appears below.
Account Title Debits Credits
Cash 34,000
Accounts receivable 42,200
Supplies 2,600
Inventory 62,200
Notes receivable 22,200
Interest receivable 0
Prepaid rent 2,400
Prepaid insurance 7,100
Office equipment 88,800
Accumulated depreciation 33,300
Accounts payable 33,200
Salaries payable 0
Notes payable 52,200
Interest payable 0
Deferred sales revenue 3,100
Common stock 74,300
Retained earnings 34,000
Dividends 6,200
Sales revenue 157,000
Interest revenue 0
Cost of goods sold 81,000
Salaries expense 20,000
Rent expense 12,100
Depreciation expense 0
Interest expense 0
Supplies expense 2,200
Insurance expense 0
Advertising expense 4,100
Totals 387,100 387,100
Information necessary to prepare the year-end adjusting entries appears below. - Depreciation on the office equipment for the year is $11,100.
- 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. - On October 1, 2021, Pastina 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. - 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. - On April 1, 2021, the company paid an insurance company $7,100 for a one-year fire insurance policy. The entire $7,100 was debited
to prepaid insurance. - $900 of supplies remained on hand at December 31, 2021.
- A customer paid Pastina $1,900 in December for 1,566 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred
sales revenue. - 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.
Required:
Prepare the necessary December 31, 2021, adjusting journal entries. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest
whole dollar amount.)
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No Transaction General Journal Debit Credit
1 1 Depreciation expense 11,100
Accumulated depreciation 11,100
2 2 Salaries expense 1,400
Salaries payable 1,400
3 3 Interest expense 1,566
Interest payable 1,566
4 4 Interest receivable 1,665
Interest revenue 1,665
5 5 Insurance expense 5,325
Prepaid insurance 5,325
6 6 Supplies expense 1,700
Supplies 1,700
7 7 No journal entry required
8 8 Rent expense 1,200
Prepaid rent 1,200
rev: 09_22_2020_QC_CS-229266, 10_20_2020_QC_CS-236698
References
General Journal Difficulty: 1 Easy Learning Objective: 02-06 Record adjusting journal entries
in general journal format, post entries, and prepare an
adjusted trial balance.
Pastina Company sells various types of pasta to grocery chains as private label brands. The company’s reporting year-end is December - The unadjusted trial balance as of December 31, 2021, appears below.
Account Title Debits Credits
Cash 34,000
Accounts receivable 42,200
Supplies 2,600
Inventory 62,200
Notes receivable 22,200
Interest receivable 0
Prepaid rent 2,400
Prepaid insurance 7,100
Office equipment 88,800
Accumulated depreciation 33,300
Accounts payable 33,200
Salaries payable 0
Notes payable 52,200
Interest payable 0
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Deferred sales revenue 3,100
Common stock 74,300
Retained earnings 34,000
Dividends 6,200
Sales revenue 157,000
Interest revenue 0
Cost of goods sold 81,000
Salaries expense 20,000
Rent expense 12,100
Depreciation expense 0
Interest expense 0
Supplies expense 2,200
Insurance expense 0
Advertising expense 4,100
Totals 387,100 387,100
Information necessary to prepare the year-end adjusting entries appears below. - Depreciation on the office equipment for the year is $11,100.
- 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. - On October 1, 2021, Pastina 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. - 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. - On April 1, 2021, the company paid an insurance company $7,100 for a one-year fire insurance policy. The entire $7,100 was debited
to prepaid insurance. - $900 of supplies remained on hand at December 31, 2021.
- A customer paid Pastina $1,900 in December for 1,566 pounds of spaghetti to be delivered in January 2022. Pastina credited
deferred sales revenue. - 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.
Required:
Prepare the necessary December 31, 2021, adjusting journal entries. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest
whole dollar amount.)
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Sample Solution