In: Accounting
Chapter 2, #4
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 | 32,000 | |||
Accounts receivable | 40,600 | |||
Supplies | 1,800 | |||
Inventory | 60,600 | |||
Notes receivable | 20,600 | |||
Interest receivable | 0 | |||
Prepaid rent | 1,200 | |||
Prepaid insurance | 6,600 | |||
Office equipment | 82,400 | |||
Accumulated depreciation | 30,900 | |||
Accounts payable | 31,600 | |||
Salaries payable | 0 | |||
Notes payable | 50,600 | |||
Interest payable | 0 | |||
Deferred sales revenue | 2,300 | |||
Common stock | 64,200 | |||
Retained earnings | 30,000 | |||
Dividends | 4,600 | |||
Sales revenue | 149,000 | |||
Interest revenue | 0 | |||
Cost of goods sold | 73,000 | |||
Salaries expense | 19,200 | |||
Rent expense | 11,300 | |||
Depreciation expense | 0 | |||
Interest expense | 0 | |||
Supplies expense | 1,400 | |||
Insurance expense | 0 | |||
Advertising expense | 3,300 | |||
Totals | 358,600 | 358,600 | ||
Information necessary to prepare the year-end adjusting entries appears below.
5. Prepare closing entries. (If no
entry is required for a particular transaction, select "No journal
entry required" in the first account field. Do not round
intermediate calculations. Round your final answers to nearest
whole dollar.)
1. revenue accounts
2. expense accounts
3. dividend accounts
working | unadjusted amt | trans | adjusting entries | total | ||||||
dr | cr | dr | cr | dr | cr | |||||
Sales revenue | 149000 | 149000 | ||||||||
Interest revenue | 1373 | 20600x.08x10/12 | 1373 | |||||||
Cost of goods sold | 73,000 | 73,000 | ||||||||
Salaries expense | 19,200 | 900 | 20100 | |||||||
Rent expense | 11,300 | 600 | 11900 | |||||||
Depreciation expense | 0 | 10300 | 10300 | |||||||
Interest expense | 0 | 1518 | 50600x.12x3/12 | 1518 | ||||||
Supplies expense | 1,400 | 1240 | 1800-560 | 2640 | ||||||
Insurance expense | 0 | 2475 | 6600/24x9 | 2475 | ||||||
Advertising expense | 3,300 | 3300 | ||||||||
date | accounts title | dr | cr | |||||||
31-Dec-21 | Sales revenue | 149000 | ||||||||
interest revenue | 1373 | |||||||||
Income summary | 150373 | |||||||||
to close sales andinterest revenue | ||||||||||
31-Dec | Income summary | 125233 | ||||||||
Cost of goods sold | 73,000 | |||||||||
Salaries expense | 20,100 | |||||||||
Rent expense | 11,900 | |||||||||
Depreciation expense | 10,300 | |||||||||
Interest expense | 1,518 | |||||||||
Supplies expense | 2,640 | |||||||||
Insurance expense | 2,475 | |||||||||
Advertising expense | 3,300 | |||||||||
to close expenses accounts | ||||||||||
31-Dec | Income summary | 25140 | ||||||||
Retained earnings | 25140 | |||||||||
to close income summary | ||||||||||
31-Dec | Retained earnings | 4600 | ||||||||
dividend | 4600 | |||||||||
if any doubt please comment |