Questions
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31.

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 35,500      
Accounts receivable 43,000      
Supplies 3,000      
Inventory 63,000      
Notes receivable 23,000      
Interest receivable 0      
Prepaid rent 2,500      
Prepaid insurance 9,000      
Office equipment 92,000      
Accumulated depreciation     34,500  
Accounts payable     34,000  
Salaries payable     0  
Notes payable     53,000  
Interest payable     0  
Deferred sales revenue     3,500  
Common stock     81,000  
Retained earnings     36,000  
Dividends 7,000      
Sales revenue     161,000  
Interest revenue     0  
Cost of goods sold 85,000      
Salaries expense 20,400      
Rent expense 12,500      
Depreciation expense 0      
Interest expense 0      
Supplies expense 2,600      
Insurance expense 0      
Advertising expense 4,500      
Totals 403,000   403,000  
 

Information necessary to prepare the year-end adjusting entries appears below.

  1. Depreciation on the office equipment for the year is $11,500.
  2. 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 $1,550.
  3. On October 1, 2021, Pastina borrowed $53,000 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, 2021, the company lent a supplier $23,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.
  5. On April 1, 2021, the company paid an insurance company $9,000 for a one-year fire insurance policy. The entire $9,000 was debited to prepaid insurance.
  6. $920 of supplies remained on hand at December 31, 2021.
  7. A customer paid Pastina $3,500 in December for 1,500 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
  8. On December 1, 2021, $2,500 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,250 per month. The entire amount was debited to prepaid rent.

3. Prepare an adjusted trial balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

In: Accounting

Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31.

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 35,500      
Accounts receivable 43,000      
Supplies 3,000      
Inventory 63,000      
Notes receivable 23,000      
Interest receivable 0      
Prepaid rent 2,500      
Prepaid insurance 9,000      
Office equipment 92,000      
Accumulated depreciation     34,500  
Accounts payable     34,000  
Salaries payable     0  
Notes payable     53,000  
Interest payable     0  
Deferred sales revenue     3,500  
Common stock     81,000  
Retained earnings     36,000  
Dividends 7,000      
Sales revenue     161,000  
Interest revenue     0  
Cost of goods sold 85,000      
Salaries expense 20,400      
Rent expense 12,500      
Depreciation expense 0      
Interest expense 0      
Supplies expense 2,600      
Insurance expense 0      
Advertising expense 4,500      
Totals 403,000   403,000  
 

Information necessary to prepare the year-end adjusting entries appears below.

  1. Depreciation on the office equipment for the year is $11,500.
  2. 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 $1,550.
  3. On October 1, 2021, Pastina borrowed $53,000 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, 2021, the company lent a supplier $23,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.
  5. On April 1, 2021, the company paid an insurance company $9,000 for a one-year fire insurance policy. The entire $9,000 was debited to prepaid insurance.
  6. $920 of supplies remained on hand at December 31, 2021.
  7. A customer paid Pastina $3,500 in December for 1,500 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
  8. On December 1, 2021, $2,500 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $1,250 per month. The entire amount was debited to prepaid rent.

6. Prepare a post-closing trial balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

In: Accounting

Pastina Company sells various types of pasta to grocery chains as private label brands. The company's...

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 31,700
Accounts receivable 40,400
Supplies 1,700
Inventory 60,400
Notes receivable 20,400
Interest receivable 0
Prepaid rent 1,100
Prepaid insurance 6,400
Office equipment 81,600
Accumulated depreciation 30,600
Accounts payable 31,400
Salaries payable 0
Notes payable 50,400
Interest payable 0
Deferred sales revenue 2,200
Common stock 62,800
Retained earnings 29,500
Dividends 4,400
Sales revenue 148,000
Interest revenue 0
Cost of goods sold 72,000
Salaries expense 19,100
Rent expense 11,200
Depreciation expense 0
Interest expense 0
Supplies expense 1,300
Insurance expense 0
Advertising expense 3,200
Totals 354,900 354,900

Information necessary to prepare the year-end adjusting entries appears below.

  1. Depreciation on the office equipment for the year is $10,200.
  2. 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 $850.
  3. On October 1, 2021, Pastina borrowed $50,400 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, 2021, the company lent a supplier $20,400 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.
  5. On April 1, 2021, the company paid an insurance company $6,400 for a one-year fire insurance policy. The entire $6,400 was debited to prepaid insurance.
  6. $530 of supplies remained on hand at December 31, 2021.
  7. A customer paid Pastina $2,200 in December for 850 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
  8. On December 1, 2021, $1,100 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $550 per month. The entire amount was debited to prepaid rent.

rev: 09_14_2019_QC_CS-180268, 10_11_2019_QC_CS-184133

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.)

In: Accounting

Pastina Company sells various types of pasta to grocery chains as private label brands. The company's...

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 31,700
Accounts receivable 40,400
Supplies 1,700
Inventory 60,400
Notes receivable 20,400
Interest receivable 0
Prepaid rent 1,100
Prepaid insurance 6,400
Office equipment 81,600
Accumulated depreciation 30,600
Accounts payable 31,400
Salaries payable 0
Notes payable 50,400
Interest payable 0
Deferred sales revenue 2,200
Common stock 62,800
Retained earnings 29,500
Dividends 4,400
Sales revenue 148,000
Interest revenue 0
Cost of goods sold 72,000
Salaries expense 19,100
Rent expense 11,200
Depreciation expense 0
Interest expense 0
Supplies expense 1,300
Insurance expense 0
Advertising expense 3,200
Totals 354,900 354,900

Information necessary to prepare the year-end adjusting entries appears below.

  1. Depreciation on the office equipment for the year is $10,200.
  2. 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 $850.
  3. On October 1, 2021, Pastina borrowed $50,400 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, 2021, the company lent a supplier $20,400 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.
  5. On April 1, 2021, the company paid an insurance company $6,400 for a one-year fire insurance policy. The entire $6,400 was debited to prepaid insurance.
  6. $530 of supplies remained on hand at December 31, 2021.
  7. A customer paid Pastina $2,200 in December for 850 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
  8. On December 1, 2021, $1,100 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $550 per month. The entire amount was debited to prepaid rent.

rev: 09_14_2019_QC_CS-180268, 10_11_2019_QC_CS-184133

3. Prepare an adjusted trial balance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

In: Accounting

Pastina Company sells various types of pasta to grocery chains as private label brands. The company's...

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 31,700
Accounts receivable 40,400
Supplies 1,700
Inventory 60,400
Notes receivable 20,400
Interest receivable 0
Prepaid rent 1,100
Prepaid insurance 6,400
Office equipment 81,600
Accumulated depreciation 30,600
Accounts payable 31,400
Salaries payable 0
Notes payable 50,400
Interest payable 0
Deferred sales revenue 2,200
Common stock 62,800
Retained earnings 29,500
Dividends 4,400
Sales revenue 148,000
Interest revenue 0
Cost of goods sold 72,000
Salaries expense 19,100
Rent expense 11,200
Depreciation expense 0
Interest expense 0
Supplies expense 1,300
Insurance expense 0
Advertising expense 3,200
Totals 354,900 354,900

Information necessary to prepare the year-end adjusting entries appears below.

  1. Depreciation on the office equipment for the year is $10,200.
  2. 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 $850.
  3. On October 1, 2021, Pastina borrowed $50,400 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, 2021, the company lent a supplier $20,400 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.
  5. On April 1, 2021, the company paid an insurance company $6,400 for a one-year fire insurance policy. The entire $6,400 was debited to prepaid insurance.
  6. $530 of supplies remained on hand at December 31, 2021.
  7. A customer paid Pastina $2,200 in December for 850 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
  8. On December 1, 2021, $1,100 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $550 per month. The entire amount was debited to prepaid rent.

rev: 09_14_2019_QC_CS-180268, 10_11_2019_QC_CS-184133

Required:

1. & 2. Post the unadjusted balances and adjusting entires into the appropriate t-accounts. (Enter the number of the adjusting entry in the column next to the amount. Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

In: Accounting

Pastina Company sells various types of pasta to grocery chains as private label brands. The company's...

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 Debits Credits
Cash 45,650
Accounts receivable 58,000
Supplies 1,850
Inventory 77,000
Note receivable 29,400
Interest receivable 0
Prepaid rent 2,700
Prepaid insurance 0
Office equipment 94,000
Accumulated depreciation—office equipment 35,250
Accounts payable 37,000
Salaries and wages payable 0
Note payable 71,400
Interest payable 0
Deferred revenue 0
Common stock 60,000
Retained earnings 23,000
Sales revenue 233,000
Interest revenue 0
Cost of goods sold 104,850
Salaries and wages expense 20,100
Rent expense 14,850
Depreciation expense 0
Interest expense 0
Supplies expense 1,350
Insurance expense 6,200
Advertising expense 3,700
Totals 459,650 459,650

Information necessary to prepare the year-end adjusting entries appears below.

Depreciation on the office equipment for the year is $11,750.

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 $1,650.

On October 1, 2018, Pastina borrowed $71,400 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, 2018, the company lent a supplier $29,400 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2019.

On April 1, 2018, the company paid an insurance company $6,200 for a two-year fire insurance policy. The entire $6,200 was debited to insurance expense.

$980 of supplies remained on hand at December 31, 2018.

A customer paid Pastina $1,920 in December for 1,600 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue.

On December 1, 2018, $2,700 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $1,350 per month.

For requirement 4, Assume that no common stock was issued during the year and that $3,600 in cash dividends were paid to shareholders during the year.

4. Prepare the income statement, statement of shareholders' equity and classified balance sheet for the year ended December 31, 2018.

In: Accounting

Pastina Company sells various types of pasta to grocery chains as private label brands. The company’s...

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 33,600
Accounts receivable 41,800
Supplies 2,400
Inventory 61,800
Notes receivable 21,800
Interest receivable 0
Prepaid rent 2,000
Prepaid insurance 6,900
Office equipment 87,200
Accumulated depreciation 32,700
Accounts payable 32,800
Salaries payable 0
Notes payable 51,800
Interest payable 0
Deferred sales revenue 2,900
Common stock 71,700
Retained earnings 33,000
Dividends 5,800
Sales revenue 155,000
Interest revenue 0
Cost of goods sold 79,000
Salaries expense 19,800
Rent expense 11,900
Depreciation expense 0
Interest expense 0
Supplies expense 2,000
Insurance expense 0
Advertising expense 3,900
Totals 379,900 379,900


Information necessary to prepare the year-end adjusting entries appears below.

  1. Depreciation on the office equipment for the year is $10,900.
  2. 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 $1,500.
  3. On October 1, 2021, Pastina borrowed $51,800 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, 2021, the company lent a supplier $21,800 and a note was signed requiring principal and interest at 9% to be paid on February 28, 2022.
  5. On April 1, 2021, the company paid an insurance company $6,900 for a two-year fire insurance policy. The entire $6,900 was debited to prepaid insurance.
  6. $800 of supplies remained on hand at December 31, 2021.
  7. A customer paid Pastina $2,900 in December for 1,554 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
  8. On December 1, 2021, $2,000 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022, at $1,000 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.)

In: Accounting

Required information [The following information applies to the questions displayed below.] Pastina Company sells various types...

Required information

[The following information applies to the questions displayed below.]

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 Debits Credits
Cash 30,000
Accounts receivable 40,000
Supplies 1,500
Inventory 60,000
Note receivable 20,000
Interest receivable 0
Prepaid rent 2,000
Prepaid insurance 0
Office equipment 80,000
Accumulated depreciation—office equipment 30,000
Accounts payable 31,000
Salaries and wages payable 0
Note payable 50,000
Interest payable 0
Deferred revenue 0
Common stock 60,000
Retained earnings 24,500
Sales revenue 148,000
Interest revenue 0
Cost of goods sold 70,000
Salaries and wages expense 18,900
Rent expense 11,000
Depreciation expense 0
Interest expense 0
Supplies expense 1,100
Insurance expense 6,000
Advertising expense 3,000
Totals 343,500 343,500


Information necessary to prepare the year-end adjusting entries appears below.

  1. Depreciation on the office equipment for the year is $10,000.
  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 $1,500.
  3. On October 1, 2018, Pastina borrowed $50,000 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 company lent a supplier $20,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2019.
  5. On April 1, 2018, the company paid an insurance company $6,000 for a two-year fire insurance policy. The entire $6,000 was debited to insurance expense.
  6. $800 of supplies remained on hand at December 31, 2018.
  7. A customer paid Pastina $2,000 in December for 1,500 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue.
  8. On December 1, 2018, $2,000 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019 at $1,000 per month.

Required:
1. & 2. Post the unadjusted balances and adjusting entires into the appropriate t-accounts. (Enter the number of the adjusting entry in the column next to the amount. Do not round intermediate calculations. Round your final answers to nearest whole dollar.)
  

In: Accounting

Required information [The following information applies to the questions displayed below.] Pastina Company sells various types...

Required information

[The following information applies to the questions displayed below.]

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 Debits Credits
Cash 30,000
Accounts receivable 40,000
Supplies 1,500
Inventory 60,000
Note receivable 20,000
Interest receivable 0
Prepaid rent 2,000
Prepaid insurance 0
Office equipment 80,000
Accumulated depreciation—office equipment 30,000
Accounts payable 31,000
Salaries and wages payable 0
Note payable 50,000
Interest payable 0
Deferred revenue 0
Common stock 60,000
Retained earnings 24,500
Sales revenue 148,000
Interest revenue 0
Cost of goods sold 70,000
Salaries and wages expense 18,900
Rent expense 11,000
Depreciation expense 0
Interest expense 0
Supplies expense 1,100
Insurance expense 6,000
Advertising expense 3,000
Totals 343,500 343,500


Information necessary to prepare the year-end adjusting entries appears below.

  1. Depreciation on the office equipment for the year is $10,000.
  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 $1,500.
  3. On October 1, 2018, Pastina borrowed $50,000 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 company lent a supplier $20,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2019.
  5. On April 1, 2018, the company paid an insurance company $6,000 for a two-year fire insurance policy. The entire $6,000 was debited to insurance expense.
  6. $800 of supplies remained on hand at December 31, 2018.
  7. A customer paid Pastina $2,000 in December for 1,500 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue.
  8. On December 1, 2018, $2,000 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019 at $1,000 per month.

For requirement 4, assume that no common stock was issued during the year and that $4,000 in cash dividends were paid to shareholders during the year.

4. Prepare the income statement, statement of shareholders' equity and classified balance sheet for the year ended December 31, 2018.
  

In: Accounting

Required information [The following information applies to the questions displayed below.] Pastina Company sells various types...

Required information

[The following information applies to the questions displayed below.]

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 Debits Credits
Cash 30,000
Accounts receivable 40,000
Supplies 1,500
Inventory 60,000
Note receivable 20,000
Interest receivable 0
Prepaid rent 2,000
Prepaid insurance 0
Office equipment 80,000
Accumulated depreciation—office equipment 30,000
Accounts payable 31,000
Salaries and wages payable 0
Note payable 50,000
Interest payable 0
Deferred revenue 0
Common stock 60,000
Retained earnings 24,500
Sales revenue 148,000
Interest revenue 0
Cost of goods sold 70,000
Salaries and wages expense 18,900
Rent expense 11,000
Depreciation expense 0
Interest expense 0
Supplies expense 1,100
Insurance expense 6,000
Advertising expense 3,000
Totals 343,500 343,500


Information necessary to prepare the year-end adjusting entries appears below.

  1. Depreciation on the office equipment for the year is $10,000.
  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 $1,500.
  3. On October 1, 2018, Pastina borrowed $50,000 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 company lent a supplier $20,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2019.
  5. On April 1, 2018, the company paid an insurance company $6,000 for a two-year fire insurance policy. The entire $6,000 was debited to insurance expense.
  6. $800 of supplies remained on hand at December 31, 2018.
  7. A customer paid Pastina $2,000 in December for 1,500 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue.
  8. On December 1, 2018, $2,000 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019 at $1,000 per month.

5. Prepare closing entries. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)
  

In: Accounting