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.   

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

1. Depreciation on the office equipment for the year is $10,300.
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 $900.
3. On October 1, 2021, Pastina borrowed $50,600 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 $20,600 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 $6,600 for a two-year fire insurance policy. The entire $6,600 was debited to prepaid insurance.
6. $560 of supplies remained on hand at December 31, 2021.
7. A customer paid Pastina $2,300 in December for 900 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
8. On December 1, 2021, $1,200 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $600 per month. The entire amount was debited to prepaid rent.

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

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.

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

Depreciation on the office equipment for the year is $12,000.

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 $1,400.

On October 1, 2018, Pastina borrowed $52,000 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.

On March 1, 2018, the company lent a supplier $22,000 and a note was signed requiring principal and interest at 9% to be paid on February 28, 2019.

On April 1, 2018, the company paid an insurance company $6,240 for a two-year fire insurance policy. The entire $6,240 was debited to insurance expense.

$900 of supplies remained on hand at December 31, 2018.

A customer paid Pastina $2,200 in December for 1,560 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue.

On December 1, 2018, $2,400 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $1,200 per month.

Required:
Prepare the necessary December 31, 2018, 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.)

[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 41,750 Accounts receivable 53,000 Supplies 1,600 Inventory 72,000 Note receivable 24,900 Interest receivable 0 Prepaid rent 2,200 Prepaid insurance 0 Office equipment 84,000 Accumulated depreciation—office equipment 31,500 Accounts payable 32,000 Salaries and wages payable 0 Note payable 60,900 Interest payable 0 Deferred revenue 0 Common stock 60,000 Retained earnings 20,500 Sales revenue 208,000 Interest revenue 0 Cost of goods sold 93,600 Salaries and wages expense 18,300 Rent expense 12,100 Depreciation expense 0 Interest expense 0 Supplies expense 1,050 Insurance expense 5,200 Advertising expense 3,200 Totals 412,900 412,900 Information necessary to prepare the year-end adjusting entries appears below. Depreciation on the office equipment for the year is $10,500. 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 $1,350. On October 1, 2018, Pastina borrowed $60,900 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 $24,900 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 $5,200 for a two-year fire insurance policy. The entire $5,200 was debited to insurance expense. $830 of supplies remained on hand at December 31, 2018. A customer paid Pastina $1,620 in December for 1,350 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue. On December 1, 2018, $2,200 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $1,100 per month. Required: 1. & 2. Post the opening 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.)

The Chan family composed of the parents (aged 40 and 42) and two children (Tom and Mary, aged 18 and 16 respectively), they have four goals that they would like to achieve:

1. To have the children (Tom and Mary) to receive university education in US
2. To accumulate enough for a luxury cruise trip in around 10 years
3. Save enough for retirement in 20-22 years.

And he is considering invest in

1. Small Cap Stocks
2. Blue Chips (Stocks)
3. Long dated High yield bonds
4. A 5 year investment grade bonds
5. Short term investment grade bond fund
6. Money market fund

If they would like to pick one investment for money invested for one goal, which investment you will suggest them to invest for each goal (i.e. Goal 1, 2 and 3) and why.

What is the best legal form of business? Watch the below video and read the lectures notes. Pay attention to the pros and cons of each legal form of business. Based on your readings, what legal entities that you would recommend for the following people. Explain why:

John has a new invention and is heading to the shark tank to woo investors

Kate is a college student who does graphic design on the side

Anna, a full-time nurse, want to partner with her friend from Italy (will be visiting the US for the first time in two weeks) to start an Italian restaurant

https://www.youtube.com/watch?v=A-Up-JUkaj0

Hello, this is Jessie Hardcastle over at the Refugee Resettlement Organization. We are dealing with a large number of women with infants who have recently been resettled in our town. However, the doctors tell us that they have some malnutrition problems and need information about how to eat healthily. The doctor has given them vitamins but they need basic nutrition for new mothers and infants up to 2 years old. Could you put together an educational program for them and choose examples of a good menu for a week for the mothers? They could also use the information on WIC, and on proper feeding of infants from newborn to 2 years old."

The corporation performs adjusting entries monthly. Closing entries are performed annually on December 31. During December, the corporation entered into the following transactions.

Data for Adjusting Entries

The advance payment of rent on December 1 covered a period of three months.

The annual interest rate on the note payable to Rent-It is 6 percent.

The rental equipment is being depreciated by the straight-line method over a period of eight years.

Office supplies on hand at December 31 are estimated at $620.

During December, the company earned $4,600 of the rental fees paid in advance by McNamer Construction Company on December 8.

As of December 31, six days’ rent on the backhoe rented to Mission Landscaping on December 26 has been earned.

Salaries earned by employees since the last payroll date (December 26) amounted to $1,900 at month-end.

It is estimated that the company is subject to a combined federal and state income tax rate of 40 percent of income before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in Year 2.

1. Record the entry to close revenue earned to income summary.

2. Record the entry to close all expense accounts to income summary.

3. Record the entry to transfer net income earned in Year 1 to the retained earnings account.

4. Record the entry to transfer dividends declared in 2015 to the retained earnings account.

Kenton and Denton Universities offer executive training courses to corporate clients. Kenton pays its instructors $5,000 per course taught. Denton pays its instructors $250 per student enrolled in the class. Both universities charge executives a $450 tuition fee per course attended.

Required

A. Prepare income statements for Kenton and Denton, assuming that 20 students attend a course.

B. Kenton University embarks on a strategy to entice students from Denton University by lowering its tuition to $240 per course. Prepare an income statement for Kenton assuming that the university is successful and enrolls 40 students in its course.

C. Denton University embarks on a strategy to entice students from Kenton University by lowering its tuition to $240 per course. Prepare an income statement for Denton, assuming that the university is successful and enrolls 40 students in its course.

I NEED IT ANSWERED IN THIS FORMAT, FILL IN BLANKS

Problem 11-28

a.      N = Number of units to break-even point

Sales − Variable cost − Fixed cost = Desired Profit

          (Sales price x N) − (Variable cost per unit x N) = Fixed cost + Desired Profit

(Contribution margin per unit x N) = Fixed cost + Desired Profit

N = (Fixed cost + Desired Profit) ÷ Contribution margin per unit

N = ($               + $           ) ÷ [$       - ($     + $       )] =          Units

          Break-even point dollars =        Units x $        selling price per unit = $

b.      N = Number of units to break-even point

          N = (Fixed cost + Desired Profit) ÷ Contribution margin per unit

          N = ($            + $            ) ÷ [$        – ($       + $      )]

          N =          Units

          Break-even point dollars =    Units x $            selling price per unit = $