Pastina company manufactures and sells various types of

Assignment Help Accounting Basics

Reference no: EM13572282

Pastina Company manufactures and 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, 2013, appears below.

Account Title	Debits		Credits
Cash		26,000
Accounts receivable		36,000
Supplies		1,400
Inventory		56,000
Note receivable		16,000
Interest receivable		0
Prepaid rent		2,400
Prepaid insurance		0
Equipment		96,000
Accumulated depreciation-equipment				36,000
Accounts payable				27,000
Wages payable				0
Note payable				46,000
Interest payable				0
Unearned revenue				0
Common stock				56,000
Retained earnings				31,620
Sales revenue				144,000
Interest revenue				0
Cost of goods sold		66,000
Wage expense		18,500
Rent expense		13,200
Depreciation expense		0
Interest expense		0
Supplies expense		1,000
Insurance expense		5,520
Advertising expense		2,600

Totals		340,620		340,620

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

1.	Depreciation on the equipment for the year is $12,000.
2.	Employee wages are paid twice a month, on the 22nd for wages earned from the 1st through the 15th, and on the 7th of the following month for wages earned from the 16th through the end of the month. Wages earned from December 16 through December 31, 2013, were $1,400.
3.	On October 1, 2013, Pastina borrowed $46,000 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, 2013, the company lent a supplier $16,000 and a note was signed requiring principal and interest at 9% to be paid on February 28, 2014.
5.	On April 1, 2013, the company paid an insurance company $5,520 for a two-year fire insurance policy. The entire $5,520 was debited to insurance expense.
6.	$900 of supplies remained on hand at December 31, 2013.
7.	A customer paid Pastina $1,600 in December for 1,380 pounds of spaghetti to be manufactured and delivered in January 2014. Pastina credited sales revenue.
8.	On December 1, 2013, $2,400 rent was paid to the owner of the building. The payment represented rent for December and January 2014, at $1,200 per month.

Required:

Prepare the necessary December 31, 2013, adjusting journal 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 answers to the nearest dollar amount.)

Reference no: EM13572282

Questions Cloud

Gemini llc invested 1 million in a state-of-the-art : gemini llc invested 1 million in a state-of-the-art information system that promises to reduce processing costs for its

In 2012 amirante corporation had pretax financial income of : in 2012 amirante corporation had pretax financial income of 176700 and taxable income of 127400. the difference is due

The central accounting association held its annual public : problem 22-28a analyzing not-for-profit entity variancesthe central accounting association held its annual public

Ferraro inc established a stock appreciation rights sar : ferraro inc. established a stock appreciation rights sar program on january 1 2012 which entitles executives to receive

Pastina company manufactures and sells various types of : pastina company manufactures and sells various types of pasta to grocery chains as private label brands. the companys

What might explain the fact that different accounting : what might explain the fact that different accounting standard-setters have developed accounting standards that are

Rohan corporation holds assets with a fair value of 150000 : rohan corporation holds assets with a fair value of 150000 and a book value of 125000 and liabilities with a book value

Climber corporation acquired 90 percent of wisden : climber corporation acquired 90 percent of wisden corporation for 180000 cash. wisden reported net income of 30000 and

How do i analyze each transaction and record it in the : how do analyze each transaction and record it in the general journal by using pg. 3 to begin januarys transactions?if

User Account

All Pages