[The following information applies to the questions displayedbelow.]
Pastina Company sells various types of pasta to grocery chains asprivate label brands. The company's fiscal year-end is December 31.The unadjusted trial balance as of December 31, 2018, appearsbelow.
| Account Title | Debits | | Credits | |
| Cash | 40,950 | | | |
| Accounts receivable | 43,000 | | | |
| Supplies | 1,100 | | | |
| Inventory | 63,000 | | | |
| Note receivable | 16,800 | | | |
| Interest receivable | 0 | | | |
| Prepaid rent | 1,200 | | | |
| Prepaid insurance | 0 | | | |
| Office equipment | 64,000 | | | |
| Accumulated depreciation—officeequipment | | | 24,000 | |
| Accounts payable | | | 22,000 | |
| Salaries and wages payable | | | 0 | |
| Note payable | | | 46,800 | |
| Interest payable | | | 0 | |
| Deferred revenue | | | 0 | |
| Common stock | | | 60,000 | |
| Retained earnings | | | 16,000 | |
| Sales revenue | | | 163,000 | |
| Interest revenue | | | 0 | |
| Cost of goods sold | 73,350 | | | |
| Salaries and wages expense | 15,600 | | | |
| Rent expense | 6,600 | | | |
| Depreciation expense | 0 | | | |
| Interest expense | 0 | | | |
| Supplies expense | 600 | | | |
| Insurance expense | 3,400 | | | |
| Advertising expense | 2,200 | | | |
| Totals | 331,800 | | 331,800 | |
|
Information necessary to prepare the year-end adjusting entriesappears below.
Depreciation on the office equipment for the year is $8,000.
Employee salaries and wages are paid twice a month, on the 22ndfor salaries and wages earned from the 1st through the 15th, and onthe 7th of the following month for salaries and wages earned fromthe 16th through the end of the month. Salaries and wages earnedfrom December 16 through December 31, 2018, were $900.
On October 1, 2018, Pastina borrowed $46,800 from a local bankand signed a note. The note requires interest to be paid annuallyon September 30 at 12%. The principal is due in 10 years.
On March 1, 2018, the company lent a supplier $16,800 and a notewas signed requiring principal and interest at 8% to be paid onFebruary 28, 2019.
On April 1, 2018, the company paid an insurance company $3,400for a two-year fire insurance policy. The entire $3,400 was debitedto insurance expense.
$560 of supplies remained on hand at December 31, 2018.
A customer paid Pastina $1,080 in December for 900 pounds ofspaghetti to be delivered in January 2019. Pastina credited salesrevenue.
On December 1, 2018, $1,200 rent was paid to the owner of thebuilding. The payment represented rent for December 2018 andJanuary 2019, at $600 per month.
6. Prepare a post-closing trialbalance.
