EACH NUMBER SHOULD HAVE ITS OWN SEPERATE JOURNAL ENTRY ON TH

EACH NUMBER SHOULD HAVE ITS OWN SEPERATE JOURNAL ENTRY ON THE WORKSHEET THANK YOU

EX. 1.

   2.

Problem 2-3 Adjusting entrles [LO2-5] Pastina Company sells varlous types of pasta to grocery chalns 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 Cash Accounts receivable Credits Debits 40,000 50,000 1,600 70,000 30,000 Inventory Note receivable Interest xeceivable Prepaid rent 2, 200 Office equipment Aecumulated depreciation-office equipnent Accounts payable Salaries and wages payable Note payable Interest payable Deferred xevenue Common stoc BB,000 33,000 41,000 60,000 70,000 44, 200 158,000 Sale revenue Cost of goods sold 8alaries and wages expense Rent expense Depreciation expense B0,000 19, 900 12,100 1,200 1,200 4,000 406, 200 Totals 406, 200 Information necessary to prepare the year-end adjusting entrles appears below. 1. Depreclation on the office equlpment for the year is $11,000. 2. Employee salarles and wages are pald twice a month, on the 22nd for salarles and wages earned from the 1st through the 15th, and on the 7th of the following month for salarles and wages eamed from the 16th through the end of the month. Salaries and wages 3. On October 1, 2018, Pastina borrowed $60,000 from a local bank and signed a note. The note requires Interest to be pald annually 4. On March 1, 2018, the company lent a supplier $30,000 and a note was signed requiring principal and Interest at 8% to be pad on 5. On April 1, 2018, the company pald an Insurance company $7,200 for a two-year fire Insurance policy. The entire $7,200 was 6. $700 of supples remalned on hand at December 31, 2018. earned from December 16 through December 31, 2018, were $1,600. on September 30 at 12%. The principal Is due in 10 years. February 28, 2019. debited to Insurance expense. 7. A customer pald Pastina $3.000 In December for 1,800 pounds of spaghetti to be delivered In January 2019. Pastina credited sales revenue 8. On December 1, 2018, $2,200 rent was pald to the owner of the building. The payment represented rent for December 2018 and January 2019, at $1100 per month.

Solution

Date Particulars Debit Credit 1 Depriciation Exp $11,000.00 Accumulated Depriciation $11,000.00 (to record Depriciation Expense) 2 Wages Expense $1,600.00 Wages Payable $1,600.00 (To record accrued wages expense) 3 Interest Expense $1,800.00 Interest payable $1,800.00 (To Record Interest exp.) 60000*12%*(3/12)= $1800 4 Accounts Receivables $2,000.00 Interest Revenue $2,000.00 (To record Interst Revenue Accrude) $30000*8%*(10/12)=$2000 5 Prepaid insurance $4,500.00 Insurance expense $4,500.00 Entire insurance amount of $ is debited to expense account Number of months from April 2018 to December 2018 is 9 months Unexpired period of insurance ason 31st December is 15 months only apportioned amount of insurance for 9 months has to be expended as insurance , but entire amount of $7200 is recorded as expensiture ($7200/24)x 15=$4500 6 Supply Expense $900.00 Supplies $900.00 (to record Supply expenses) Unadjusted balance of supplies is $1600 and physical count is $700 $1600-700=$900 7 Supplu Expenses $3,000.00 Supplies $3,000.00 (to record adjusment for revenue) Unearned revenue of $3000 recorded as revenue 8 Rent Expense $1,100.00 Prepaid rent $1,100.00 (to record rent expense) $2200/2=$1100 Apportioned amount of rent for December $1100