Chapter 2 HW Saved Help Save & Exit Submit Check my work 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 38,000 48,000 1,400 68,000 28,000 Credita Cash Accounte receivable ooints Supplies Inventory Note receivable Interent receivable Skipped Prepaid rent Prepaid inaurance office equipment Accumulated depreciation-office equipment Accounts payable Salaries and wages payable Note payable Interest payable Deferred revenue Common atock Retained earnings Sales revenue Interest revenue 2,400 96,000 eBook 36,000 39,000 Print 0 58,000 0 References 68,000 47.460 156,000 78,000 19,700 13,200 Cost of goods sold Salarios and wages expense Rent expense Depreciation expense Interest expense Supplies expense Insurance expense Advertising expense C 0 1.000 6,960 3,800 404,460 404,460 Totals Prev 8 of 13 Next> cation Saved Help Save & Exit Submit Check my work Information necessary to prepare the year-end adjusting entries appears below. 1. Depreciation on the office equipment for the year is $12,000 2. Employee salarles 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 salarles and wages earned from the 16th through the end of the month. Salaries and wages eamed from December 16 through December 31, 2018, were $1,400. 3. On October 1, 2018, Pastina borrowed $58,000 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 $28,000 and a note was signed requiring principal and interest at 9 % to be paid on February 28, 2019. 5. On April 1, 2018, the company paid an insurance company $6,960 for a two-year fire insurance policy. The entire $6,960 was debited to insurance expense. 6. $900 of supplies remained on hand at December 31, 2018. 7. A customer paid Pastina $2,800 in December for 1,740 pounds of spaghetti to be delivered in January 2019. Pastina credited sales points siepped eBook Print References revenue. 8. On December 1, 2018, $2,400 rent was paid to the owner of the building. The payment represented rent for De January 2019, at $1,200 per month. cember 2018 and 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.) raw Prev 8 of 13 Next