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 45,300
Accounts receivable 59,000
Supplies 1,900
Inventory 78,000
Note receivable 30,300
Interest receivable 0
Prepaid rent 2,800
Prepaid insurance 0
Office equipment 96,000
Accumulated depreciation-office equipment 36,000
Accounts payable 38,000
Salaries and wages payable 0
Note payable 72,300
Interest payable 0
Deferred revenue 0
Common stock 60,000
Retained earnings 23,500
Sales revenue 238,00
Interest revenue 0
Cost of goods sold 107,100
Salaries and wages expense 20,400
Rent expense 15,400
Depreciation expense 0
Interest expense 0
Supplies expense 1,400
Insurance expense 6,400
Advertising expense 3,800
Totals 467,800 467,800
1. Depreciation on the office equipment for the year is $11,900.
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 $1,600.
3. On October 1, 2021, Pastina borrowed $53,800 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 $23,800 and a note was signed requiring principal and interest at 9% to be paid on February 28, 2022.
5. On April 1, 2021, the company paid an insurance company $7,900 for a one-year fire insurance policy. The entire $7,900 was debited to prepaid insurance.
6. $700 of supplies remained on hand at December 31, 2021.
7. A customer paid Pastina $1,100 in December for 1,614 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.
8. On December 1, 2021, $2,200 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022, at $1,100 per month.