Question

Required information [The following information applies to the questions displayed below.] Pastina Company sells various types...

Required information

[The following information applies to the questions displayed below.]


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

238,000

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

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 salaries 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 salaries and wages earned from the 16th through the end of the month. Salaries and wages earned from December 16 through December 31, 2018, were $1,700.

3. On October 1, 2018, Pastina borrowed $72,300 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 $30,300 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2019.

5. On April 1, 2018, the company paid an insurance company $6,400 for a two-year fire insurance policy. The entire $6,400 was debited to insurance expense.

6. $1,010 of supplies remained on hand at December 31, 2018.

7. A customer paid Pastina $1,980 in December for 1,650 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue.

8. On December 1, 2018, $2,800 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $1,400 per month.

For requirement 4, Assume that no common stock was issued during the year and that $3,600 in cash dividends were paid to shareholders during the year.

4. Prepare the income statement, statement of shareholders' equity and classified balance sheet for the year ended December 31, 2018.

Prepare the income statement for the year ended December 31, 2018. (Other expenses should be indicated with a minus sign.)

Prepare the statement of shareholders' equity for the year ended December 31, 2018.

Prepare the classified balance sheet for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Required information [The following information applies to the questions displayed below.] Pastina Company sells various types...
Required information [The following information applies to the questions displayed below.] 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...
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's...
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below.     Account Title Debits Credits Cash 33,800 Accounts receivable 41,800 Supplies 2,400 Inventory 61,800 Notes receivable 21,800 Interest receivable 0 Prepaid rent 1,800 Prepaid insurance 7,800 Office equipment 87,200 Accumulated depreciation 32,700 Accounts payable 32,800 Salaries payable 0 Notes payable 51,800 Interest payable 0 Deferred sales revenue 2,900...
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's...
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below.     Account Title Debits Credits Cash 32,000 Accounts receivable 40,600 Supplies 1,800 Inventory 60,600 Notes receivable 20,600 Interest receivable 0 Prepaid rent 1,200 Prepaid insurance 6,600 Office equipment 82,400 Accumulated depreciation 30,900 Accounts payable 31,600 Salaries payable 0 Notes payable 50,600 Interest payable 0 Deferred sales revenue 2,300...
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's...
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below.     Account Title Debits Credits Cash 31,400 Accounts receivable 40,200 Supplies 1,600 Inventory 60,200 Notes receivable 20,200 Interest receivable 0 Prepaid rent 1,000 Prepaid insurance 6,200 Office equipment 80,800 Accumulated depreciation 30,300 Accounts payable 31,200 Salaries payable 0 Notes payable 50,200 Interest payable 0 Deferred sales revenue 2,100...
Pastina Company sells various types of pasta to grocery chains as private label brands. The company’s...
Pastina Company sells various types of pasta to grocery chains as private label brands. The company’s reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Account Title Debits Credits Cash 35,000 Accounts receivable 42,600 Supplies 2,800 Inventory 62,600 Notes receivable 22,600 Interest receivable 0 Prepaid rent 2,200 Prepaid insurance 7,300 Office equipment 90,400 Accumulated depreciation 33,900 Accounts payable 33,600 Salaries payable 0 Notes payable 52,600 Interest payable 0 Deferred sales revenue 3,300 Common...
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's...
Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below.     Account Title Debits Credits Cash 31,400 Accounts receivable 40,200 Supplies 1,600 Inventory 60,200 Notes receivable 20,200 Interest receivable 0 Prepaid rent 1,000 Prepaid insurance 6,200 Office equipment 80,800 Accumulated depreciation 30,300 Accounts payable 31,200 Salaries payable 0 Notes payable 50,200 Interest payable 0 Deferred sales revenue 2,100...
Required information [The following information applies to the questions displayed below.] Brothers Harry and Herman Hausyerday...
Required information [The following information applies to the questions displayed below.] Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Debit Credit Cash $ 3 Accounts Receivable 5 Supplies 12 Land 0 Equipment 58 Accumulated Depreciation $ 6 Software 16 Accumulated Amortization...
[The following information applies to the questions displayed below.] Brothers Harry and Herman Hausyerday began operations...
[The following information applies to the questions displayed below.] Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Debit Credit Cash $ 4 Accounts Receivable 4 Supplies 11 Land 0 Equipment 68 Accumulated Depreciation $ 7 Software 24 Accumulated Amortization 8 Accounts...
[The following information applies to the questions displayed below.] Brothers Harry and Herman Hausyerday began operations...
[The following information applies to the questions displayed below.] Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Debit Credit Cash $ 2 Accounts Receivable 6 Supplies 13 Land 0 Equipment 57 Accumulated Depreciation $ 5 Software 18 Accumulated Amortization 8 Accounts...
[The following information applies to the questions displayed below.] Brothers Harry and Herman Hausyerday began operations...
[The following information applies to the questions displayed below.] Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (the amounts are rounded to thousands of dollars to simplify): Account Titles Debit Credit Cash $ 2 Accounts Receivable 6 Supplies 13 Land 0 Equipment 57 Accumulated Depreciation $ 5 Software 18 Accumulated Amortization 8 Accounts...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT