Pastina Company manufactures and 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, 2013, appears below.

Pastina Company manufactures and 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, 2013, appears below.

  

Account Title	Debits			Credits
Cash		21,000
Accounts receivable		31,000
Supplies		1,600
Inventory		51,000
Note receivable		11,000
Interest receivable		0
Prepaid rent		2,200
Prepaid insurance		0
Equipment		88,000
Accumulated depreciation—equipment					33,000
Accounts payable					22,000
Wages payable					0
Note payable					41,000
Interest payable					0
Unearned revenue					0
Common stock					51,000
Retained earnings					19,120
Sales revenue					139,000
Interest revenue					0
Cost of goods sold		61,000
Wage expense		18,000
Rent expense		12,100
Depreciation expense		0
Interest expense		0
Supplies expense		1,200
Insurance expense		4,920
Advertising expense		2,100
Totals		305,120			305,120

  

Information necessary to prepare the year-end adjusting entries appears below.

      

1.	Depreciation on the equipment for the year is $11,000.
2.	Employee wages are paid twice a month, on the 22nd for wages earned from the 1st through the 15th, and on the 7th of the following month for wages earned from the 16th through the end of the month. Wages earned from December 16 through December 31, 2013, were $1,600.
3.	On October 1, 2013, Pastina borrowed $41,000 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, 2013, the company lent a supplier $11,000 and a note was signed requiring principal and interest at 9% to be paid on February 28, 2014.
5.	On April 1, 2013, the company paid an insurance company $4,920 for a two-year fire insurance policy. The entire $4,920 was debited to insurance expense.
6.	$700 of supplies remained on hand at December 31, 2013.
7.	A customer paid Pastina $1,100 in December for 1,230 pounds of spaghetti to be manufactured and delivered in January 2014. Pastina credited sales revenue.
8.	On December 1, 2013, $2,200 rent was paid to the owner of the building. The payment represented rent for December and January 2014, at $1,100 per month.

    

Required:

Prepare the necessary December 31, 2013, adjusting journal entries. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.Do not round intermediate calculations. Round your answers to the nearest dollar amount.)   Explanation: Interest expense ($41,000 × 12% × 3/12) = $1,230 Interest receivable ($11,000 × 9% × 10/12) = $825 Prepaid insurance ($4,920 × 15/24) = $3,075 Supplies expense ($1,600 − $700) = $900