I need help on number 5. Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-endis December 31. The unadjusted trial balance as of December 31, 2021, appears below.Account TitleDebitsCreditsCash37,000Accounts receivable44,000Supplies3,500Inventory64,000Notes receivable24,000Interest receivablePrepaid rent3,000Prepaid insurance10,000Office equipment96,000Accumulated depreciationAccounts payableSalaries payableNotes payableInterest payableDeferred sales revenueCommon stockRetained earningsDividendsSales revenueInterest revenueCost of goods soldSalaries expenseRent expenseDepreciation expenseInterest expenseSupplies expenseInsurance expenseAdvertising expenseTotals36,00035,000054,00004,00088,00038,5008,000166,000090,00020,90013,000003,10005,000421,500 421,500 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 are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7thof the following month for salaries earned from the 16th through the end of the month. Salaries earned from December16 through December 31, 2021, were $1,800.3. On October 1, 2021, Pastina borrowed $54,000 from a local bank and signed a note. The note requires interest to bepaid annually on September 30 at 12%. The principal is due in 10 years.4. On March 1, 2021, the company lent a supplier $24,000 and a note was signed requiring principal and interest at 8% tobe paid on February 28, 2022.5. On April 1, 2021, the company paid an insurance company $10,000 for a one-year fire insurance policy. The entire$10,000 was debited to prepaid insurance.6. $1,070 of supplies remained on hand at December 31, 2021.7. A customer paid Pastina $4,000 in December for 1,750 pounds of spaghetti to be delivered in January 2022. Pastinacredited deferred sales revenue.8. On December 1, 2021, $3,000 rent was paid to the owner of the building. The payment represented rent for December2021 and January 2022 at $1,500 per month. The entire amount was debited to prepaid rent.

Introduction: Adjusting journal entries is the product of accrual accounting and complies with the…

Answered: 5. On April 1, 2021, the company paid…

5. On April 1, 2021, the company paid an insurance company $10,000 for a one-year fire insurance policy. The entire $10,000 was debited to prepaid insurance.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 6RE: Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of...

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