Please read the attachment I have provided and then do these questions: Prepare general journal entries to record each transaction. Omit explanations. Post the entries to T-accounts. Prepare an unadjusted trial balance as of December 31, 2013. Prepare th

1 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 November 30, 2013 trial balance is as follows:

PASTINA COMPANY Trial Balance

November 30, 2013 Account Title Debits Credits Cash $ 20,000 Accounts receivable 22,000 Supplies 1,200 Inventory 50,000 Notes receivable 20,000 Office equipment 96,000 Accumulated depr.-office equipment 36,000 Accounts payable 28,000 Salaries payable 2,500 Common stock 140,000 Retained earnings 2,700 Totals $209,200 $209,200

During December 2013, the following transactions occurred:

Dec. 1 Issued common stock in exchange for $20,000 cash. 1 Paid an insurance company $2,760 for a one-year insurance policy. 1 Borrowed $33,000 from a local bank and signed a note. Principal and interest at

10% is to be repaid in six months. 2 Purchased inventory on account for $38,000 (the perpetual inventory system is

used). 7 Paid salaries accrued last month, amounting $2,500. 8 Purchased supplies with $1,000 cash. 10 Sold pasta on account for $15,300. The cost of the pasta was $7,300. 15 Lent a supplier $12,000 and a note was signed requiring principal and interest at

8% to be paid on March 15, 2014. 16 $1,000 in cash dividends were paid to shareholders. 20 Paid employees $2,300 wages for the first half of the month. 22 Sold pasta for $12,300 cash. The cost of the pasta was $6,300. 24 Paid $15,300 to suppliers for the merchandise purchased on December 2. 26 Collected $6,150 on account from customers. 28 Paid $1,000 to the local utility company for December gas and electricity. 30 Paid $4,300 rent for the building. $2,150 was for December rent, and $2,150 for

January rent. 30 A customer paid Pastina $1,300 in December for 1,290 pounds of spaghetti to

be manufactured and delivered in January 2014. 31 Depreciation on the equipment for December is $400.

2 31 $900 of supplies remained on hand at December 31, 2013. 31 Wages earned from December 16 through December 31, 2013, were $2,400.

The employees will be paid on January 7, 2014.

Required:

1. Prepare general journal entries to record each transaction. Omit explanations. 2. Post the entries to T-accounts. 3. Prepare an unadjusted trial balance as of December 31, 2013. 4. Prepare the necessary December 31, 2013, adjusting journal entries. 5. Post the adjusting entries to T-accounts. 6. Prepare an adjusted trial balance. 7. Prepare an income statement and a statement of shareholders’ equity for the month ended

December 31, 2013, and a classified balance sheet as of December 31, 2013. 8. Prepare closing entries and post to the accounts. 9. Prepare a post-closing trial balance.

Presentation Instruction:

1. Please type your answers. You can use Word and Excel to organize your work. I do not accept any hand-written submission.

2. The project will be due on September 4 at beginning of the class. Please print out a hard-copy and turn it in on time. One group only needs to submit one copy. I do not accept any submission via e- mail. I also do not accept any late submission.

3. Please indicate the name of your group members (including netID) in the cover page.