Intermediate Accounting: P2-3 Pastina Company manufactures and sells various types

Intermediate Accounting 
Problem 2-3 Adjusting entries 
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, 2011, appears below. 
  Account Title Debits Credits 
  Cash 30,000 
  Accounts receivable 40,000 
Allowance for Doubtful Accounts 3,000 
  Supplies 1,500 
  Inventory 60,000 
  Note receivable 20,000 
  Interest receivable - 
  Prepaid rent 2,000 
  Prepaid insurance - 
  Equipment 80,000 
  Accumulated depreciation-equipment 30,000 
  Accounts payable 28,000 
  Wages payable - 
  Note payable 50,000 
  Interest payable - 
  Unearned revenue - 
  Common stock 60,000 
  Retained earnings 24,500 
  Sales revenue 148,000 
  Interest revenue - 
  Cost of goods sold 70,000 
  Wage expense 18,900 
  Rent expense 11,000 
  Depreciation expense - 
  Interest expense - 
  Supplies expense 1,100 
  Insurance expense 6,000 
  Advertising expense 3,000 
          Totals $343,500 $343,500 

Information necessary to prepare the year-end adjusting entries appears below. 
1. Depreciation on the equipment for the year is $10,000. 
2. The company estimates that of the $40,000 in accounts receivable outstanding at year-end, $5,500 probably will not be collected. 
3. 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, 2011, were $1,500. 
4. On October 1, 2011, Pastina borrowed $50,000 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. 
5. On March 1, 2011, the company lent a supplier $20,000 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2012. 
6. On April 1, 2011, the company paid an insurance company $6,000 for a two-year fire insurance policy. The entire $6,000 was debited to insurance expense. 
7. $800 of supplies remained on hand at December 31, 2011. 
8. A customer paid Pastina $2,000 in December for 1,500 pounds of spaghetti to be manufactured and delivered in January 2012. Pastina credited sales revenue. 
9. On December 1, 2011, $2,000 rent was paid to the owner of the building. The payment represented rent for December and January 2012, at $1,000 per month. 

Required: 
Prepare the necessary December 31, 2011, adjusting journal entries.
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