Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(a) Winsor determined that one percent of sales will become uncollectible (b) Depreciation is computed using the straight-line method, with an ten-year life and $1,000
(a) Winsor determined that one percent of sales will become uncollectible (b) Depreciation is computed using the straight-line method, with an ten-year life and $1,000 salvage value (c) Salesmen are paid commissions of 14% of sales. Commissions on sales for December have not been paid (d) The note was issued on October 1, bearing interest at 7%, due Feb. 1, 2018. (e) A physical inventory of supplies indicated $340 of supplies currently in stock. (f) Provisions of a lease contract specify payments must be made one month in advance, with monthly payments at $850/mo. This provision has been complied with as of Dec. 31, 2017. Winsor Corporation Work Sheet Trial Balance Adjustments Income Statement Balance Sheet Accounts Debit Credit Debit Credit Debit Credit Debit Credit Cash $12,680 3,990 31,380 Equity Investment Accounts Receivable Allowance for Doubtful Accounts Inventory Supplies Equipment Accumulated Depreciation-Equipment Accounts Payable Notes Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Salaries and Wages Expense Sales Comm. Exp. Rent Expense Miscellaneous Expenses $390 17,990 1,060 67,400 9,400 4,150 10,700 40,000 30,820 343,700 235,750 21,100 38,110 7,650 2,050 $439,160 $439,160 Totals Bad Debt Expense Depreciation Expense Sales Com. Exp Pay Interest Expense Interest Payable Supplies Expense Prepaid Rent Totals Net Income Totals
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started