The trial balance of Winsor Corporation is reproduced on the following page The information below is relevant to the preparation of adjusting entries needed to both properly match revenues and expenses for the period and reflect the proper balances in the real and nominal accounts As the accountant for Winsor Corporation, you are to prepare adjusting entries based on the following data, entering the adjustments on the work sheet and completing the additional columns with respect to the income statement and balance sheet Carefully key your adjustments and label all items (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 15 of sales Commissions on sales for December have not been paid (d) The note was issued on October 1, bearing interest at 8 , due Feb 1, 2018 (e) A physical inventory of supplies indicated $ 350 of supplies currently in stock (f) Provisions of a lease contract specify payments must be made one month in advance, with monthly payments at $ 790 mo This provision has been complied with as of Dec 31, 2017 Winsor Corporation Work Sheet For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017December 31, 2017 Trial Balance Adjustments Income Statement Balance Sheet Accounts Debit Credit Debit Credit Debit Credit Debit Credit Cash $12,210 $ $ $ $ $ $ Equity Investment 4,220 Accounts Receivable 28,660 Allowance for Doubtful Accounts $ 380 Inventory 15,590 Supplies 1,070 Equipment 66,120 Accumulated DepreciationEquipment 9,100 Accounts Payable 4,150 Notes Payable 10,100 Common Stock 40,000 Retained Earnings 27,400 Sales Revenue 338,400 Cost of Goods Sold 232,460 Salaries and Wages Expense 21,270 Sales Comm Exp 38,660 Rent Expense 7,110 Miscellaneous Expenses 2,160 Totals $429,530 $429,530 Bad Debt Expense Depreciation Expense Sales Com Exp Pay Interest Expense Interest Payable Supplies Expense Prepaid Rent Totals $ $ Net Income Totals $ $ $ $

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jan 28, 2021

The trial balance of Winsor Corporation is reproduced on the following page. The information below is relevant to the preparation of adjusting entries needed to

The trial balance of Winsor Corporation is reproduced on the following page. The information below is relevant to the preparation of adjusting entries needed to both properly match revenues and expenses for the period and reflect the proper balances in the real and nominal accounts.

As the accountant for Winsor Corporation, you are to prepare adjusting entries based on the following data, entering the adjustments on the work sheet and completing the additional columns with respect to the income statement and balance sheet. Carefully key your adjustments and label all items.

(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 15% of sales. Commissions on sales for December have not been paid.
(d)		The note was issued on October 1, bearing interest at 8%, due Feb. 1, 2018.
(e)		A physical inventory of supplies indicated $ 350 of supplies currently in stock.
(f)		Provisions of a lease contract specify payments must be made one month in advance, with monthly payments at $ 790/mo. This provision has been complied with as of Dec. 31, 2017.

Winsor Corporation Work Sheet For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017December 31, 2017
	Trial Balance		Adjustments		Income Statement		Balance Sheet
Accounts	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$12,210		$	$	$	$	$	$
Equity Investment	4,220
Accounts Receivable	28,660
Allowance for Doubtful Accounts		$ 380
Inventory	15,590
Supplies	1,070
Equipment	66,120
Accumulated Depreciation—Equipment		9,100
Accounts Payable		4,150
Notes Payable		10,100
Common Stock		40,000
Retained Earnings		27,400
Sales Revenue		338,400
Cost of Goods Sold	232,460
Salaries and Wages Expense	21,270
Sales Comm. Exp.	38,660
Rent Expense	7,110
Miscellaneous Expenses	2,160
Totals	$429,530	$429,530
Bad Debt Expense
Depreciation Expense
Sales Com. Exp Pay.
Interest Expense
Interest Payable
Supplies Expense
Prepaid Rent
Totals			$	$
Net Income
Totals					$	$	$	$