Question 1 (20 Marks) The work sheet and trial balance of Santos 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. Instructions As the accountant for Santos, 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 statement of financial position. Carefully key your adjustments and label all items. Round all calculations to the nearest dollar 1. After an aging of accounts receivable, it was determined that three percent of the accounts will become uncollectible, 2 Depreciation is calculated using the straight-line method, with an eight-year life and $1,000 residual (salvage) value. 3 Salesmen are paid commissions of 11% of sales. Commissions on sales for the last week of December have not been paid. 4 The note was issued on October 1, 2013, with interest at 8%, due Feb 1, 2014 5. A physical inventory of supplies indicated $280 of supplies currently on hand 6. Provisions of the company's lease contract specify rent payments must be made one month in advance, with monthly payments of $900/mo. This provision has been complied with as of Dec. 31, 2013 Protected View Assignment 2019 Accounting Information System and Statement of Financial Position (1) Protected View. Last saved by user Mailings Review View Help Foxit PDF Tell me what you want to do uses. Unless you need to edit, it's safer to stay in Protected View Enable Editing Santos Corporation Work Sheet Year ended December 31, 2013 Talance Adjustments Income Statement State of in position Market Securities Accounts Recente Alow for DA 5.400 4060 40.000 15.900 Supplies 1040 500 Equipment Acun Dar-E Accounts Paya Nos Payable Commons Retained Earnings Cost of Goods Sold 238.520 20.800 Sa Commission Rant Expense Expense Total 30.109 421011