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.

Instructions

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. $($Due to time constraints, an adjusted trial balance is not required.$)$ Round all computations to the nearest dollar.

$($a$)$ Winsor determined that one percent of sales will become uncollectible.

$($b$)$ Depreciation is computed using the straight$-$line method, with an eight$-$year life and $$1,000$ salvage value.

$($c$)$ Salesmen are paid commissions of $10\%$ of sales. Commissions on sales for the last week of December have not been paid.

$($d$)$ The note was issued on October $1,$ bearing interest at $8\%,$ due Feb. $1,2023.$

$($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 $$800/$mo$.$ This provision has been complied with as of Dec. $31,2022.$

Winsor Corporation

Work Sheet

For the Year Ended December $31,2022$

Trial Balance Adjustments Income Statement Balance Sheet

Accounts Dr$.$ Cr$.$ Dr$.$ Cr$.$ Dr$.$ Cr$.$ Dr$.$ Cr$.$

Cash $12,400$

Equity Invest. $4,050$

Accounts Rec. $50,000$

Allow. for D$.$ A$.420$

Inventory $16,800$

Supplies $1,040$

Equipment $65,000$

Accum. Depr.$-$Equip. $9,500$

Accounts Payable $4,400$

Notes Payable $10,000$

Common Stock $40,000$

Ret. Earnings $29,690$

Cost of Goods Sold $225,520$

Salaries and

wagesExp. $20,800$

Sales Comm. Exp. $29,000$

Rent Expense $7,200$

Misc. Expense $2,200$

Sales Revenue $340,000$

Totals $434,010434,010$