Winter Company's balance sheet at December 31, 2018, is presented below. Cash Accounts receivable Allowance for doubtful accounts Inventory WINTER COMPANY Balance Sheet December 31, 2018 $13,100 Accounts payable 20,100 Common stock (800) Retained earnings 8,500 $40,900 $7,800 20,000 13,100 $40,900 During January 2019, the following transactions occurred. Winter uses the perpetual inventory method. Jan. 1 3 8 11 15 Winter accepted a 4-month, 8% note from Merando Company in payment of Merando's $1,200 account. Winter wrote off as uncollectible the accounts of Inwood Corporation ($400) and Goza Company ($300). Winter purchased $18,000 of inventory on account. Winter sold for $27,200 on account inventory that cost $19,800. Winter sold inventory that cost $800 to Mark Lauber for $1,000. Lauber charged this amount on his Visa First Bank card. The service fee charged Winter by First Bank is 3%. Winter collected $22,400 from customers on account. Winter paid $13,800 on accounts payable. Winter received payment in full ($300) from Goza Company on the account written off on January 3. Winter purchased supplies for $1,500 cash. Winter paid other operating expenses, $4,000. 17 21 24 27 31 Adjustment data: 1. 2. Interest is recorded for the month on the note from January 1. Bad debts are expected to be 6% of the January 31, 2019, accounts receivable. A count of supplies on January 31, 2019, reveals that $500 remains unused. 3. Prepare journal entries for the transactions listed above. (Include entries for cost of goods sold using the perpetual system.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 1 Notes Receivable 1200 Accounts Receivable 1200 Jan. 3 Allowance for Doubtful Accounts 700 Accounts Receivable 700 Jan. 8 Inventory 18000 Accounts Payable 18000 Jan. 11 v Accounts Receivable 27200 Sales Revenue 27200 (To record sales) Cost of Goods Sold 19800 19800 Inventory (To record cost of goods sold) Jan. 15 Cash 970 Service Charge Expense 30 Sales Revenue 1000 (To record sales and service charges) Cost of Goods Sold 800 Cost of Goods Sold 800 800 Inventory (To record cost of goods sold) Jan. 17 7 Cash 22400 Accounts Receivable 22400 Jan. 21 Accounts Payable 13800 Cash 13800 Jan. 24 V Accounts Receivable 300 Allowance for Doubtful Accounts 300 (To reverse allowance for doubtful debts) Cash 300 Accounts Receivable 300 (To record cash received from Rios Company) Jan. 27 v Supplies 1500 Cash 1500 Jan. 31 v Other Operating Expenses 4000 Cash 4000 Prepare adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 31 (1) Interest Receivable 8 8 (2) Bad Debts Expense Allowance for Doubtful Accounts (3) Supplies Expense Supplies Prepare an adjusted trial balance at January 31, 2019. WINTER COMPANY Adjusted Trial Balance January 31, 2019 Debit Credit $ $ $ Prepare an income statement for the month ending January 31, 2019. WINTER COMPANY Income Statement $ $ Prepare a retained earnings statement for the month ending January 31, 2019. WINTER COMPANY Retained Earnings Statement $ as of January 31, 2019. (List current assets in order of liquidity.) Dividends Expenses Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, January 31 Revenues Total Expenses Total Revenues WINTER COMPANY Balance Sheet Assets $ $ Assets $ $ $ Liabilities and Stockholders' Equity $ $ $