You are the staff accountant for Marina Corp, and your task is to enter the treatment of each adjustment within the Adjustents column, along with providing the final balances for the Income Statement and Balance Sheet within the Trial Balance. In addition, you must journalize these adjustments within the General Ledger.

Below are the transactions you are responsible for adjusting: 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, 2013. 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, 2012.

Marina Company
Work Sheet
For the Year Ended December 31, 2012
	Trial Balance		Adjustments			Income Statement			Balance Sheet
Accounts	Dr.	Cr.	Ref.	Dr.	Cr.	Ref.	Dr.	Cr.	Ref.	Dr.	Cr.
Cash	$ 12,400
Equity Invest.	4,050
Accounts Receivable	50,000
Allowance for Doubtful Accounts		420	(a)		3,400
Inventory	16,800
Supplies	1,040
Equipment	65,000
Accumulated. Depreciation.-Equip.		9,500
Accounts Payable		4,400
Notes Payable		10,000
Common Stock		40,000
Retained Earnings		29,690
Cost of Goods Sold	225,520
Salaries and Wages Exp.	20,800
Sales Commission Exp.	29,000
Rent Expense	7,200
Misc. Expense	2,200
Sales Revenue		340,000
Totals	$ 434,010	$ 434,010		$ -	$ 3,400		$ -	$ -		$ -	$ -
Bad Debt Expense			(a)	3,400
Depreciation Expense
Salaries Commission Expense Payable
Interest Expense
Interest Payable
Supplies Expense
Prepaid Rent
Totals				$ 3,400	$ -		$ -	$ -		$ -	$ -
Net Income
Totals				$ 3,400	$ -		$ -	$ -		$ -	$ -