You have been assigned to examine the financial statements of Windsor Company for the year ended December 31,2025 . You discover the folfowing situations. 1. Depreciation ot $3.200 for 2025 on delivery vehicles was not recorded. 2. The physical imventory count on December 31,2024 , Improperfy exctuded merchandise costing $20,400 that had been temporarily stored in a public warehouse. Windsor uses a periodic inventory system. 3. A collection of $5,100 on account from a customer recelved on December 31,2025, was not recorded until Jannary 2, 2026. 4. In 2025, the company sold for $3,400 fully deprechted equipment that originally cost $23,000. The company credited the proceeds from the sale to the Equipment account. 5. During November 2025, a competitor company filed a patent - infringement suit against Windsor claiming damages of $198,000. The company's legal counsel has indicated that an unfavorable verdict is probable and a reasonable estimate of the court's award to the competitor is $136,300. The company has not recorded or disclosed this situation in the financial statements. 6. Windsor has a portfolio of trading investments. No entry has been made to adjust to market. Information on cost ind fair value is as follows. 7. At December 31,2025 , an analysis of payroll information shows accrued salaries of $11,800. The Salaries and Wages Payable account had a balance of $16,200 at December 31,2025 , which was unchanged fromits balance at December 31 , 2024. 8. A large piece of equipment was purchased on January 3, 2025, for $40,200 and was charged to Maintenance and Repairs Expense. The equipment is estimated to have a service life of 8 years and no residual value. Windsor normally uses the straight-line depreciation method for this type of equipment 9. A $11,700 insurance premium paid on July 1,2024 , for a policy that expires on June 30,2027 , was charged to Insurance Expense: 10. A trademarkwas acquired at the beginning of 2024 for $53,800. No amortization has been recorded sinceits acquisition. The maximum allowable amortization period is 10 years. Assume the trial balance has been prepared but the books have not been closed for 2025. Assuming all amounts are material, prepare journal entries showing the adjustments that are required. (Ignore income tax considerations.) (Credit account titles are automatically indented when the amount is entered, Do not indent monually, if no entry Is required, setect "No Entry" for the occount tities and enter ofor the amounts. List all debit entries before credit entries.) 7. 8. 9. 10
