The trial balance of winsor corporation is reproduced

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Reference no: EM13700981

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, 2008.
(e) A physical inventory of supplies indicated $440 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, 2007.

Winsor Corporation
Work Sheet
For the Year Ended December 31, 2007

Trial Balance Adjustments Income Statement Balance Sheet
Accounts Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 12,400
Trading Sec. 4,050
Accounts Rec. 50,000
Allow. for D. A. 420
Mdse. Inventory 16,800
Supplies 1,040
Equipment 45,000
Accum. Depr.-Eq. 9,500
Accounts Payable 4,400
Notes Payable 5,000
Common Stock 40,000
Ret. Earnings 34,690
Cost of Goods Sold 225,520
Office Salaries Exp. 20,800
Sales Comm. Exp. 29,000
Rent Expense 7,200
Misc. Expense 2,200
Sales 320,000
Totals 414,010 414,010

Reference no: EM13700981

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