The trial balance of Winsor Corporation is as follow. 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.
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.
(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 15% of sales. Commissions
on sales for December have not been paid.(d)The note was issued on
October 1, bearing interest at 9%, due Feb. 1, 2015.(e)A physical
inventory of supplies indicated $380 of supplies currently in
stock.(f)Provisions of a lease contract specify payments must be
made one month in advance, with monthly payments at $770/mo. This
provision has been complied with as of Dec. 31, 2014.
The question does not contain the trial balance, yet the effort has been made to provide the journal entries with formula for the amount in the debit and credit coulmns.
Get Answers For Free
Most questions answered within 1 hours.