(a) Winsor determined that one percent of sales will become uncollectible (b) De
ID: 2410191 • Letter: #
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(a) Winsor determined that one percent of sales will become uncollectible (b) Depreciation is computed using the straight-line method, with an ten-year life and $1,000 salvage value (c) Salesmen are paid commissions of 14% of sales. Commissions on sales for December have not been paid (d) The note was issued on October 1, bearing interest at 7%, due Feb. 1, 2018. (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 $850/mo. This provision has been complied with as of Dec. 31, 2017. Winsor Corporation Work Sheet Trial Balance Adjustments Income Statement Balance Sheet Accounts Debit Credit Debit Credit Debit Credit Debit Credit Cash $12,680 3,990 31,380 Equity Investment Accounts Receivable Allowance for Doubtful Accounts Inventory Supplies Equipment Accumulated Depreciation-Equipment Accounts Payable Notes Payable Common Stock Retained Earnings Sales Revenue Cost of Goods Sold Salaries and Wages Expense Sales Comm. Exp. Rent Expense Miscellaneous Expenses $390 17,990 1,060 67,400 9,400 4,150 10,700 40,000 30,820 343,700 235,750 21,100 38,110 7,650 2,050 $439,160 $439,160 Totals Bad Debt Expense Depreciation Expense Sales Com. Exp Pay Interest Expense Interest Payable Supplies Expense Prepaid Rent Totals Net Income TotalsExplanation / Answer
WORKSHEET 31-Dec-17 Account Names Unadjusted Trial Balance Adjustments Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Cash 12,680 12,680 Equity Investment 3,990 3,990 Accounts Receivable 31,380 31,380 Allowance for doubtful debt 390 3437 3827 Inventory 17,990 17,990 Office Supplies 1,060 720 340 Equipment 67400 67400 Accumulated Depreciation 9,400 6640 16,040 Accounts payable 4150 4,150 Note payable 10,700 10,700 Common Stock 40,000 40,000 Retained earnings 30820 30820 Sales revenue 343,700 343,700 Cost of Goods sold 235,750 235,750 Saalries and wages expense 21,100 21,100 Sales comm. 38110 10008 48118 Rent Expense 7,650 850 6,800 Misc expense 2,050 2,050 Totals 439,160 439160 Bad ddebts expense 3437 3,437 Depreciation 6640 6,640 Sales comm expense payable 10008 10008 Interest expense 187.25 187 Interest payable 187.25 187.25 Supplies expense 720 720 Prepaid rent 850 850 Total 21,842 21,842 324,802 343,700 134,630 115,732 Net Income 18,898 18,898 Total 343700 343700 134630 134630
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