Winter Company's balance sheet at December 31, 2020, is presented below.
During January 2021, the following transactions occurred. Winter uses the perpetual inventory method.
| Jan. 1 | Winter accepted a 4-month, 8% note from Merando Company in payment of Merando's $1,200 account |
| 3 | Winter wrote off as uncollectible the accounts of Inwood Corporation ($450) and Goza Company ($280). |
| 8 | Winter purchased $17,200 of inventory on account. |
| 11 | Winter sold for $28,000 on account inventory hat cost $19,600. |
| 15 | Winter sold inventory that cost $700 to Mark Lauber for $1,000. Lauber charged this amount on his Visa First Bank card. The service free charged Winter by First Bank is 3% |
| 17 | Winter collected $22,900 from customers on account. |
| 21 | Winter paid $14,300 on accounts payable. |
| 24 | Winter received payment in full ($280) from Goza Company on the account written off an January 3. |
| 27 | Winter purchased supplies for $1,400 cash. |
| 31 | Winter paid other operating expenses $3,718. |
Instructions
- Prepare journal entries for the transactions listed above and adjusting entries.(Include entries for cost of goods sold using the perpetual system.
- Prepare an adjusted trial balance at January 31,2021.
- Prepare an income statement and an owner's equity statement for the month ending January 31, 2021, and a classified balance sheet as of January 31, 2021.
Solution
a.
Winter Company
Journal Entries
Journal Entries
Winter Company
Adjusting Journal Entries
Adjusting Journal Entries
Winter Company
Optional T-Accounts
Optional T-Accounts
b.
Winter Company
Adjusted Trial Balance
January 31, 2021
Adjusted Trial Balance
January 31, 2021
c.
Winter Company
Income Statement
For the Month ended January 31, 2021
Income Statement
For the Month ended January 31, 2021
Winter Company
Owner's equity Statement
For the Month ended January 31, 2021
Owner's equity Statement
For the Month ended January 31, 2021
Winter Company
Classified Balance sheet
January 31, 2021
Classified Balance sheet
January 31, 2021
