Ten-Column Work Sheet The Work Sheet and Trial Balance of Santos Corporation Is

question 43

Essay

Ten-column work sheet
The work sheet and trial balance of Santos Corporation is reproduced below. The information given 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 permanent and temporary accounts.
Instructions
As the accountant for Santos, 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 statement of financial position. Carefully key your adjustments and label all items. (An adjusted trial balance is not required, but is included in the solution.) Round all calculations to the nearest dollar.
(a) After an aging of accounts receivable, it was determined that three percent of the accounts will become uncollectible.
(b) Depreciation is calculated using the straight-line method, with an eight-year life and $ 1,000 residual (salvage) value.
(c) Salesmen are paid commissions of 11% of sales. Commissions on sales for the last week of December have not been paid.
(d) The note was issued on October 1, 2020, with interest at 8%, due Feb. 1, 2021.
(e) A physical inventory of supplies indicated $ 280 of supplies currently on hand.
(f) Provisions of the company's lease contract specify rent payments must be made one month in advance, with monthly payments of $ 900/mo. This provision has been complied with as at Dec. 31, 2020.

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Definitions:

Group's Development

The stages through which a group progresses, often including forming, storming, norming, performing, and adjourning.

Group Process

The dynamics and interactions that occur within a group as it seeks to achieve its objectives, affecting its performance and member satisfaction.

Orderly Interplay

A harmonious or organized interaction among elements in a system, ensuring stability and balance.

Ineffective Group

A group that fails to achieve its goals or fulfill its purpose due to lack of coordination, poor communication, or other factors undermining its effectiveness.