Winter Company s balance sheet at December 31 2014 is

presented
Winter Company’s balance sheet at December 31, 2014, is presented below.During January
2015, 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 that 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 fee
chargedWinter 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 on January 3.27 Winter purchased supplies for $1,400
cash.31 Winter paid other operating expenses, $3,718.Adjustment data:1. Interest is recorded
for the month on the note from January 1.2. Bad debts are expected to be 6% of the January
31, 2015, accounts receivable.3. A count of supplies on January 31, 2015, reveals that $560
remains unused.Instructions(You may want to set up T-accounts to determine ending
balances.)(a) Prepare journal entries for the transactions listed above and adjusting entries.
(Include entries for cost of goods sold using the perpetual system.)(b) Prepare an adjusted trial
balance at January 31, 2015.(c) Prepare an income statement and a retained earnings
statement for the month ending January 31, 2015, and a balance sheet as of January 31,2015.
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Winter Company s balance sheet at December 31 2014 is presented
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