Question

Problem 5-06A The trial balance of Windsor Wholesale Company contained the following accounts shown at December 31, the end of the company's fiscal year Credit Land $ 60,900 WINDSOR WHOLESALE COMPANY Trial Balance December 31, 2022 Debit Cash $ 30,300 Accounts Receivable 36,500 Inventory 68,700 92,900 Buildings 200,800 Accumulated Depreciation-Buildings Equipment 84,400 Accumulated Depreciation-Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Dividends 10,900 Sales Revenue Sales Discounts 6,900 Cost of Goods Sold 710,800 Salaries and Wages Expense 52,200 Utilities Expense 12,200 Maintenance and Repairs Expense 9,800 Advertising Expense 6,100 Insurance Expense 5,700 $1,328,200 41,400 55,600 18,400 160,800 68,100 923,000 $1,328,200 Adjustment data: 1. 2. 3. Depreciation is $8,900 on buildings and $7,900 on equipment. (Both are operating expenses.) Interest of $5,400 is due and unpaid on notes payable at December 31. Income tax due and unpaid at December 31 is $24,900. Other data: $15,900 of the notes payable are payable next year.

Answer 1

Classified Balance Sheet is as prepared below:

Windsor Wholesale Company
Balance Sheet
December 31, 2022
Particulars	Amount ($)	Amount ($)
ASSETS
Current Assets:
Cash	30,300
Account Receivable	36,500
Inventory	68,700
Total Current Assets		135,500
Property, plant and Equipment
Land		92,900
Buildings	200,800
Less: Accumulated depreciation	-69,800	131,000
Equipment	84,400
Less: Accumulated depreciation	-49,300	35,100
Total Assets		394,500
LIABILITIES AND STOCKHOLDERS EQUITY
Liabilities :
Current Liabilities
Notes Payable	15,900
Accounts Payable	18,400
Income tax payable	24,900
Interest Payable	5,400
Total Current Liabilities		64,600
Total long term liabilities:
Long term Notes Payable	39700	39,700
Total liabilities		104,300
Total Stockholders' Equity
Common Stock	160,800
Retained Earnings	129,400
		290,200
Total Stockholders' Equity		290,200
Total Liabilities and stockholders’ equity		394,500

Working:

Windsor Wholesale Company
Income Statement
For the Year Ended December 31
Particulars	Amount ($)	Amount ($)
Sales Revenue		923,000
Less: Sales discount	6,900
Net Sales Revenue		916,100
Less:
Cost of goods sold	710,800
Salaries and Wages Expense	52,200
Utilities Expense	12,200
Maintenance and Repairs Expense	9,800
Advertising Expense	6,100
Insurance Expense	5,700
Depreciation Expense-Buildings	8,900
Depreciation Exp-Equipment	7,900
Interest Expense	5,400
Total Operating Expenses		819,000
Operating Income		97,100
Income tax expense		24,900
Net income		72,200

Windsor Wholesale Company
Statement of Retained earnings
For the Year Ended December 31
Particulars	Amount ($)	Amount ($)
Opening balance		68,100
Add:
Net income	72,200
Less:
Dividend	10,900
Closing balance		129,400