Comprehensive Problem 9 (Part Level Submission)

Windsor Companys trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described following the trial balance.

	Debit		Credit
Cash	$28,000
Accounts Receivable	35,500
Notes Receivable	9,700
Interest Receivable	0
Inventory	36,400
Prepaid Insurance	3,600
Land	21,800
Buildings	144,000
Equipment	52,000
Patents	9,400
Allowance for Doubtful Accounts			$550
Accumulated DepreciationBuildings			48,000
Accumulated DepreciationEquipment			20,800
Accounts Payable			27,000
Salaries and Wages Payable			0
Unearned Rent Revenue			6,300
Notes Payable (due in 2020)			13,000
Interest Payable			0
Notes Payable (due after 2020)			36,000
Common Stock			36,500
Retained Earnings			59,550
Dividends	14,000
Sales Revenue			902,000
Interest Revenue			0
Rent Revenue			0
Gain on Disposal of Plant Assets			0
Bad Debts Expense	0
Cost of Goods Sold	634,000
Depreciation Expense	0
Insurance Expense	0
Interest Expense	0
Other Operating Expenses	61,300
Amortization Expense	0
Salaries and Wages Expense	100,000
Total	$1,149,700		$1,149,700

Unrecorded transactions:

1.		On May 1, 2020, Windsor purchased equipment for $18,000 plus sales taxes of $1,800 (all paid in cash).
2.		On July 1, 2020, Windsor sold for $3,600 equipment which originally cost $5,100. Accumulated depreciation on this equipment at January 1, 2020, was $1,800; 2020 depreciation prior to the sale of the equipment was $450.
3.		On December 31, 2020, Windsor sold on account $5,400 of inventory that cost $3,500.
4.		Windsor estimates that uncollectible accounts receivable at year-end is $4,000.
5.		The note receivable is a one-year, 8% note dated April 1, 2020. No interest has been recorded.
6.		The balance in prepaid insurance represents payment of a $3,600 6-month premium on September 1, 2020.
7.		The buildings are being depreciated using the straight-line method over 30 years. The salvage value is $36,000.
8.		The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost.
9.		The equipment purchased on May 1, 2020, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,400.
10.		The patent was acquired on January 1, 2020, and has a useful life of 10 years from that date.
11.		Unpaid salaries and wages at December 31, 2020, total $2,100.
12.		The unearned rent revenue of $6,300 was received on December 1, 2020, for 3 months rent.
13.		Both the short-term and long-term notes payable are dated January 1, 2020, and carry a 9% interest rate. All interest is payable in the next 12 months.

A.) Prepare Journal entries for the transactions listed above.

B.) Prepare an updated December, 31, 2020 trial Balance.