I can't seem to figure out the "incomplete" sections. Help would be appreciated!
! Required information (The following information applies to the questions displayed below.] Wally's Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows: Cash 4,850 $20,120 Unearned Revenue (25 units) $ 2,300 Accounts Receivable $ 11,150 Accounts Payable (Jan Rent) $ Allowance for Doubtful Accounts $(1,400) Notes Payable 15,000 $ Inventory (30 units) $ 6,000 $ 2,700 Contributed Capital Retained Earnings - Feb 1, 2012 $ 4,420 . WWC establishes a policy that it will sell inventory at $170 per unit. In January, WWC received a $4,850 advance for 25 units, as reflected in Unearned Revenue. WWC's February 1 inventory balance consisted of 30 units at a total cost of $2,700. WWC's note payable accrues interest at a 12% annual rate. WWC will use the FIFO inventory method and record COGS on a perpetual basis. February Transactions Included in WWC's February 1 Accounts Receivable balance is a $1,400 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and 02/01 cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,400 balance to a note, and Kit Kat signs a 6-month note, at 12% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012. WWC paid a $550 insurance premium covering the month of February. The 02/02 amount paid is recorded directly as an expense. 02/05 An additional 140 units of inventory are purchased on account by WwC for $10,500 - terms 2/15, n30. 02/05 WWC paid Federal Express $420 to have the 140 units of inventory delivered overnight. Delivery occurred on 02/06. 02/10 Sales of 110 units of inventory occurred during the period of 02/07 - 02/10. The sales terms are 2/10, net 30. 02/15 The 25 units that were paid for in advance and recorded in January are delivered to the customer. 10 units of the inventory that had been sold on 2/10 are returned to WWC. The 02/15 units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase. 02/16 WWC pays the first 2 weeks wages to the employees. The total paid is $3,200. Paid in full the amount owed for the 2/05 purchase of inventory. WWC records 02/17 purchase discounts in the current period rather than as a reduction of inventory costs. 02/18 Wrote off a customer's account in the amount of $1,500. $4,600 of rent for January and February was paid. Because all of the rent will 02/19 soon expire, the February portion of the payment is charged directly to expense. Collected $9,000 of customers' Accounts Receivable. Of the $9,000, the 02/19 discount was taken by customers on $5,500 of account balances; therefore WWC received less than $9,000. WWC recovered $500 cash from the customer whose account had previously 02/26 been written off (see 02/18). 02/27 A $450 utility bill for February arrived. It is due on March 15 and will be paid then. 02/28 WWC declared and paid a $450 cash dividend. Adjusting Entries: 02/29 Record the $3,200 employee salary that is owed but will be paid March 1. WWC decides to use the aging method to estimate uncollectible accounts. WWC 02/29 determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts. 02/29 Record February interest expense accrued on the note payable. 02/29 Record one month's interest earned Kit Kat's note (see 02/01). Required: 1-a. Prepare all February journal entries and adjusting entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 14 Feb. 19a Accounts Payable Rent Expense Cash 2,300 2,300 4,600 15 Feb. 19b Cash 8,890 Sales Discounts 110 Accounts Receivable 9,000 16 Feb. 26a > 500 Accounts Receivable Allowance for Doubtful Accounts 500 17 Feb. 26b Cash 500 Accounts Receivable 500 18 Feb. 27 450 Utility Expense Accounts Payable 450 19 Feb. 28 450 Dividends Declared Cash 450 20 Feb. 29a 3,200 o Wages Expense Wages Payable 3,200 21 Feb. 29b Bad Debt Expense 900 > Allowance for Doubtful Accounts 900 22 Feb. 29c 150 Interest Expense Interest Payable 150 23 Feb. 29d Interest Receivable 14 Interest Revenue 14 1-b. Post all February entries (transactions and adjustments) to the T-accounts. X Answer is not complete. Cash Accounts Receivable 20,120 Beg. bal. 11,150 Beg. bal. Feb. 19b Feb. 26b 8,890 550 Feb. 2 1,700 Feb. 150 500 420 Feb. 6 18,700 1,500 Feb. 18 Feb. 10a Feb. 26a 3,200 Feb. 16 500 9,000 Feb. 19b Feb. 26b 10,290 Feb. 17 OOOOO 500 4,600 1,400 Feb. 1 Feb. 19a Feb. 28 450 End. bal. 10,000 End. bal. 16,250 Inventory Allowance for Doubtful Accounts Beg. bal. 1,400 Feb. Feb. 18 1,500 500 26a Beg. bal. 2,700 Feb. 5 10,500 210 Feb. 17 Feb. 900 Feb. 6 0 420 29b 8,940 Feb. 10b Feb. 15b Feb. 15c 780 1,950 End. bal. 1,300 End. bal. 3,300 Notes Receivable Interest Receivable Beg. bal. Beg. bal. Feb. 29d Feb. 1 1,400 14 End. bal. 1,400 End. bal. 14 Accounts Payable Unearned Revenue 2,300 4,850 Beg. bal. Feb. 19a Beg. bal. Feb. 15a 2,300 10,500 Feb. 5 4,850 Feb. 17 10,500 450 Feb. 27 End. bal. 450 End. bal. Wages Payable Interest Payable Beg. Beg. bal. bal. 3,200 Feb. 29a 150 Feb. 29c End. bal. 3,200 End. bal. 150 Notes Payable Contributed Capital Beg. bal. 15,000 Beg. bal. 6,000 End. bal. 15,000 End. bal. 6,000 Retained Earnings Dividends Declared Beg. bal. 4,420 Beg. bal. Feb. 28 450 End. bal. 4,420 End. bal. 450 Sales Revenue Sales Returns & Allowances Beg. bal. Beg. bal. Feb. 15d 18,700 1,700 Feb. 10a Feb. 15a 4,850 End. bal. 23,550 End. bal. 1,700 Sales Discounts Cost of Goods Sold Beg. bal. Feb. 19b 110 Beg. bal. Feb. 10b Feb. 15b 8,940 780 Feb. 15c 1,950 End. bal. 110 End. bal. 10,110 Interest Revenue Bad Debt Expense Beg. bal. Beg. bal. Feb. 29b 14 Feb. 29d > 900 End. bal. 14 End. bal. 900 Insurance Expense Interest Expense Beg. bal. Beg. bal. Feb. 29c Feb. 2 550 150 End. bal. 550 End. bal. 150 Rent Expense Utility Expense Beg. bal. Beg. bal. Feb. 19a 2,300 Feb. 27 450 End. bal. 2,300 End. bal. 450 Wages Expense Beg. bal. Feb. 29a Feb. 16 3,200 3,200 6,400 1-c. Prepare the financial statements at the end of February. (Balance Sheet only, items to be deducted must be indicated with a negative amount.) Answer is not complete. WWC, Inc. Income Statement For the Month Ended February 29 Revenues Sales Revenue $ 23,550 Less: Sales Discounts 110 Less: Sales Returns and Allowances 1,700 Net Sales 21,740 Cost of Goods Sold 10,110 11,630 Gross Profit $ Expenses Unearned Revenue X $ 0 550 6,400 450 Insurance Expense Wages Expense Utility Expense Interest Expense Bad Debt Expense Rent Expense 150 900 2,300 Total Expenses 10,750 Net Income > $ 880 X Answer is complete but not entirely correct. WWC, Inc. Statement of Retained Earnings For the Month Ended February 29 Retained Earnings, Beginning of Period $ 4,420 Add: Net Income 880 X Less: Dividends 450 Retained Earnings, End of Period $ 4,850 X Answer is not complete. WWW, Inc. Balance Sheet At February 29 Assets Liabilities Current Assets Current Liabilities Notes Receivable $ 1,400 $ 150 Interest Receivable 14 Interest Payable Wages Payable Accounts Payable 3,200 Cash 10,000 450 Inventory OL 3,300 Total Current Assets $ 14,714 Total Current Liabilities $ 3,800 Notes Payable 15,000 Total liabilities 18,800 Stockholders' Equity Contributed Capital 6,000 Retained Earnings 4,420 X 10,420 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets $ 14,714 $ 29,220 2. Prepare all February 29 closing entries for WWC. Post to the T-Accounts in requirement 1-b. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) X Answer is not complete. No Transaction General Journal Debit Credit ! Required information (The following information applies to the questions displayed below.] Wally's Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows: Cash 4,850 $20,120 Unearned Revenue (25 units) $ 2,300 Accounts Receivable $ 11,150 Accounts Payable (Jan Rent) $ Allowance for Doubtful Accounts $(1,400) Notes Payable 15,000 $ Inventory (30 units) $ 6,000 $ 2,700 Contributed Capital Retained Earnings - Feb 1, 2012 $ 4,420 . WWC establishes a policy that it will sell inventory at $170 per unit. In January, WWC received a $4,850 advance for 25 units, as reflected in Unearned Revenue. WWC's February 1 inventory balance consisted of 30 units at a total cost of $2,700. WWC's note payable accrues interest at a 12% annual rate. WWC will use the FIFO inventory method and record COGS on a perpetual basis. February Transactions Included in WWC's February 1 Accounts Receivable balance is a $1,400 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and 02/01 cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,400 balance to a note, and Kit Kat signs a 6-month note, at 12% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012. WWC paid a $550 insurance premium covering the month of February. The 02/02 amount paid is recorded directly as an expense. 02/05 An additional 140 units of inventory are purchased on account by WwC for $10,500 - terms 2/15, n30. 02/05 WWC paid Federal Express $420 to have the 140 units of inventory delivered overnight. Delivery occurred on 02/06. 02/10 Sales of 110 units of inventory occurred during the period of 02/07 - 02/10. The sales terms are 2/10, net 30. 02/15 The 25 units that were paid for in advance and recorded in January are delivered to the customer. 10 units of the inventory that had been sold on 2/10 are returned to WWC. The 02/15 units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase. 02/16 WWC pays the first 2 weeks wages to the employees. The total paid is $3,200. Paid in full the amount owed for the 2/05 purchase of inventory. WWC records 02/17 purchase discounts in the current period rather than as a reduction of inventory costs. 02/18 Wrote off a customer's account in the amount of $1,500. $4,600 of rent for January and February was paid. Because all of the rent will 02/19 soon expire, the February portion of the payment is charged directly to expense. Collected $9,000 of customers' Accounts Receivable. Of the $9,000, the 02/19 discount was taken by customers on $5,500 of account balances; therefore WWC received less than $9,000. WWC recovered $500 cash from the customer whose account had previously 02/26 been written off (see 02/18). 02/27 A $450 utility bill for February arrived. It is due on March 15 and will be paid then. 02/28 WWC declared and paid a $450 cash dividend. Adjusting Entries: 02/29 Record the $3,200 employee salary that is owed but will be paid March 1. WWC decides to use the aging method to estimate uncollectible accounts. WWC 02/29 determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts. 02/29 Record February interest expense accrued on the note payable. 02/29 Record one month's interest earned Kit Kat's note (see 02/01). Required: 1-a. Prepare all February journal entries and adjusting entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 14 Feb. 19a Accounts Payable Rent Expense Cash 2,300 2,300 4,600 15 Feb. 19b Cash 8,890 Sales Discounts 110 Accounts Receivable 9,000 16 Feb. 26a > 500 Accounts Receivable Allowance for Doubtful Accounts 500 17 Feb. 26b Cash 500 Accounts Receivable 500 18 Feb. 27 450 Utility Expense Accounts Payable 450 19 Feb. 28 450 Dividends Declared Cash 450 20 Feb. 29a 3,200 o Wages Expense Wages Payable 3,200 21 Feb. 29b Bad Debt Expense 900 > Allowance for Doubtful Accounts 900 22 Feb. 29c 150 Interest Expense Interest Payable 150 23 Feb. 29d Interest Receivable 14 Interest Revenue 14 1-b. Post all February entries (transactions and adjustments) to the T-accounts. X Answer is not complete. Cash Accounts Receivable 20,120 Beg. bal. 11,150 Beg. bal. Feb. 19b Feb. 26b 8,890 550 Feb. 2 1,700 Feb. 150 500 420 Feb. 6 18,700 1,500 Feb. 18 Feb. 10a Feb. 26a 3,200 Feb. 16 500 9,000 Feb. 19b Feb. 26b 10,290 Feb. 17 OOOOO 500 4,600 1,400 Feb. 1 Feb. 19a Feb. 28 450 End. bal. 10,000 End. bal. 16,250 Inventory Allowance for Doubtful Accounts Beg. bal. 1,400 Feb. Feb. 18 1,500 500 26a Beg. bal. 2,700 Feb. 5 10,500 210 Feb. 17 Feb. 900 Feb. 6 0 420 29b 8,940 Feb. 10b Feb. 15b Feb. 15c 780 1,950 End. bal. 1,300 End. bal. 3,300 Notes Receivable Interest Receivable Beg. bal. Beg. bal. Feb. 29d Feb. 1 1,400 14 End. bal. 1,400 End. bal. 14 Accounts Payable Unearned Revenue 2,300 4,850 Beg. bal. Feb. 19a Beg. bal. Feb. 15a 2,300 10,500 Feb. 5 4,850 Feb. 17 10,500 450 Feb. 27 End. bal. 450 End. bal. Wages Payable Interest Payable Beg. Beg. bal. bal. 3,200 Feb. 29a 150 Feb. 29c End. bal. 3,200 End. bal. 150 Notes Payable Contributed Capital Beg. bal. 15,000 Beg. bal. 6,000 End. bal. 15,000 End. bal. 6,000 Retained Earnings Dividends Declared Beg. bal. 4,420 Beg. bal. Feb. 28 450 End. bal. 4,420 End. bal. 450 Sales Revenue Sales Returns & Allowances Beg. bal. Beg. bal. Feb. 15d 18,700 1,700 Feb. 10a Feb. 15a 4,850 End. bal. 23,550 End. bal. 1,700 Sales Discounts Cost of Goods Sold Beg. bal. Feb. 19b 110 Beg. bal. Feb. 10b Feb. 15b 8,940 780 Feb. 15c 1,950 End. bal. 110 End. bal. 10,110 Interest Revenue Bad Debt Expense Beg. bal. Beg. bal. Feb. 29b 14 Feb. 29d > 900 End. bal. 14 End. bal. 900 Insurance Expense Interest Expense Beg. bal. Beg. bal. Feb. 29c Feb. 2 550 150 End. bal. 550 End. bal. 150 Rent Expense Utility Expense Beg. bal. Beg. bal. Feb. 19a 2,300 Feb. 27 450 End. bal. 2,300 End. bal. 450 Wages Expense Beg. bal. Feb. 29a Feb. 16 3,200 3,200 6,400 1-c. Prepare the financial statements at the end of February. (Balance Sheet only, items to be deducted must be indicated with a negative amount.) Answer is not complete. WWC, Inc. Income Statement For the Month Ended February 29 Revenues Sales Revenue $ 23,550 Less: Sales Discounts 110 Less: Sales Returns and Allowances 1,700 Net Sales 21,740 Cost of Goods Sold 10,110 11,630 Gross Profit $ Expenses Unearned Revenue X $ 0 550 6,400 450 Insurance Expense Wages Expense Utility Expense Interest Expense Bad Debt Expense Rent Expense 150 900 2,300 Total Expenses 10,750 Net Income > $ 880 X Answer is complete but not entirely correct. WWC, Inc. Statement of Retained Earnings For the Month Ended February 29 Retained Earnings, Beginning of Period $ 4,420 Add: Net Income 880 X Less: Dividends 450 Retained Earnings, End of Period $ 4,850 X Answer is not complete. WWW, Inc. Balance Sheet At February 29 Assets Liabilities Current Assets Current Liabilities Notes Receivable $ 1,400 $ 150 Interest Receivable 14 Interest Payable Wages Payable Accounts Payable 3,200 Cash 10,000 450 Inventory OL 3,300 Total Current Assets $ 14,714 Total Current Liabilities $ 3,800 Notes Payable 15,000 Total liabilities 18,800 Stockholders' Equity Contributed Capital 6,000 Retained Earnings 4,420 X 10,420 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets $ 14,714 $ 29,220 2. Prepare all February 29 closing entries for WWC. Post to the T-Accounts in requirement 1-b. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) X Answer is not complete. No Transaction General Journal Debit Credit
