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I There are some bank statements i got wrong in the red x's listed and just want to know the real answers for that and
I There are some bank statements i got wrong in the red x's listed and just want to know the real answers for that and if you could help me put them into the T accounts that would be great as fitting them in together has always been pretty tricky (especially when i don't have all the right answers). Thank you.
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 Accounts Receivable Allowance for Doubtful Accounts Inventory (45 units) $19,220 Unearned Revenue (40 units) $ 4,550 $10,250 Accounts Payable (Jan Rent) $1,700 $ (1,100) Notes Payable 15,500 A $5,400 $ 3,600 Contributed Capital Retained Earnings - Feb 1, 2012 4,820 A WWC establishes a policy that it will sell inventory at $175 per unit. In January, WWC received a $4,550 advance for 40 units, as reflected in Unearned Revenue . WWC's February 1 inventory balance consisted of 45 units at a total cost of $3,600 . 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. . 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 $1,900 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and 02/01 on cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,900 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 $700 insurance premium covering the month of February. The amount paid is recorded directly as an expense. 02/05 An additional 150 units of inventory are purchased on account by WWC for $9,000 - terms 2/15, n30. 02/05 WWC paid Federal Express $600 to have the 150 units of inventory delivered overnight. Delivery occurred on 02/06. Mo Sales of 120 units of inventory occurred during the period of 02/07 - 02/10. The sales terms are 2/10, net 30. The 40 units that were paid for in advance and recorded in January are delivered to the customer. 25 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 $2,600. Paid in full the amount owed for the 2/05 purchase of inventory. WWC records 02/17 purchase discounts in the current neriod rather than as a reduction of inventory 02/16 WWC pays the first 2 weeks wages to the employees. The total paid is $2,600. 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 $1,200. 240 $3,400 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense. Collected $8,400 of customers' Accounts Receivable. Of the $8,400, the 02/19 discount was taken by customers on $5,500 of account balances; therefore WWC received less than $8,400. WWC recovered $440 cash from the customer whose account had previously been written off (see 02/18). 02/27 A $700 utility bill for February arrived. It is due on March 15 and will be paid then. 02/28 WWC declared and paid a $400 cash dividend. Adjusting Entries: 02/29 Record the $2,600 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). Feb. 10a 21,000 Accounts Receivable Sales Revenue 21,000 Feb. 10b 8,310 X Cost of Goods Sold Inventory 8,310 X Feb. 15a 4,550 Unearned Revenue Sales Revenue 4,550 Feb. 15b 2,512 X Cost of Goods Sold Inventory 2,512X Feb. 150 4,375 X Sales Returns and Allowance Accounts Receivable 4.375 9 Feb. 15c 4,375 X Sales Returns and Allowance Accounts Receivable 4,375 X 10 Feb. 15d 1,570 % Inventory Cost of Goods Sold 1,570 % Feb. 16 2,600 Wages Expense Cash 2,600 Feb. 17 9,000 Accounts Payable Cash Sales Discounts 8,820 180 Feb. 18 1,200 Allowance for Doubtful Accounts Accounts Receivable 1,200 13 Feb. 18 1,200 Allowance for Doubtful Accounts Accounts Receivable 1,200 Feb. 19a Cash 8,290 110 Sales Discounts Accounts Receivable 8,400 X 15 Feb. 19b Cash Sales Discounts Accounts Receivable 8,290 110 8,400 16 Feb. 26a 440 Accounts Receivable Allowance for Doubtful Accounts 440 265 Feb. 26b Cash 440 Accounts Receivable 440 Feb. 27 700 Utility Expense Accounts Payable 700 19 Feb. 28 400 Dividends Declared Cash 400 20 Feb. 29a 2,600 Wages Expense Wages Payable 2,600 Feb. 29b 3,090 Bad Debt Expense Allowance for Doubtful Accounts 3,090 X Feb. 29c 1551 Interest Expense Interest Payable 155 Feb. 29d Interest Receivable Interest Revenue o _ 1999 190 1-b. Post all February entries (transactions and adjustments) to the T-accounts. Cash Accounts Receivable Beg. bal. Beg. bal. End. bal. End. bal. Inventory Allowance for Doubtful Accounts Beg. bal. Beg. bal. End. bal. End. bal. Notes Receivable Interest Receivable Beg. bal. Beg. bal. End. bal. End. bal. Accounts Payable Unearned Revenue Beg. bal. Beg. bal. End. bal. End. bal. Wages Payable Interest Payable Wages Payable Interest Payable Beg. bal. Beg. bal. End. bal. End. bal. Notes Payable Contributed Capital Beg. bal. Beg. bal. End. bal. End. bal. Retained Earnings Dividends Declared Beg. bal. Beg. bal. End. bal. End. bal. Retained Earnings Dividends Declared Beg. bal. Beg. bal. End. bal. End. bal. Sales Revenue Sales Returns & Allowances Beg. bal. Beg. bal. D End, bal. End, bal Sales Discounts Cost of Goods Sold Beg. bal. Beg. bal. End. bal. End. bal. Sales Discounts Cost of Goods Sold Beg. bal. Beg. bal. End. bal. End. bal. Interest Revenue Bad Debt Expense Beg. bal. Beg. bal. End. bal. End. bal. Insurance Expense Interest Expense Insurance Expense Interest Expense Beg. bal. Beg. bal. End. bal. End. bal. Rent Expense Utility Expense Beg. bal. Beg. bal. End. bal. End. bal. Wages Expense Beg. bal. 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 Accounts Receivable Allowance for Doubtful Accounts Inventory (45 units) $19,220 Unearned Revenue (40 units) $ 4,550 $10,250 Accounts Payable (Jan Rent) $1,700 $ (1,100) Notes Payable 15,500 A $5,400 $ 3,600 Contributed Capital Retained Earnings - Feb 1, 2012 4,820 A WWC establishes a policy that it will sell inventory at $175 per unit. In January, WWC received a $4,550 advance for 40 units, as reflected in Unearned Revenue . WWC's February 1 inventory balance consisted of 45 units at a total cost of $3,600 . 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. . 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 $1,900 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and 02/01 on cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,900 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 $700 insurance premium covering the month of February. The amount paid is recorded directly as an expense. 02/05 An additional 150 units of inventory are purchased on account by WWC for $9,000 - terms 2/15, n30. 02/05 WWC paid Federal Express $600 to have the 150 units of inventory delivered overnight. Delivery occurred on 02/06. Mo Sales of 120 units of inventory occurred during the period of 02/07 - 02/10. The sales terms are 2/10, net 30. The 40 units that were paid for in advance and recorded in January are delivered to the customer. 25 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 $2,600. Paid in full the amount owed for the 2/05 purchase of inventory. WWC records 02/17 purchase discounts in the current neriod rather than as a reduction of inventory 02/16 WWC pays the first 2 weeks wages to the employees. The total paid is $2,600. 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 $1,200. 240 $3,400 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense. Collected $8,400 of customers' Accounts Receivable. Of the $8,400, the 02/19 discount was taken by customers on $5,500 of account balances; therefore WWC received less than $8,400. WWC recovered $440 cash from the customer whose account had previously been written off (see 02/18). 02/27 A $700 utility bill for February arrived. It is due on March 15 and will be paid then. 02/28 WWC declared and paid a $400 cash dividend. Adjusting Entries: 02/29 Record the $2,600 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). Feb. 10a 21,000 Accounts Receivable Sales Revenue 21,000 Feb. 10b 8,310 X Cost of Goods Sold Inventory 8,310 X Feb. 15a 4,550 Unearned Revenue Sales Revenue 4,550 Feb. 15b 2,512 X Cost of Goods Sold Inventory 2,512X Feb. 150 4,375 X Sales Returns and Allowance Accounts Receivable 4.375 9 Feb. 15c 4,375 X Sales Returns and Allowance Accounts Receivable 4,375 X 10 Feb. 15d 1,570 % Inventory Cost of Goods Sold 1,570 % Feb. 16 2,600 Wages Expense Cash 2,600 Feb. 17 9,000 Accounts Payable Cash Sales Discounts 8,820 180 Feb. 18 1,200 Allowance for Doubtful Accounts Accounts Receivable 1,200 13 Feb. 18 1,200 Allowance for Doubtful Accounts Accounts Receivable 1,200 Feb. 19a Cash 8,290 110 Sales Discounts Accounts Receivable 8,400 X 15 Feb. 19b Cash Sales Discounts Accounts Receivable 8,290 110 8,400 16 Feb. 26a 440 Accounts Receivable Allowance for Doubtful Accounts 440 265 Feb. 26b Cash 440 Accounts Receivable 440 Feb. 27 700 Utility Expense Accounts Payable 700 19 Feb. 28 400 Dividends Declared Cash 400 20 Feb. 29a 2,600 Wages Expense Wages Payable 2,600 Feb. 29b 3,090 Bad Debt Expense Allowance for Doubtful Accounts 3,090 X Feb. 29c 1551 Interest Expense Interest Payable 155 Feb. 29d Interest Receivable Interest Revenue o _ 1999 190 1-b. Post all February entries (transactions and adjustments) to the T-accounts. Cash Accounts Receivable Beg. bal. Beg. bal. End. bal. End. bal. Inventory Allowance for Doubtful Accounts Beg. bal. Beg. bal. End. bal. End. bal. Notes Receivable Interest Receivable Beg. bal. Beg. bal. End. bal. End. bal. Accounts Payable Unearned Revenue Beg. bal. Beg. bal. End. bal. End. bal. Wages Payable Interest Payable Wages Payable Interest Payable Beg. bal. Beg. bal. End. bal. End. bal. Notes Payable Contributed Capital Beg. bal. Beg. bal. End. bal. End. bal. Retained Earnings Dividends Declared Beg. bal. Beg. bal. End. bal. End. bal. Retained Earnings Dividends Declared Beg. bal. Beg. bal. End. bal. End. bal. Sales Revenue Sales Returns & Allowances Beg. bal. Beg. bal. D End, bal. End, bal Sales Discounts Cost of Goods Sold Beg. bal. Beg. bal. End. bal. End. bal. Sales Discounts Cost of Goods Sold Beg. bal. Beg. bal. End. bal. End. bal. Interest Revenue Bad Debt Expense Beg. bal. Beg. bal. End. bal. End. bal. Insurance Expense Interest Expense Insurance Expense Interest Expense Beg. bal. Beg. bal. End. bal. End. bal. Rent Expense Utility Expense Beg. bal. Beg. bal. End. bal. End. bal. Wages Expense Beg. balStep by Step Solution
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