Please note 7 10 journal entry has been attempted multiple times but has appeared to be incorrect Same goes for 21 The following information applies to the questions displayed below Wallys 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 $ 21,020 Unearned Revenue (35 units) $ 5,150 Accounts Receivable $ 12,050 Accounts Payable (Jan Rent) $ 2,900 Allowance for Doubtful Accounts $ (1,700) Notes Payable $ 14,000 Inventory (40 units) $ 3,400 Contributed Capital $ 6,600 Retained Earnings Feb 1, 2012 $ 6,120 WWC establishes a policy that it will sell inventory at $150 per unit In January, WWC received a $5,150 advance for 35 units, as reflected in Unearned Revenue WWCs February 1 inventory balance consisted of 40 units at a total cost of $3,400 WWCs 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 02 01 Included in WWCs 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 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 9 annual interest The principal and all interest will be due and payable to WWC on August 1, 2012 02 02 WWC paid a $850 insurance premium covering the month of February The amount paid is recorded directly as an expense 02 05 An additional 200 units of inventory are purchased on account by WWC for $15,000 terms 2 15, n30 02 05 WWC paid Federal Express $600 to have the 200 units of inventory delivered overnight Delivery occurred on 02 06 02 10 Sales of 170 units of inventory occurred during the period of 02 07 02 10 The sales terms are 2 10, net 30 02 15 The 35 units that were paid for in advance and recorded in January are delivered to the customer 02 15 30 units of the inventory that had been sold on 2 10 are returned to WWC The 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 $2,400 02 17 Paid in full the amount owed for the 2 05 purchase of inventory WWC records purchase discounts in the current period rather than as a reduction of inventory costs 02 18 Wrote off a customers account in the amount of $1,800 02 19 $5,800 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 02 19 Collected $9,600 of customers Accounts Receivable Of the $9,600, the discount was taken by customers on $7,000 of account balances therefore WWC received less than $9,600 02 26 WWC recovered $560 cash from the customer whose account had previously been written off (see 02 18) 02 27 A $750 utility bill for February arrived It is due on March 15 and will be paid then 02 28 WWC declared and paid a $600 cash dividend Adjusting Entries 02 29 Record the $2,400 employee salary that is owed but will be paid March 1 02 29 WWC decides to use the aging method to estimate uncollectible accounts WWC 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 months interest earned Kit Kats note (see 02 01) Included in WWCs February 1 Accounts Receivable balance is a $1,500 account due from Kit Kat, a WWC customer Kit Kat is having cash flow problems and 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 9 annual interest The principal and all interest will be due and payable to WWC on August 1, 2012 2 WWC paid a $850 insurance premium covering the month of February The amount paid is recorded directly as an expense 3 An additional 200 units of inventory are purchased on account by WWC for $15,000 terms 2 15, n30 4 WWC paid Federal Express $600 to have the 200 units of inventory delivered overnight Delivery occurred on 02 06 5 Record the sales of 170 units of inventory 6 Record the cost of goods sold for 170 units 7 Record the unearned revenue for 35 units paid in advance 8 Record the cost of goods sold for 35 units 9 Record the 30 units of inventory returned 10 Record the sales return and allowance 11 WWC pays the first 2 weeks wages to the employees The total paid is $2,400 12 Paid in full the amount owed for the 2 05 purchase of inventory WWC records purchase discounts in the current period rather than as a reduction of inventory costs 13 Wrote off a customers account in the amount of $1,800 14 $5,800 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 15 Collected $9,600 of customers Accounts Receivable Of the $9,600, the discount was taken by customers on $7,000 of account balances therefore WWC received less than $9,600 16 Record the entry to reversal of allowance for doubtful accounts 17 Record the entry to recovered $560 cash from the customer 18 A $750 utility bill for February arrived It is due on March 15 and will be paid then 19 WWC declared and paid a $600 cash dividend 20 Record the $2,400 employee salary that is owed but will be paid March 1 21 WWC decides to use the aging method to estimate uncollectible accounts WWC determines 8 of the ending balance is the appropriate end of February estimate of uncollectible accounts 22 Record February interest expense accrued on the note payable 23 Record one months interest earned Kit Kats note (see 02 01) Post all February entries (transactions and adjustments) to the T accounts

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Please note: 7-10 journal entry has been attempted multiple times but has appeared to be incorrect. Same goes for 21. [The following information applies to

Please note: 7-10 journal entry has been attempted multiple times but has appeared to be incorrect. Same goes for 21.

[The following information applies to the questions displayed below.]

Wallys 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	$	21,020	Unearned Revenue (35 units)	$	5,150
Accounts Receivable	$	12,050	Accounts Payable (Jan Rent)	$	2,900
Allowance for Doubtful Accounts	$	(1,700)	Notes Payable	$	14,000
Inventory (40 units)	$	3,400	Contributed Capital	$	6,600
			Retained Earnings Feb 1, 2012	$	6,120

	WWC establishes a policy that it will sell inventory at $150 per unit.
	In January, WWC received a $5,150 advance for 35 units, as reflected in Unearned Revenue.
	WWCs February 1 inventory balance consisted of 40 units at a total cost of $3,400.
	WWCs 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
02/01	Included in WWCs 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 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 9% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012.
02/02	WWC paid a $850 insurance premium covering the month of February. The amount paid is recorded directly as an expense.
02/05	An additional 200 units of inventory are purchased on account by WWC for $15,000 terms 2/15, n30.
02/05	WWC paid Federal Express $600 to have the 200 units of inventory delivered overnight. Delivery occurred on 02/06.
02/10	Sales of 170 units of inventory occurred during the period of 02/07 02/10. The sales terms are 2/10, net 30.
02/15	The 35 units that were paid for in advance and recorded in January are delivered to the customer.
02/15	30 units of the inventory that had been sold on 2/10 are returned to WWC. The 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 $2,400.
02/17	Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs.
02/18	Wrote off a customers account in the amount of $1,800.
02/19	$5,800 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.
02/19	Collected $9,600 of customers Accounts Receivable. Of the $9,600, the discount was taken by customers on $7,000 of account balances; therefore WWC received less than $9,600.
02/26	WWC recovered $560 cash from the customer whose account had previously been written off (see 02/18).
02/27	A $750 utility bill for February arrived. It is due on March 15 and will be paid then.
02/28	WWC declared and paid a $600 cash dividend.

Adjusting Entries:

02/29	Record the $2,400 employee salary that is owed but will be paid March 1.
02/29	WWC decides to use the aging method to estimate uncollectible accounts. WWC 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 months interest earned Kit Kats note (see 02/01).

Included in WWCs February 1 Accounts Receivable balance is a $1,500 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and 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 9% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012.

WWC paid a $850 insurance premium covering the month of February. The amount paid is recorded directly as an expense.

An additional 200 units of inventory are purchased on account by WWC for $15,000 terms 2/15, n30.

WWC paid Federal Express $600 to have the 200 units of inventory delivered overnight. Delivery occurred on 02/06.

Record the sales of 170 units of inventory.

Record the cost of goods sold for 170 units.

Record the unearned revenue for 35 units paid in advance.

Record the cost of goods sold for 35 units.

Record the 30 units of inventory returned

Record the sales return and allowance.

WWC pays the first 2 weeks wages to the employees. The total paid is $2,400.

Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs.

Wrote off a customers account in the amount of $1,800.

$5,800 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 $9,600 of customers Accounts Receivable. Of the $9,600, the discount was taken by customers on $7,000 of account balances; therefore WWC received less than $9,600.

Record the entry to reversal of allowance for doubtful accounts.

Record the entry to recovered $560 cash from the customer.

A $750 utility bill for February arrived. It is due on March 15 and will be paid then.

WWC declared and paid a $600 cash dividend.

Record the $2,400 employee salary that is owed but will be paid March 1.

WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts.

Record February interest expense accrued on the note payable.

Record one months interest earned Kit Kats note (see 02/01).

Post all February entries (transactions and adjustments) to the T-accounts.