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$21,320 Unearned Revenue (45 units)$5,250

Accounts Receivable$12,350 Accounts Payable (Jan Rent)$3,100

Allowance for Doubtful Accounts$(1,800) Notes Payable$15,000

Inventory (50 units)$4,250 Contributed Capital$6,800

Retained Earnings Feb 1, 2012$5,970

WWC establishes a policy that it will sell inventory at $175 per unit.

In January, WWC received a $5,250 advance for 45 units, as reflected in Unearned Revenue.

WWCs February 1 inventory balance consisted of 50 units at a total cost of $4,250.

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 $1,600 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 $1,600 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.

02/02

WWC paid a $950 insurance premium covering the month of February. The amount paid is recorded directly as an expense.

02/05

An additional 160 units of inventory are purchased on account by WWC for $12,000 terms 2/15, n30.

02/05

WWC paid Federal Express $320 to have the 160 units of inventory delivered overnight. Delivery occurred on 02/06.

02/10

Sales of 130 units of inventory occurred during the period of 02/07 02/10. The sales terms are 2/10, net 30.

02/15

The 45 units that were paid for in advance and recorded in January are delivered to the customer.

02/15

15 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.

02/16WWC pays the first 2 weeks wages to the employees. The total paid is $2,600.

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.

02/18Wrote off a customers account in the amount of $1,900.

02/19

$6,200 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 $9,800 of customers Accounts Receivable. Of the $9,800, the discount was taken by customers on $7,000 of account balances; therefore WWC received less than $9,800.

02/26

WWC recovered $580 cash from the customer whose account had previously been written off (see 02/18).

02/27

A $850 utility bill for February arrived. It is due on March 15 and will be paid then.

02/28WWC declared and paid a $750 cash dividend.

Adjusting Entries:

02/29

Record the $2,600 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.

02/29Record February interest expense accrued on the note payable.

02/29Record one months interest earned Kit Kats note (see 02/01).

Need help with the journal entries, t-accounts, and financial statements. Please help ASAP!! Will rate!!

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 (50 units) 5,250 $21,320 Unearned Revenue (45 units) $ $12,350 Accounts Payable (Jan Rent) $3,100 $(1,800) Notes Payable $ 15,000 $ 4,250 Contributed Capital 6,800 Retained Earnings - Feb 1. 5,970 2012 $ $ WWC establishes a policy that it will sell inventory at $175 per unit. In January, WWC received a $5,250 advance for 45 units, as reflected in Unearned Revenue. WWC's February 1 inventory balance consisted of 50 units at a total cost of $4,250. 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 $1,600 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 02/01 $1,600 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 02/02 WWC paid a $950 insurance premium covering the month of February. The amount paid is recorded directly as an expense. 02/05 An additional 160 units of inventory are purchased on account by WwC for $12,000 - terms 2/15, n30. 02/05 WWC paid Federal Express $320 to have the 160 units of inventory delivered overnight. Delivery occurred on 02/06. 02/10 Sales of 130 units of inventory occurred during the period of 02/07 - 02/10. The sales terms are 2/10, net 30. 02/15 The 45 units that were paid for in advance and recorded in January are delivered sales terms are 2/10, net 30. The 45 units that were paid for in advance and recorded in January are delivered 02/15 to the customer. 15 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 period rather than as a reduction of inventory costs. 02/18 Wrote off a customer's account in the amount of $1,900. 02/19 $6,200 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 $9,800 of customers' Accounts Receivable. Of the $9,800, the 02/19 discount was taken by customers on $7,000 of account balances; therefore WWC received less than $9,800. WWC recovered $580 cash from the customer whose account had previously 02/26 been written off (see 02/18). 02/27 A $850 utility bill for February arrived. It is due on March 15 and will be paid then. 02/28 WWC declared and paid a $750 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). Required information No Date General Journal Debit Credit 1 Feb. 1 Notes Receivable 1,600 Accounts Receivable > 1,600 2. Feb. 2 Insurance Expense Cash 950 > 950 Feb. 5 12,000 Inventory Accounts Payable >> 12,000 4 Feb. 6 320 Inventory Cash 320 th Feb. 10a 22,750 Accounts Receivable Sales Revenue > 22.750 6 Feb. 10b 10,250 Cost of Goods Sold Inventory 10,250 7 Feb. 15a 5,250 Unearned Revenue Sales Revenue 5,250 8 Feb, 15b 3,375 Cost of Goods Sold Inventory 3,375 9 Feb. 150 Sales Returns and Allowance Accounts Receivable XIX 2,625 2,625 Required information 10 Feb. 15d 2,625 Inventory Cost of Goods Sold 2,625 11 Feb. 16 2,600 Wages Expense Cash 2,600 12 Feb. 17 12,000 Accounts Payable Sales Discounts Cash 240 11,760 13 Feb. 18 1,900 Allowance for Doubtful Accounts Accounts Receivable 1,900 14 Feb. 19a Accounts Payable Rent Expense Cash 3,100 3,100 3 6,200 15 Feb. 19b 9,660 >> IS 140 Cash Sales Discounts Accounts Receivable 9,800 580 16 Feb. 26a Accounts Receivable Allowance for Doubtful Accounts 580 580 17 Feb. 26b Cash Accounts Receivable 580 Required information 17 580 Feb. 26b Cash Accounts Receivable 580 850 18 Feb. 27 Utility Expense Accounts Payable 850 750 19 Feb. 28 Dividends Declared Cash >> 750 20 2,600 . Feb. 29a Wages Expense Wages Payable OO 2,600 21 Feb. 29b 1,390 Bad Debt Expense Allowance for Doubtful Accounts >> 1,390 150 22 Feb. 29c Interest Expense Interest Payable >> 150 > 16 23 Feb. 290 Interest Receivable Interest Revenue 16 0 Required information Answer is not complete. Cash Beg. bal Accounts Receivable 12,350 21,320 Feb. 9,660 950 Feb. 2 > 19b Feb. 26b Beg. bal. Feb. 10a Feb. 26a 22,750 1,600 580 2,625 580 320 Feb. 6 > Feb. 1 Feb. 150 Feb. 18 Feb. 19b 2,600 Feb. 16 1,900 11,760 9,800 6,200 Feb. 17 Feb. 19a Feb. 28 750 580 Feb. 26b End. bal. 8,980 End. bal. 19,175 Inventory Beg. bal. Allowance for Doubtful Accounts Beg. 3,770 bal. 1,800 X Feb. 1 Feb. 580 26a Feb. 1,390 29b X End. bal. End. bal. Notes Receivable Interest Receivable Beg. hal Beg. hal Required information 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 Payablo Beg. bal. Beg. bal. End. bal. End. bal. Notes Payable Contributed Capital Beg bal. Beg bal Required information Notes Payable Contributed Capital Beg. bal. Beg. bal. End. bal. End. bal. Retained Earnings Dividends Declared Beg. bal. Beg. bal. End End. bal. bal, Sales Revenue Sales Returns & Allowances Beg bal. Beg. bal. End. bal. End. bal, Sales Discounts Cost of Goods Sold Beg. bal. Beg bal. Required information 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 Beg. bal. Beg bal. End. bal. End. bal. Rent Expense Utility Expense Beg. bal. Beg bal Required information Rent Expenso Utility Expense Beg. Beg. bal. bal. End. bal. End. bal. 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 0 $ 0 0 WWC, Inc. Statement of Retained Earnings Retained Earnings, Beginning of Period Retained Earnings, End of Period Required information www, Inc. Balance Sheet Assets Liabilities Current Assets Current Liabilities Total Current Assets $ 0 Total Current Liabilities $ 0 Total liabilities 0 Stockholders' Equity 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets $ 0 0 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.) View transaction list Journal entry worksheet 1 2 3 Record the entry to close sales revenue, interest revenue, sales returns and allowances, sales discounts. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general Journal 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.) View transaction list Journal entry worksheet 2. 3 > Record the entry to close expenses. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 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.) View transaction list Journal entry worksheet