WHAT WOULD THE TRIAL BALANCE AND FINANCIAL STATEMENT BE?

The following events occur during September:

a. Webworks purchases supplies worth $120 on account.

b. At the beginning of September, Webworks had 19 keyboards costing $100 each and 110 flash drives costing $10 each. Webworks has decided to use perpetual FIFO to cost its inventory.

c. On account, Webworks purchases thirty keyboards for $105 each and fifty flash drives for $11 each.

d. Webworks starts and completes five more Web sites and bills clients for $3,000.

e. Webworks pays Nancy $500 for her work during the first three weeks of September.

f. Webworks sells 40 keyboards for $6,000 and 120 flash drives for $2,400 cash.

g. Webworks collects $2,500 in accounts receivable.

h. Webworks pays off its salaries payable from August.

i. Webworks pays off $5,500 of its accounts payable.

j. Webworks pays off $5,000 of its outstanding note payable.

k. Webworks pays Leon salary of $2,000.

l. Webworks pays taxes of $795 in cash.

Required:

A. Prepare journal entries for the above events.

B. Post the journal entries to T-accounts.

C. Prepare an unadjusted trial balance for Webworks for September.

D. Prepare adjusting entries for the following and post them to your T-accounts.

m. Webworks owes Nancy $300 for her work during the last week of September.

n. Leons parents let him know that Webworks owes $275 toward the electricity bill. Webworks will pay them in October.

o. Webworks determines that it has $70 worth of supplies remaining at the end of September.

p. Prepaid rent should be adjusted for Septembers portion.

q. Webworks is continuing to accrue bad debts so that the allowance for doubtful accounts is 10 percent of accounts receivable.

E. Prepare an adjusted trial balance.

F. Prepare financial statements for September.

THIS IS THE MONTH OF AUGUST FINANCIAL STATEMENTS

AutoSave Off HB project template for students (3) (1).xlsx O Search (Alt+Q) Jasmine Jones JJ File Home Insert Draw Page Layout Formulas Data Review View Help Comments Share NT Arial 12 ~ AA = = Wrap Text General CIT A M 28 o WIS F IN Analyze Data Paste BIU - a. Av EE E Merge & Center $ %) -20 Insert Delete Format Y Conditional Format as Cell Formatting Table Styles Styles Sort & Find & Filter Select Clipboard Font Alignment Number Cells Editing Analysis R28 X Formula Bar G . H 1 J K K L L P R S T U w X Y Z N Balance Sheet AAA Assets Liabilities Accounts Pay Electricity Payable $ 2,690.00 Cash Acct Receivable Allowance Supplies Merch Inventory Prepaid Rent $ 6,445.00 $ 1,250.00 $ (125.00) $ 60.00 $ 3,000.00 $ 3,000.00 Wages Payable 250 Unearned Rev 100 Total Current Liabilities $ 3,040.00 Total Current Assets $ 13,630 Noncurrent Computer and Equipment $ 7,000.00 Noncurrent Notes Payable $10,000.00 A B D E F F 2 Income Statement 3 4 4 Service Revenue $ 3,200.00 5 Sales Revenue $ 7,500.00 6 Total Revenue $10,700.00 7 7 Rent Expense S 200.00 8 8 Electricity Expense $ 250.00 9 Wages Expense $ 2,850.00 10 Bad debt S 120.00 11 Supplies Expense $ 90.00 12 Total Expenses $ 3,510.00 13 14 income before taxes $ 2.090.00 15 tax expense $ 475.00 16 17 net income $ 1.615.00 18 19 20 21 22 Webworks 23 Statement of Retained Earnings 24 25 Retained Earnings, June 1 26 Net Income 1615 27 28 Retained Earnings, June 30 $ 2,790 29 30 31 32 33 34 35 Owner's Equity Owner Capital Retained Earnings, June $ Total Owner's Equity S 2000 2,790 4,790 HAT Total Assets $20,630.00 Total Liabilities and Equity S 17,830 t accounts template Trial balance template Sheets + Ready Chapter Five journal Accessibility: Investigate Type here to search 6 + 67% o W 52F a) ENG 9:34 AM 4/25/2022