Question

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 Accounts Receivable Allowance for Doubtful Accounts Inventory (30 units) $ 13,000 $19,520 Unearned Revenue (25 units) $ %. $10,550 Accounts Payable (Jan Rent) $1,900 $(1.200) Notes Payable $ 2,100 Contributed Capital Retained Earnings - Feb 1, 5,820 2012 $ 5,600 pital . WWC establishes a policy that it will sell inventory at $165 per unit. In January, WWC received a $4.650 advance for 25 units, as reflected in Unearned Revenue. • WWC's February 1 inventory balance consisted of 30 units at a total cost of $2,100. • WWC's note navahle accrues interest at a 12 annual rate Prev 1 of 1 !!! Next ere to search o e @ 83. *

please dont solve for the journal entires i already got it thanks

Answer 1

Cash Account

Beg. Bal	19520	Insurance expense	800
		Inventory*	340
		Wages	2800
		Accounts payable	12495
		End bal (Dr)	3085
	19520		19520

Accounts receivable

Beg. bal	10550	Notes receivable	1500
Sales revenue	23100	Allowance for doubtful accounts	1200
		Sales return and allowances	2475
		End bal (Dr)	28475
	33650		33650

Allowance for doubtful accounts

Accounts receivable	1200	Beg. Bal	1200
	1200		1200

Inventory

Beg. Bal	2100	Cost of goods sold	10745
Accounts payable	12750	Cost of goods sold	1750
Cash *	340
Cost of goods sold	1155	End bal (Dr)	3850
	16345		16345

* The delivery charges for bringing the inventory to its current place and making it ready for use is capitalized with inventory costs.

Notes receivable

Accounts receivable	1500
		End bal (Dr)	1500
	1500		1500

Interest receivable

Interest revenue	10	End bal (Dr)	10
	10		10

Accounts payable

Cash	12495	Beg. Bal	1900
Discount received	255	Inventory	12750
End Bal (Cr)	1900
	14650		14650

Unearned revenue

Sales revenue	4650	Beg. Bal	4650
	4650		4650

Wages payable

End bal	0	Beg. Bal	0
	0		0

Interest payable

End bal(Cr)	130	Interest expense	130
	130		130

Notes payable

End bal(Cr)	13000	Beg. Bal	13000
	13000		13000

Contribution capital

End bal (Cr)	5600	Beg. Bal	5600
	5600		5600

Retained earnings

Cost of goods sold	11340	Beg. Bal	5820
Sales return and allowances	2475	Sales revenue	27750
Wages	2800	Interest revenue	10
Insurance expense	800
Interest expense	130
End bal (Cr)	16035
	33580		33580

$Assuming revenue account is as same as retained earnings

Dividends declared

NA	NA	NA	NA
	NA		NA

Sales revenue

Retained earnings	27750	Accounts receivable	23100
		Unearned revenue	4650
	27750		27750

Sales return and allowances

Accounts receivable	2475	Retained earnings	2475
	2475		2475

Sales discount

As I cannot read the entire question I cannot fill up the account. As far as it visually accessible to me the question cannot be read after 02/18. Thus, I am leaving this t account as blank.

Cost of goods sold

Inventory	10745	Inventory	1155
Inventory	1750	Retained earnings	11340
	12495		12495

Interest revenue

Retained earnings	10	Interest receivable	10
	10		10

Bad debt expense

As the bad debt is written off from allowances for doubtful accounts no entry is required in bad debts account.

Insurance expense

Cash	800	Retained earnings	800
	800		800

Interest expense

Interest payable	130	Retained earnings	130
	130		130

Rent expense

As the question is visually accessible upto 02/18, there is nothing about rent expense, thus, I am leaving the t account as blank.

Utility expense

As the question is visually accessible upto 02/18, there is nothing about utility expense, thus, I am leaving the t account as blank.

Wages expense

Cash	2800	Retained earnings	2800
	2800		2800

N.B. I cannot see the question beyond 02/18 date where the amount is written off from debtors. It is a shame I could not complete the question.