Question

Can somone please help me with the journal entries?

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 $20,420 Unearned Revenue (35 units) $ 4,950 Accounts Receivable Allowance for Doubtful Accounts Inventory (40 units) $ 11,450 Accounts Payable (Jan Rent) $ 2,500 $ (1,500) Notes Payable $ 16,000 $ 3,600 Contributed Capital 6,200 Retained Earnings - Feb 1, 4,320 2012 " tी ी ी . WWC establishes a policy that it will sell inventory at $145 per unit. In January, WWC received a $4,950 advance for 35 units, as reflected in Unearned Revenue . WWC's February 1 inventory balance consisted of 40 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.

Answer 1

Wally’s Widget Company (WWC)
Journal entries
Date	Account	Debit	Credit
Feb 1.	Note Receivable	1,800
	Accounts Receivable		1,800
Feb 2.	Insurance expense	650
	Cash		650
Feb 5.	Inventory	12,000		=12,000/160 = 75 per unit
	Accounts Payable		12,000	2/15, n30
Feb 6.	Inventory	320		=320/160 = 2 per unit
	Cash		320
Feb 10a	Accounts Receivable	18,850		=130*145
	Sales Revenue		18,850
Feb 10b	Cost of goods sold	10,530		=3600+(90*(75+2))
	Inventory		10,530
Feb 15a	Unearned Revenue	4,950
	Sales Revenue		4,950
Feb 15b	Cost of goods sold	2,695		=35*(75+2)
	Inventory		2,695
Feb 15c	Sales Returns and Allowance	1,450		=10*145
	Accounts Receivable		1,450
Feb 15d	Inventory	770		=10*(75+2)
	Cost of goods sold		770
Feb 16.	Wages expense	2,000
	Cash		2,000
Feb 17.	Accounts Payable	12,000
	Cash		11,760
	Inventory		240	=12,000*2%
Feb 18.	Allowance for doubtful accounts	1,600
	Accounts Receivable		1,600
Feb 19a	Rent expense	2,500
	Accounts Payable	2,500
	Cash		5,000
Feb 19b	Cash	9,070		=(9,200-6,500)+(6,500*98%)
	Sales discount	130		=6,500*2%
	Accounts Receivable		9,200
Feb 26a	Accounts Receivable	520
	Allowance for doubtful accounts		520
Feb 26b	Cash	520
	Accounts Receivable		520
Feb 27.	Utility expense	550
	Accounts Payable		550
Feb 28.	Dividend declared	650
	Cash		650
Adjusting entries
Feb 29a	Wages expense	2,000
	Wages Payable		2,000
Feb 29b	Bad debts expense	880		Workings below
	Allowance for doubtful accounts		880
Feb 29c	Interest expense	160		=16,000*12%*1/12
	Interest Payable		160
Feb 29d	Interest Receivable	14		=1,800*9%*1/12
	Interest revenue		14
Closing entries
Date	Account	Debit	Credit
CJE 1	Sales Revenue	23,800
	Interest revenue	14
	Sales Returns and Allowance		1,450
	Sales discount		130
	Retained Earnings		22,234
CJE 2	Retained Earnings	21,195
	Cost of goods sold		12,455
	Bad debts expense		880
	Insurance expense		650
	Interest expense		160
	Rent expense		2,500
	Utility expense		550
	Wages expense		4,000
CJE 3	Retained Earnings	650
	Dividend declared		650
	Workings
	Allowance for doubful debts
	Opening balance - Allowance	1,500	credit
Feb 18.	Write off	(1,600)	debit
Feb 26a	Cash recovered	520	credit
Feb 29.	Unadjusted Balance	420	credit
	Adjusted Balance @ 8% of AR	1,300	credit	=16,250*8%
	Bad debt expense	880		=1,300-420

Date Credit $ 10,530 Wally's Widget Company (wwc) T Accounts Date Debit Date Credit Cash Op bal $20,420 Feb 2. $ 650 Feb 19b $ 9,070 Feb 6. $ 320 Feb 16. $ 2,000 Feb 17. $ 11,760 Feb 19a $ 5,000 Feb 26b $ 520 Feb 28. $ 650 Op bal Feb 10a Debit Date Credit Accounts Receivable $11,450 Feb 1. $ 1,800 $ 18,850 Feb 150 $ 1,450 Feb 18. $ 1,600 Feb 19b $ 9,200 $ 520 Feb 26b $ 520 Date Debit Date Credit Date Allowance for Doubtful Accounts Feb 18. $ 1,600 Op bal $ 1,500 Op bal Feb 26a $ 520 Feb 5. Feb 295 $ 880 Feb 6. Feb 150 Debit Date Inventory $3,600 Feb 10a $ 12,000 $ 320 $ 770 Feb 15b Feb 17. $ 2,695 $ 240 Feb 26a Bal. Bal. $ 1,300 Bal. $ 9,630 Notes Receivable $ 1,800 $ 16,250 Interest Receivable $ 14 $ 3,225 Unearned Revenue $ 4,950 Op bal Feb 1. Bal. Accounts Payable Op bal $ 12,000 Feb 5. $ 2,500 Feb 27. Feb 290 Feb 15a $ 4,950 Feb 17. Feb 19a $ 2,500 $ 12,000 $ 550 Bal. $ Bal. $ 14 Bal. $ 550 $ - 1,800 Wages Payable Feb 29a Notes payable Op bal Interest payable Feb 290 Contributed Capital Op bal $ 2,000 $ 160 $ 16,000 $ 6,200 $ 2,000 $ 160 Bal. Retained Earnings $ 21,195 Op bal $ 650 CJE 1 Bal. Dividend 650 CJE 3 Bal. Sales Revenue $ 23,800 Feb 10a Feb 15a $ 16,000 Bal. $ 6,200 Sales Returns & Allowances $ 18,850 Feb 150 $ 1,450 CJE1 $ 1,450 $ 4,950 Feb 28. $ $ 650 CJE1 CJE 2 CJE 3 $ 4,320 $ 22,234 $ 4,709 Bal. $ - Bal. Bal. Sales discounts 130 CJE1 $ . Cost of goods sold $10,530 Feb 150 $ 2,695 CJE 2 Bal. Interest Revenue $ 14 Feb 290 $ 1,450 Bad Debt expense $ 880 CJE 2 Feb 19b $ $ 130 CJE1 $ 14 Feb 29b $ 880 Feb 10b Feb 15b $ $ 770 12,455 Bal. Bal. $ - Bal. $ . Insurance expense $ 650 CJE 2 $ Interest expense $ 160 CJE 2 Bal. Rent expense $ 2,500 CJE 2 $ - Utility expense $ 550 CJE 2 Feb 2. $ 650 Feb 290 $ 160 Feb 19a $2,500 Feb 27. $ 550 Bal. Bal. S - Bal. $ Bal. $ .. $ . Wages expense $ 2,000 CJE 2 $ 2,000 $ 4,000 Feb 16. Feb 29a Bal. $ .

Adjusted TB Debit Credit 9,630 16,250 1,300 3,225 1,800 14 550 Wally's Widget Company (WWc) Account Names Cash Accounts Receivable Allowance for doubtful accounts Inventory Note Receivable Interest Receivable Accounts Payable Unearned Revenue Wages Payable Interest Payable Notes Payable Contributed Capital Retained Earnings Dividend declared Sales Revenue Sales Returns and Allowance Sales discount Cost of goods sold Interest revenue Bad debts expense Insurance expense Interest expense Rent expense Utility expense Wages expense Totals 2,000 160 16,000 6,200 4,320 650 23,800 1,450 130 12,455 880 650 160 2,500 550 4,000 54,344 54,344