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: es 4,650 Cash $19,520 Unearned Revenue (25 units) $ Accounts Receivable Allowance for Doubtful Accounts $10,550 Accounts Payable (Jan Rent) $1,900 13,000 $(1200) Notes Payable 5,600 $ $ 2100 Contributed Capital Inventory (30 units) Retained Earnings - Feb 1, 2012 5,820 $ 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% anniual rate Prey 1 of 1 Next

Answer 1

Following are the journal entries

1) Entry for note issued by Kit kat for not able to pay balance amount

Notes Receivable $1,500

Account Receivable/ Kit kat's A/c $1,500

2) Insurance premium A/c $800

Cash $800

(Being Insurance expense for the month of february)

3) Purchase / Inventory A/c $12,750

Accounts Payable $12,750

4) Fedrral Expenses $340

cash $340

( Being Expenses for early Deleivery Charged)