Question

I need help finding out what I am missing in the income statement

Accounts Receivable Allowance for Doubtful Accounts Inventory (45 units) $20,570 Unearned Revenue (40 units) $ 11,600 Accounts Payable (Jan Rent) $ (1,550) Notes Payable $ 4,050 Contributed Capital $5,000 $2,600 $16,500 $6,300 4,270 Retained Earnings-Feb 1, 2012 . WWC establishes a policy that it will sell inventory at $150 per unit. . In January, WWC received a $5,000 advance for 40 units, as reflected in Unearned Revenue WWC's February 1 inventory balance consisted of 45 units at a total cost of $4,050. . wwC's note payable accrues interest at a 12% annual rate. wwcwluse hOrmethd adn perpetual bais

Answer 1

Date	Explanations	Debit	Credit
1-Feb	Notes Receivables	1900
	Accounts Receivable		1900
	Amount due from kitkat converted to notes
2-Feb	Insurance expense	700
	Cash		700
	insurance expense paid
5-Feb	Inventory	12750
	Accounts Payable		12750
	Inventory purchased on account
	Per unit cost
	= 12750 / 170
	= $ 75
5-Feb	Freight In	340
	Cash		340
	freight paid on inventory purchased
10-Feb	Accounts receivable	21000
	Sales		21000
	Inventory sold on account
10-Feb	Cost of Goods Sold	11175
	Inventory		11175
	Cost of Goods Sold is calculated as
	opening stock = 45 units , 4050
	Purchased 95 units , 7125
15-Feb	Unearned revenue	5000
	Accounts Receivable	1000
	Inventory Sold		5000
15-Feb	Cost of Goods Sold	3000
	Inventory		3000
	Cost of Goods Sold is calculated as
	Purchased units
	40 Units , $ 3000
15-Feb	Sales Return and allowances	2250
	Accounts Receivable		2250
	Goods returned by customer
15-Feb	Inventory	1125
	Cost of goods Sold		1125
	cost of goods sold reversed
16-Feb	Wages Expense	2100
	Cash		2100
	wages Expense paid
17-Feb	Accounts Payable	12750
	Purchase Discounts		255
	Cash		12495
	Amount paid to supplier for old purchases
18-Feb	Allowance for doubtful accounts	1650
	Accounts receivable		1650
	Amount written off
19-Feb	Rent Expense	2600
	Accounts Payable	2600
	Cash		5200
19-Feb	Cash	9160
	Sales Discount	140
	Accounts Receivable		9300
	Amount received from customers
26-Feb	Accounts Receivable	530
	Allowance for doubtful accounts		530
	Allowance for doubtful accounts reversed
26-Feb	Cash	530
	Accounts receivable		530
	Amount received from debt previously written off
27-Feb	Utility expense	600
	Accounts Payable		600
	Utility expenses due
28-Feb	Dividends	750
	Cash		750
	Dividends paid in cash
29-Feb	Wages expense	2100
	Wages Payable		2100
	amount due to employees
29-Feb	Bad Debt expense	1050
	Allowance for doubtful accounts		1050
	Allowance created
	Accounts Receivable - beginning	11600
	Fresh Due during period	22000	( 21000 + 1000)
	Converted to Notes Payable	-1900
	Returns	-2250
	Net written off ( 1650 -530)	-1120
	Amounts Received ( 9300+530)	-9830
	Due at end	18500
	Allowance created 8 %	1480
	Balance in Allowance account	430
	( 1550 - 1650 + 530)
	Provision created ( 1480 - 430)	1050
29-Feb	Interest Expense	165
	Interest Payable		165
	Interest Expense due
29-Feb	Accrued Interest	19
	Interest Revenue		19
	Accrued Interest due