Question

Required information [The following information applies to the questions displayed below.) 25 points 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: eBook References Cash $ 21,170 Unearned Revenue (40 units) $ 5,200 $12,200 Accounts Payable (Jan Rent) $ Accounts Receivable Allowance for Doubtful Accounts Inventory (45 units) $ (1,750) Notes Payable $ 14,500 $ 3,825 Contributed Capital Retained Earnings - Feb 1, 2012 6,700 6,045 · WWC establishes a policy that it will sell inventory at $165 per unit. In January, WWC received a $5,200 advance for 40 units, as reflected in Unearned Revenue. • WWC's February 1 inventory balance consisted of 45 units at a total cost of $3,825. . 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. February Transactions Included in WWC's February 1 Accounts Receivable balance is a $1,500 account
Please help me make the following T-Accounts:

Post all February entries (transactions and adjustments) to the T-accounts.

Answer 1

T accounts

Cash
Bal 02/01	21,170	02/02	900
02/19	9,570	02/05	450
02/26	570	02/16	2,500
		02/16	11,025
		02/19	6,000
		02/28	650
Bal. 02/29	9,785
Accounts Receivable
Bal. 02/01	12,200	02/01	1,500
02/10	19,800	02/15	1,650
02/15	1,400	02/18	1,850
02/26	570	02/19	9,700
		02/26	570
Bal. 02/29	18,700
Allowance for Doubtful Accounts
02/18	1,850	Bal. 02/01	1,750
		02/26	570
		Adj. 02/29	652
		Bal. 02/29 ( $ 18,700 x 6 % )	1,122
Interest Receivable
Bal. 02/01	0
02/29	11.25
Bal. 02/29	11.25
Notes Receivable
Bal. 02/01	0
02/01	1,500
Bal. 02/29	1,500
Inventory
Bal. 02/01	3,825	02/10	9,675
02/05	11,250	02/15	3,120
02/05	450	02/16	225
02/15	780
Bal 02/29	3,285
Accounts Payable
02/16	11,250	Bal. 02/01	3,000
02/19	3,000	02/05	11,250
		02/27	800
		Bal. 02/29	800
Unearned Revenue
02/15	5,200	Bal. 02/01	5,200
		Bal 02/29	0
Salaries and Wages Payable
		Bal. 02/01	0
		Adj. 02/29	2,500
		Bal. 02/29	2,500
Interest Payable
		Bal. 02/01	0
		Adj. 02/29	145
		Bal. 02/29	145
Notes Payable
		Bal. 02/01	14,500
		Bal. 02/29	14,500
Contributed Capital
		Bal. 02/01	6,700
		Bal. 02/29	6,700
Retained Earnings
		Bal. 02/01	6,045
		Bal 02/29	6,045
Sales Revenue
		Bal. 02/01	0
		02/10	19,800
		02/15	6,600
		Bal. 02/29	26,400
Sales Returns and Allowances
Bal. 02/01	0
02/15	1,650
Bal. 02/29	1,650
Sales Discounts
Bal. 02/01	0
02/19	130
Bal. 02/29	130
Interest Revenue
		Bal. 02/01	0
		Adj. 02/29	11.25
		Bal. 02/29	11.25
Cost of Goods Sold
Bal. 02/01	0	02/15	780
02/10	9,675
02/15	3,120
Bal.	12,015
Salaries and Wages Expense
Bala. 02/01	0
02/16	2,500
Adj. 02/29	2,500
Bal. 02/29	5,000

Journal entries:

In the books of Wally's Widget Company:

Date	Account Titles	Debit	Credit
		$	$
02/01	Notes Receivable	1,500
	Accounts Receivable		1,500
02/02	Insurance Expense	900
	Cash		900
02/05	Inventory ( 150 units @ $ 75)	11,250
	Accounts Payable		11,250
02/05	Inventory	450
	Cash		450
02/10	Accounts Receivable ( 120 units @ $ 165 )	19,800
	Sales		19,800
02/10	Cost of Goods Sold ( 45 units @ $ 85 + 75 units @ $ 78 )	9,675
	Inventory		9,675
02/15	Unearned Revenue	5,200
	Accounts Receivable	1,400
	Sales		6,600
02/15	Cost of Goods Sold ( 40 units @ $ 78 )	3,120
	Inventory		3,120
02/15	Sales Returns and Allowances	1,650
	Accounts Receivable		1,650
02/15	Inventory	780
	Cost of Goods Sold		780
02/16	Salaries and Wages Expense	2,500
	Cash		2,500
02/16	Accounts Payable	11,250
	Inventory		225
	Cash		11,025
02/18	Allowance for Doubtful Accounts	1,850
	Accounts Receivable		1,850
02/19	Accounts Payable	3,000
	Rent Expense	3,000
	Cash		6,000
02/19	Cash	9,570
	Sales Discounts	130
	Accounts Receivable		9,700
02/26	Accounts Receivable	570
	Allowance for Doubtful Accounts		570
02/26	Cash	570
	Accounts Receivable		570
02/27	Utilities Expense	800
	Accounts Payable		800
02/28	Dividends	650
	Cash		650
Adjusting Entries
02/29	Salaries and Wages Expense	2,500
	Salaries and Wages Payable		2,500
02/29	Bad Debt Expense	652
	Allowance for Doubtful Accounts		652
02/29	Interest Expense	145
	Interest Payable		145
02/29	Interest Receivable	11.25
	Interest Revenue		11.25