Question

***** please complete the 2 orange cells.

Chapter 14 problems i Saved Nancy Howe, your staff assistant on the April 30, 20X2, audit of Wilcox Company, was transferred to another audit engagement before she could complete the audit of unrecorded accounts payable. Her working paper, which you have reviewed and are satisfied is complete, appears below. points Wilcox Company Unrecorded Accounts Payable April 30, 20X2 M-1-1 eBook Invoice Date Amount Vendor and Description Hill & Harper-unpaid legal fees at Apr. 30, X2 (see lawyer's letter at M-4) Print $ 1,000y References Apr.1,x2 Drew Insurance Agency-unpaid premium at year-end on fire insurance for period Apr. 1, X2- Mar. 31, X3 (see insurance broker letter at J- 1-1). Payment made on May 7, 20x2. 1,800y Apr.30,X2 Mays and Sage, Stockbrokers-advice for 100 shares of Madison Ltd. common stock (settlement date May 7, X2) 2,125y Lane Company-shipment received Apr. 30, X2 per receiver no. 3361 and included in Apr. 30, X2, physical inventory; invoice not yet received (amount is per purchase order) $ 5,863y 10,788 y-Examined document described. In my opinion, the $10,788 adjustment includes all material unrecorded accounts payable. N.A.H. May 29, X2 2018 Prepare a proposed adjusting journal entry for the unrecorded accounts payable of Wilcox Company at April 30, 20X2. The amounts are material. (Do not deal with income taxes.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate computations.) View transaction list View journal entry worksheet Credit No 1 Date April 30, 20X2 Debit 2,125 General Journal Marketable securities Unexpired insurance Insurance expense Professional fees expense Cost of goods sold Accounts payable 1,000 5,863 10,788

*** Unexpired insurance = 1750 or 1800 are wrong answers

****Insurance expense= 50 is a wrong answer

Answer 1

- Gredit (1 No 1 Date April0,20x2 1 General Journal Debit ($) / Marketable Securities 2125 Unexpired Insurance (rvote 1) | Insurance expense Create 1) Profesional fees expense 1000 5863 cost of goods sold Account payable 1650 150 10,788 (Note ) alculation of unexhired insurance and insurance expenses Unexpired insurance = 1800 x1 - $1650 insurance expense = 1800 x-b a $150