Prepare journal entries for the above events. B. Post the journal entries to T-accounts. C. Prepare an unadjusted trial balance for Webworks for September.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CREATE A TRIAL BALANCE AND FINANCIAL STATEMENTS WITH THE FOLLOWING INFORMATION. EVERYTHING IS BELOW INCLUDING PICTURES OF THE PREVIOUS MONTHS FINANCIAL STATEMENTS

The following events occur during September:

a. Webworks purchases supplies worth $120 on account.

b. At the beginning of September, Webworks had 19 keyboards costing $100 each and 110 flash drives costing $10 each. Webworks has decided to use perpetual FIFO to cost its inventory.

c. On account, Webworks purchases thirty keyboards for $105 each and fifty flash drives for $11 each.

d. Webworks starts and completes five more Web sites and bills clients for $3,000.

e. Webworks pays Nancy $500 for her work during the first three weeks of September.

f. Webworks sells 40 keyboards for $6,000 and 120 flash drives for $2,400 cash.

g. Webworks collects $2,500 in accounts receivable.

h. Webworks pays off its salaries payable from August.

i. Webworks pays off $5,500 of its accounts payable.

j. Webworks pays off $5,000 of its outstanding note payable.

k. Webworks pays Leon salary of $2,000.

l. Webworks pays taxes of $795 in cash.

Required:

A. Prepare journal entries for the above events.

B. Post the journal entries to T-accounts.

C. Prepare an unadjusted trial balance for Webworks for September.

D. Prepare adjusting entries for the following and post them to your T-accounts.

m. Webworks owes Nancy $300 for her work during the last week of September.

n. Leon’s parents let him know that Webworks owes $275 toward the electricity bill. Webworks will pay them in October.

o. Webworks determines that it has $70 worth of supplies remaining at the end of September.

p. Prepaid rent should be adjusted for September’s portion.

q. Webworks is continuing to accrue bad debts so that the allowance for doubtful accounts is 10 percent of accounts receivable.

E. Prepare an adjusted trial balance.

F. Prepare financial statements for September.

Numbers File
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Table
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Taxt
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August journal entries
Chapter Three t-accounts
Chapter Three Financials
Chapter three trial balance
Table
Cell
Text
Arrange
D
F
G
H
K
Sign in
Income Statement
-
As Of August 31, 2020
$ 3,200.00
Revenue
4
$ 7,500.00
5100
Sales
6
Less COGS
Current
---
$ 2,400.00
$ 5,600.00
net sales
Cash
Table Styles
a
total revenue
Acct Recei
Less allowance for Doubtful Acco
Net Acct Rece
Supplies
Inventory
10
Table Options
Expenses
12 Electricity Expense
Rent Expense
14 Wages Expense
Supplies Expense
Bad Debt Expense
11
| Title
250
OCaption
13
200
prepaid rent
Total Current
2850
90
Headers & Footer
15
Noncurre
Computer and Equ
16
120
日0。
$ (3,510.00)
17
Total Expenses
18
$ 2,090.00
34 :
19
income before taxes
Rows
20
tax expense
475
Columns
18 :
21
$ 1.615.00
22
net income
Table Font Size
A A
23
24
25
Table Outline
25
Total Asse
Wobworks
Statement of Retained Earnings
As of August 31, 2020
1 pt
27
28
OOutline Table Title
29
30 Retained Earnings, June 1
31 Net Income
$
1,175.00
$
1,615.00
Gridlines
32
Retained Earnings, June 30
33
2,790
34
Alternating Row Color
tv
Transcribed Image Text:Numbers File Edit Insert Table Organize Format Arrange View Share Window Help 1 = * 88% Sun 12:02 AM ... Chapter three homework solution 2 白 回 Ev 125% v View Zoom Add Category Insert Table Chart Taxt Shape Media Comment Collaborate Format Organize anshot in ma + August journal entries Chapter Three t-accounts Chapter Three Financials Chapter three trial balance Table Cell Text Arrange D F G H K Sign in Income Statement - As Of August 31, 2020 $ 3,200.00 Revenue 4 $ 7,500.00 5100 Sales 6 Less COGS Current --- $ 2,400.00 $ 5,600.00 net sales Cash Table Styles a total revenue Acct Recei Less allowance for Doubtful Acco Net Acct Rece Supplies Inventory 10 Table Options Expenses 12 Electricity Expense Rent Expense 14 Wages Expense Supplies Expense Bad Debt Expense 11 | Title 250 OCaption 13 200 prepaid rent Total Current 2850 90 Headers & Footer 15 Noncurre Computer and Equ 16 120 日0。 $ (3,510.00) 17 Total Expenses 18 $ 2,090.00 34 : 19 income before taxes Rows 20 tax expense 475 Columns 18 : 21 $ 1.615.00 22 net income Table Font Size A A 23 24 25 Table Outline 25 Total Asse Wobworks Statement of Retained Earnings As of August 31, 2020 1 pt 27 28 OOutline Table Title 29 30 Retained Earnings, June 1 31 Net Income $ 1,175.00 $ 1,615.00 Gridlines 32 Retained Earnings, June 30 33 2,790 34 Alternating Row Color tv
File Edit Insert
Table Organize Format
Arrange View Share
Window Help
1 = * 88% D
Sun 12:02 AM
...
Chapter three homework solution 2
白 回
EV 125% v
E = TI Av
View
Zoom
Add Category
Insert
Table
Chart
Text
Shapa
Media Commant
Collaborate
Format Organize anshot in ma
+
August journal entries
Chapter Three t-accounts
Chapter Three Financials
Chapter three trial balance
Table
Cell
Text
Arrange
wenuorve
K
M
R
Dalance aneet
Sign in
3
31-Aug-20
4
Assets
Llabilitles
5
Current
Current
Cash
6,445.00
Accounts Pay
2$
2,690.00
---
Acct Receivable
1,250.00
Table Styles
9 Less allowance for Doubtful Accounts
10
$
$
Wages Payable
125.00
250
Net Acct Receivable
1,125.00
$
$ 3,000.00
$
Unearned Rev
Supplies
Inventory
prepaid rent
11
60.00
100
Table Options
12
$
Total Current Liabilities
$
3,040.00
O Title
13
200.00
Caption
14
Total Current Assets
$ 10,830.00
15
Noncurrent
Headers & Footer
16
Noncurrent
17
Computer and Equipment
$
7,000.00
Notes Payable
$ 10,000.00
16
19
Owner's Equity
34 :
20
Rows
21
Dwner Capital
2000
Columns
18 :
22
Retained Earnings, June 30
Total Owner's Equity
$
2,790
$
4,790
23
Table Font Size
A A
24
25
26
Total Assets
$ 17,830.00
Total Liabilities and Equity $
17,830
Table Outline
27
1 pt
28
29
OOutline Table Title
30
31
32
Gridlines
33
34
Alternating Row Color
11
tv
Transcribed Image Text:File Edit Insert Table Organize Format Arrange View Share Window Help 1 = * 88% D Sun 12:02 AM ... Chapter three homework solution 2 白 回 EV 125% v E = TI Av View Zoom Add Category Insert Table Chart Text Shapa Media Commant Collaborate Format Organize anshot in ma + August journal entries Chapter Three t-accounts Chapter Three Financials Chapter three trial balance Table Cell Text Arrange wenuorve K M R Dalance aneet Sign in 3 31-Aug-20 4 Assets Llabilitles 5 Current Current Cash 6,445.00 Accounts Pay 2$ 2,690.00 --- Acct Receivable 1,250.00 Table Styles 9 Less allowance for Doubtful Accounts 10 $ $ Wages Payable 125.00 250 Net Acct Receivable 1,125.00 $ $ 3,000.00 $ Unearned Rev Supplies Inventory prepaid rent 11 60.00 100 Table Options 12 $ Total Current Liabilities $ 3,040.00 O Title 13 200.00 Caption 14 Total Current Assets $ 10,830.00 15 Noncurrent Headers & Footer 16 Noncurrent 17 Computer and Equipment $ 7,000.00 Notes Payable $ 10,000.00 16 19 Owner's Equity 34 : 20 Rows 21 Dwner Capital 2000 Columns 18 : 22 Retained Earnings, June 30 Total Owner's Equity $ 2,790 $ 4,790 23 Table Font Size A A 24 25 26 Total Assets $ 17,830.00 Total Liabilities and Equity $ 17,830 Table Outline 27 1 pt 28 29 OOutline Table Title 30 31 32 Gridlines 33 34 Alternating Row Color 11 tv
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