The following events occur during September:Webworks purchases supplies worth $120 on account.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.On account, Webworks purchases thirty keyboards for $105 each and fifty flash drives for $11 each.Webworks starts and completes five more Web sites and bills clients for $3,000.Webworks pays Nancy $500 for her work during the first three weeks of September.Webworks sells 40 keyboards for $6,000 and 120 flash drives for $2,400 cash.Webworks collects $2,500 in accounts receivable.Webworks pays off its salaries payable from August.Webworks pays off $5,500 of its accounts payable.Webworks pays off $5,000 of its outstanding note payable.Webworks pays Leon salary of $2,000.Webworks pays taxes of $795 in cash.Required:Prepare journal entries for the above events.Post the journal entries to T-accounts.Prepare an unadjusted trial balance for Webworks for September.Prepare adjusting entries for the following and post them to your T-accounts.Webworks owes Nancy $300 for her work during the last week of September.Leon’s parents let him know that Webworks owes $275 toward the electricity bill. Webworks will pay them in October.Webworks determines that it has $70 worth of supplies remaining at the end of September.Prepaid rent should be adjusted for September’s portion.Webworks is continuing to accrue bad debts so that the allowance for doubtful accounts is 10 percent of accounts receivable.Prepare an adjusted trial balance.Prepare financial statements for September. cah contain viruses. Unless you need to edit, it's safer to stay in Protected View.Enable EditingCurrentG.1.WebworksIncome StatementWebworksBalance SheetRevenue2300AssetsLiabilitiesExpensesElectricity ExpenseWages ExpenseSupplies ExpenseDebt200150700140105Currentప్రీగరో CashAcct ReceivableSuppliesprepaid rent,AllowanceTotal Current AssetsCurrentAccounts PayElectricity PayableWages Payable5720240.00105050200400-105945Total Expenses-1595S 7,115.00500940.00Unearned RevTotal Current Liabilitiesincome before taxestax expensе0.300NoncurrentNoncurrentnet incomeS 705.00Computer and EquipmentS 7,000.00Notes PayableS10,000.0019Owner's Equity202122232425 Retained Earnings julyOwner CapitalRetained Earnings, July STotal Owner's Equity20001,1753,175WebworksStatement of Retained Earnings5 470.00705Total AssetsS14,115.00Total Liabilities and Equity S14,11526 Net Income27705S1,175.00Retained Earnings, July282930131323334353637Chapter Five journalt accounts templateTrial balance templateSheet8Ready47°F A GType here to search%24

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Description: The following events occur during September:Webworks purchases supplies worth $120 on account.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

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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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The following events occur during September:

Webworks purchases supplies worth $120 on account.
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.
On account, Webworks purchases thirty keyboards for $105 each and fifty flash drives for $11 each.
Webworks starts and completes five more Web sites and bills clients for $3,000.
Webworks pays Nancy $500 for her work during the first three weeks of September.
Webworks sells 40 keyboards for $6,000 and 120 flash drives for $2,400 cash.
Webworks collects $2,500 in accounts receivable.
Webworks pays off its salaries payable from August.
Webworks pays off $5,500 of its accounts payable.
Webworks pays off $5,000 of its outstanding note payable.
Webworks pays Leon salary of $2,000.
Webworks pays taxes of $795 in cash.

Required:

Prepare journal entries for the above events.
Post the journal entries to T-accounts.
Prepare an unadjusted trial balance for Webworks for September.
Prepare adjusting entries for the following and post them to your T-accounts.
Webworks owes Nancy $300 for her work during the last week of September.
Leon’s parents let him know that Webworks owes $275 toward the electricity bill. Webworks will pay them in October.
Webworks determines that it has $70 worth of supplies remaining at the end of September.
Prepaid rent should be adjusted for September’s portion.
Webworks is continuing to accrue bad debts so that the allowance for doubtful accounts is 10 percent of accounts receivable.
Prepare an adjusted trial balance.
Prepare financial statements for September.

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nless you need to edit, it's safer to stay in Protected View.
Enable Editing
Current
G.
1.
Webworks
Income Statement
Webworks
Balance Sheet
Revenue
2300
Assets
Liabilities
Expenses
Electricity Expense
Wages Expense
Supplies Expense
Debt
200
150
700
140
105
Current
ప్రీగరో Cash
Acct Receivable
Supplies
prepaid rent,
Allowance
Total Current Assets
Current
Accounts Pay
Electricity Payable
Wages Payable
5720
240.00
1050
50
200
400
-105
945
Total Expenses
-1595
S 7,115.00
500
940.00
Unearned Rev
Total Current Liabilities
income before taxes
tax expensе
0.
300
Noncurrent
Noncurrent
net income
S 705.00
Computer and Equipment
S 7,000.00
Notes Payable
S10,000.00
19
Owner's Equity
20
21
22
23
24
25 Retained Earnings july
Owner Capital
Retained Earnings, July S
Total Owner's Equity
2000
1,175
3,175
Webworks
Statement of Retained Earnings
5 470.00
705
Total Assets
S14,115.00
Total Liabilities and Equity S
14,115
26 Net Income
27
705
S1,175.00
Retained Earnings, July
28
29
30
131
32
33
34
35
36
37
Chapter Five journal
t accounts template
Trial balance template
Sheet8
Ready
47°F A G
Type here to search
%24

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Webworks purchases supplies worth $120 on account. 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.