Critical Thinking Problem $5\mathrm{.}2($Static$)$ Worksheet and Financial Statements

The account balances for the Wesson InternationCritical Thinking Problem $5\mathrm{.}2($Static$)$ Worksheet and Financial Statements

The account balances for the Wesson International Company on January $31,20$X$1,$ follow. The balances shown are after the first month of operations.

$101$ Cash $ $36,950401$ Fees income $ $61,850$

$111$ Accounts receivable $6,800511$ Advertising expense $3,000$

$121$ Supplies $4,300514$ Depreciation expense$$Equipment $0$

$131$ Prepaid insurance $30,000517$ Insurance expense $0$

$141$ Equipment $48,000518$ Rent expense $5,000$

$142$ Accumulated depreciation$$Equipment $0519$ Salaries expense $13,400$

$202$ Accounts payable $12,000520$ Supplies expense $0$

$301$ Rickyl Wesson, Capital $80,000523$ Telephone expense $700$

$302$ Rickyl Wesson, Drawing $4,000524$ Utilities expense $1,700$

Adjustments:

Supplies used during the month amounted to $$2,100.$

The amount in the Prepaid Insurance account represents a payment made on January $1,20$X$1,$ for six months of insurance coverage.

The equipment, purchased on January $1,20$X$1,$ has an estimated useful life of $10$ years with no salvage value. The firm uses the straight$-$line method of depreciation.al Company on January $31,20$X$1,$ follow. The balances shown are after the first month of operations.

$101$ Cash $ $36,950401$ Fees income $ $61,850$

$111$ Accounts receivable $6,800511$ Advertising expense $3,000$

$121$ Supplies $4,300514$ Depreciation expense$$Equipment $0$

$131$ Prepaid insurance $30,000517$ Insurance expense $0$

$141$ Equipment $48,000518$ Rent expense $5,000$

$142$ Accumulated depreciation$$Equipment $0519$ Salaries expense $13,400$

$202$ Accounts payable $12,000520$ Supplies expense $0$

$301$ Rickyl Wesson, Capital $80,000523$ Telephone expense $700$

$302$ Rickyl Wesson, Drawing $4,000524$ Utilities expense $1,700$

Adjustments:

Supplies used during the month amounted to $$2,100.$

The amount in the Prepaid Insurance account represents a payment made on January $1,20$X$1,$ for six months of insurance coverage.

The equipment, purchased on January $1,20$X$1,$ has an estimated useful life of $10$ years with no salvage value. The firm uses the straight$-$line method of depreciation.b