Help last 7 question

Help part 2 1 to 7

Required: 1. What is the wWC's gross profit for February? Gross profit 2. What is the gross profit percentage? (Round your answer to 1 decimal place.) Gross profit percentage % 3. What were WWC's net sales for February? Net sales 4. (Round your answers to 2 decimal places.) If WWC had chosen to use the percentage of sales method, taking 2 % of sales, instead of using the aging method, WwC would have reported fbad debt expense for February and a net Accounts Receivable of 5. How many units are in ending inventory? Number of units 6. What is the cost per unit of the ending inventory? Cost of the ending inventory per unit 7. If WWC had chosen LIFO, calculate its February cost of goods sold. Cost of goods sold [The following information applies to the questions displayed below.] 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: $ 4,500 $1,600 $15,000 5,300 $ 4,920 $19,070 Unearned Revenue (35 units) $10,100 Accounts Payable (Jan Rent) (1,050) Notes Payable $3,200 Contributed Capital Cash Accounts Receivable Allowance for Doubtful Accounts Inventory (40 units) Retained Earnings Feb 1, 2012 wWC establishes a policy that it will sell inventory at $170 per unit. In January, WWC received a $4,500 advance for 35 units, as reflected in Unearned Revenue. wWC's February 1 inventory balance consisted of 40 units at a total cost of $3,200. 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 02/01 Included in WWC's February 1 Accounts Receivable balance is a $1,800 account due from Kit Kat, a wWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,800 balance to a note, and Kit Kat signs a 6-month note, at 10% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012 02/02 WWC paid a $650 insurance premium covering the month of February. The amount paid is recorded directly as an expense. 02/05 An additional 140 units of inventory are purchased on account by WWC for $10,500 terms 2/15 n30 02/05 WWC paid Federal Express $420 to have the 140 units of inventory delivered overnight. Delivery oCcurred on 02/06 02/10 Sales of 110 units of inventory occurred during the period of 02/07 02/10. The sales terms are 2/10, net 30 02/15 The 35 units that were paid for in advance and recorded in January are delivered to the customer. 02/15 20 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase. 02/16 WWC pays the first 2 weeks wages to the employees. The total paid is $2,500. 02/17 Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs. 02/18 Wrote off a customer's account in the amount of $1,150. 02/19 $3,200 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense. 02/19 Collected $8,300 of customers' Accounts Receivable. Of the $8,300, the discount was taken by customers on $5,000 of account balances; therefore WWC received less than $8,300. 02/26 WWC recovered $430 cash from the customer whose account had previously been written off (see 02/18). 02/27 A $650 utility bill for February arrived. It is due on March 15 and will be paid then 02/28 WWC declared and paid a $900 cash dividend. Adjusting Entries: 02/29 Record the $2,500 employee salary that is owed but will be paid March 1. 02/29 WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts. 02/29 Record February interest expense accrued on the note payable. 02/29 Record one month's interest earned Kit Kat's note (see 02/01). No Date General Journal Debit Credit 1 Feb. 1 Notes Receivable 1,800 Accounts Receivable 1,800 Feb. 2 2 Insurance Expense 650 Cash 650 10.500 3 Feb. 5 Inventory Accounts Payable 10,500 Inventory 4 Feb. 6 120 Cash 420 Feb. 10a Accounts Receivable 18,700 5 Sales Revenue 18,700 Feb. 10b 6 Cost of Goods Sold 8.660 Inventory 8,660 Feb. 15a 4,500 7 Unearned Revenue 4,500 Sales Revenue Cost of Goods Sold Feb. 15b 2.730 Inventory 2,730 Inventory 1,560 9 Feb. 15c 1.560 Cost of Goods Sold Sales Returns and Allowance 10 Feb. 15d 3,400 3,400 Accounts Receivable Feb. 16 Wages Expense 2,500 11 Cash 2.500 Accounts Payable Feb. 17 12 10.500 Inventory 210 10,290 Cash 13 Feb. 18 Allowance for Doubtful Accounts 1,150 1.150 Accounts Receivable Rent Expense Feb. 19a 14 1.600 Accounts Payable 1,600 Cash 3,200 Cash 15 Feb. 19b 8,200 Sales Discounts 100 8,300 Accounts Receivable Accounts Receivable 430 16 Feb. 26a Allowance for Doubtful Accounts 430 Cash 17 Feb. 26b 430 Accounts Receivable 430 TO Feb. 26b 17 Cash 43 Acpounts Receivable 430 18 Feb. 27 Utility Expense 650 Accounts Payable 650 Dividends Declared 19 Feb. 28 900 Cash 900 Feb. 29a Wages Expense 2,500 2,500 Wages Payable Bad Debt Expense Feb. 29b 802 Allowance for Doubtful Accounts 802 Feb. 29c Interest Expense 22 150 Interest Payable 150 23 Feb. 29d Interest Receivable 15 Interest Revenue 15 Post all February entries (transactions and adjustments) to the T-accounts. Cash Accounts Receivable Beg. bal. 10,100 Beq. bal. 19,070 0 Feb. 19b 8.200 1.800 Feb. 1 650 Feb. 2 Feb. 10a 18,700 Fab. 26b Feb. 26a 420 Feb. 6 430 3,400 Feb. 15d 1.150 Feb. 18 430 2.500 Feb. 16 8,300 Feb. 19b 10,290 Feb. 17 430 Feb. 26b 3,200 Feb. 19a 900 Feb. 28 14,150 9,740 End. bal End, bal Allowance for Doubtful Accounts Inventory 3.200 Beg. bal Beg. bal. C 1,050 1.150 Feb. 18 430 Feb. 28a Feb. 5 8,660 Feb. 10b 10.500 420 Feb 6 2,730 Feb. 15b 210 Feb. 17 802 Feb. 29b Feb. 15c 1,560 1,132 End, bal 4,080 End. bal. Interest Receivable Notes Receivable Beg. bal. Beg, bal. C 0 0 15 Feb. Feb. 29d 1.800 End. bal 1,800 15 End. bal Unearned Revenue Accounts Payable Beg. bal. 4,500 Beg. bal. 1,600 10.500 Feb. 17 Feb. 19a Feb 15a 4.500 10,500 Feb. 5 650 Feb. 27 1,600 End, bal End, bal 650 20 21 Accounts Payable Unearned Revenue Bea, bal 1,600 Beg. bal. 4.500 Feb. 17 10,500 Feb. 5 Feb. 15a 4,500 10,500 Feb. 19a 650 Feb. 27 1,600 650 End, bal End, bal Interest Payable Wages Payable Beg, bal. Beg. bal 0 0 150 Feb. 29c 2,500 Feb. 29a 2.500 150 End, bal End, bal Notes Payable Contributed Capital Beg, bal. 5,300 Beg. bal 0 15,000 15.000 End, bal 5.300 End, bal Retained Earnings Dividends Declared Beg. bal CJE 2 Beg. bal, 0 4.920 0 0 900 CJE 3 19,715 CJE Feb. 28 18,682 900 CJE 3 900 End. bal. End, ba 5.053 Sales Revenue Sales Returns & Allowances Beg. bal. Beq. bal. 0 0 0 3.400 CJE 1 Feb. 15d 3,400 CJE 1 23,200 18,700 Feb. 10a 4,500 Feb. 15a End, bal. End. bal. Sales Discounts Cost of Goods Sold Beg. bal. 0 Beg, bal. 0 100 1.560 Feb. 15c Feb. 19b 100 CJE Feb. 10b 8,660 Feb. 15b 9,830 CJE 2 2,730 End, bal. End, bal. Interest Revenue Bad Debt Expense Beg. bal. Bea, bal. 0 0 0 CJE 1 802 CJE 2 15 Feb. 29d Feb. 29b 15 802 End, bal End. bal Insurance Expense Interest Expense Beg. bal Feb. 2 Beg, bal. 0 0 0 650 650 CJE 2 150 150 CJE 2 Feb. 29c End, bal End. bal. Insurance Expense 0 Interest Expense Beg. bal Beg. bal 0 0 0 Feb. 29c 150 CJE 2 Feb. 2 650 CJE 2 650 150 End. bal End. bal Rent Expense Utility Expense Beg. bal. Beg. bal 0 Feb. 19a 1,600 CJE 2 Feb. 27 650 CJE 2 1,600 650 End. bal End. bal. Wages Expense Beg. bal 0 0 5,000 CJE 2 Feb. 16 2,500 Feb. 29a 2,500 c. Prepare the financial statements at the end of February. (Balance Sheet only, items to be deducted must be indicated with a negative amount.) wWC, Inc. Income Statement For the Month Ended February 29 Revenues Sales Revenue 23.200 Less: Sales Retums and Allowances 3.400 Less: Sales Discounts 100 19.700 Net Sales Cost of Goods Sold 9,830 9.870 Gross Profit Expenses Bad Debt Expense 802 Insurance Expense 650 Interest Expense 150 Rent Expense 1,600 Utility Expense 650 Wages Expense 5,000 Total Expenses 8,852 Interest Revenue 15 1,033 Net Income WWC, Inc. Statement of Retained Earnings For the Month Ended February 29 Retained Earnings, Beginning of Period 4,920 1,033 Add: Net Income 900 Less: Dividends 5,053 Retained Earnings, End of Period WWw, Inc. Balance Sheet At February 29 Liabilities Assets Current Assets Current Liabilities $ Cash 9,740 Accounts Payable 650 Accounts Receivable 14,150 Interest Payable 150 Allowance for Doubtful Accounts (1,132) Wages Payable 2,500 Inventory 4,080 Notes Receivable 1,800 Interest Receivable 15 3,300 Total Current Assets 28,653 Total Current Liabilities Notes Payable 15,000 Total liabilities 18,300 Stockholders' Equity Contributed Capital 5,300 Retained Earnings 5,053 Total Stockholders' Equity 10,353 28,653 28,653 Total Assets Total Liabilities and Stockholders' Equity View transaction list View journal entry worksheet No Transaction General Journal Debit Credit Sales Revenue 1 1 23,200 Interest Revenue 15 Sales Discounts 100 3,400 Sales Returns and Allowances Retained Earnings 19,715 2 Retained Earnings 18,682 2 Cost of Goods Sold 9,830 Interest Expense 150 Bad Debt Expense 802 Insurance Expense 650 Rent Expense 1,600 Utility Expense 650 Wages Expense 5,000 Retained Earnings 900 3 3 900 Dividends Declared Required: 1. What is the wWC's gross profit for February? Gross profit 2. What is the gross profit percentage? (Round your answer to 1 decimal place.) Gross profit percentage % 3. What were WWC's net sales for February? Net sales 4. (Round your answers to 2 decimal places.) If WWC had chosen to use the percentage of sales method, taking 2 % of sales, instead of using the aging method, WwC would have reported fbad debt expense for February and a net Accounts Receivable of 5. How many units are in ending inventory? Number of units 6. What is the cost per unit of the ending inventory? Cost of the ending inventory per unit 7. If WWC had chosen LIFO, calculate its February cost of goods sold. Cost of goods sold [The following information applies to the questions displayed below.] 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: $ 4,500 $1,600 $15,000 5,300 $ 4,920 $19,070 Unearned Revenue (35 units) $10,100 Accounts Payable (Jan Rent) (1,050) Notes Payable $3,200 Contributed Capital Cash Accounts Receivable Allowance for Doubtful Accounts Inventory (40 units) Retained Earnings Feb 1, 2012 wWC establishes a policy that it will sell inventory at $170 per unit. In January, WWC received a $4,500 advance for 35 units, as reflected in Unearned Revenue. wWC's February 1 inventory balance consisted of 40 units at a total cost of $3,200. 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 02/01 Included in WWC's February 1 Accounts Receivable balance is a $1,800 account due from Kit Kat, a wWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,800 balance to a note, and Kit Kat signs a 6-month note, at 10% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012 02/02 WWC paid a $650 insurance premium covering the month of February. The amount paid is recorded directly as an expense. 02/05 An additional 140 units of inventory are purchased on account by WWC for $10,500 terms 2/15 n30 02/05 WWC paid Federal Express $420 to have the 140 units of inventory delivered overnight. Delivery oCcurred on 02/06 02/10 Sales of 110 units of inventory occurred during the period of 02/07 02/10. The sales terms are 2/10, net 30 02/15 The 35 units that were paid for in advance and recorded in January are delivered to the customer. 02/15 20 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase. 02/16 WWC pays the first 2 weeks wages to the employees. The total paid is $2,500. 02/17 Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs. 02/18 Wrote off a customer's account in the amount of $1,150. 02/19 $3,200 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense. 02/19 Collected $8,300 of customers' Accounts Receivable. Of the $8,300, the discount was taken by customers on $5,000 of account balances; therefore WWC received less than $8,300. 02/26 WWC recovered $430 cash from the customer whose account had previously been written off (see 02/18). 02/27 A $650 utility bill for February arrived. It is due on March 15 and will be paid then 02/28 WWC declared and paid a $900 cash dividend. Adjusting Entries: 02/29 Record the $2,500 employee salary that is owed but will be paid March 1. 02/29 WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts. 02/29 Record February interest expense accrued on the note payable. 02/29 Record one month's interest earned Kit Kat's note (see 02/01). No Date General Journal Debit Credit 1 Feb. 1 Notes Receivable 1,800 Accounts Receivable 1,800 Feb. 2 2 Insurance Expense 650 Cash 650 10.500 3 Feb. 5 Inventory Accounts Payable 10,500 Inventory 4 Feb. 6 120 Cash 420 Feb. 10a Accounts Receivable 18,700 5 Sales Revenue 18,700 Feb. 10b 6 Cost of Goods Sold 8.660 Inventory 8,660 Feb. 15a 4,500 7 Unearned Revenue 4,500 Sales Revenue Cost of Goods Sold Feb. 15b 2.730 Inventory 2,730 Inventory 1,560 9 Feb. 15c 1.560 Cost of Goods Sold Sales Returns and Allowance 10 Feb. 15d 3,400 3,400 Accounts Receivable Feb. 16 Wages Expense 2,500 11 Cash 2.500 Accounts Payable Feb. 17 12 10.500 Inventory 210 10,290 Cash 13 Feb. 18 Allowance for Doubtful Accounts 1,150 1.150 Accounts Receivable Rent Expense Feb. 19a 14 1.600 Accounts Payable 1,600 Cash 3,200 Cash 15 Feb. 19b 8,200 Sales Discounts 100 8,300 Accounts Receivable Accounts Receivable 430 16 Feb. 26a Allowance for Doubtful Accounts 430 Cash 17 Feb. 26b 430 Accounts Receivable 430 TO Feb. 26b 17 Cash 43 Acpounts Receivable 430 18 Feb. 27 Utility Expense 650 Accounts Payable 650 Dividends Declared 19 Feb. 28 900 Cash 900 Feb. 29a Wages Expense 2,500 2,500 Wages Payable Bad Debt Expense Feb. 29b 802 Allowance for Doubtful Accounts 802 Feb. 29c Interest Expense 22 150 Interest Payable 150 23 Feb. 29d Interest Receivable 15 Interest Revenue 15 Post all February entries (transactions and adjustments) to the T-accounts. Cash Accounts Receivable Beg. bal. 10,100 Beq. bal. 19,070 0 Feb. 19b 8.200 1.800 Feb. 1 650 Feb. 2 Feb. 10a 18,700 Fab. 26b Feb. 26a 420 Feb. 6 430 3,400 Feb. 15d 1.150 Feb. 18 430 2.500 Feb. 16 8,300 Feb. 19b 10,290 Feb. 17 430 Feb. 26b 3,200 Feb. 19a 900 Feb. 28 14,150 9,740 End. bal End, bal Allowance for Doubtful Accounts Inventory 3.200 Beg. bal Beg. bal. C 1,050 1.150 Feb. 18 430 Feb. 28a Feb. 5 8,660 Feb. 10b 10.500 420 Feb 6 2,730 Feb. 15b 210 Feb. 17 802 Feb. 29b Feb. 15c 1,560 1,132 End, bal 4,080 End. bal. Interest Receivable Notes Receivable Beg. bal. Beg, bal. C 0 0 15 Feb. Feb. 29d 1.800 End. bal 1,800 15 End. bal Unearned Revenue Accounts Payable Beg. bal. 4,500 Beg. bal. 1,600 10.500 Feb. 17 Feb. 19a Feb 15a 4.500 10,500 Feb. 5 650 Feb. 27 1,600 End, bal End, bal 650 20 21 Accounts Payable Unearned Revenue Bea, bal 1,600 Beg. bal. 4.500 Feb. 17 10,500 Feb. 5 Feb. 15a 4,500 10,500 Feb. 19a 650 Feb. 27 1,600 650 End, bal End, bal Interest Payable Wages Payable Beg, bal. Beg. bal 0 0 150 Feb. 29c 2,500 Feb. 29a 2.500 150 End, bal End, bal Notes Payable Contributed Capital Beg, bal. 5,300 Beg. bal 0 15,000 15.000 End, bal 5.300 End, bal Retained Earnings Dividends Declared Beg. bal CJE 2 Beg. bal, 0 4.920 0 0 900 CJE 3 19,715 CJE Feb. 28 18,682 900 CJE 3 900 End. bal. End, ba 5.053 Sales Revenue Sales Returns & Allowances Beg. bal. Beq. bal. 0 0 0 3.400 CJE 1 Feb. 15d 3,400 CJE 1 23,200 18,700 Feb. 10a 4,500 Feb. 15a End, bal. End. bal. Sales Discounts Cost of Goods Sold Beg. bal. 0 Beg, bal. 0 100 1.560 Feb. 15c Feb. 19b 100 CJE Feb. 10b 8,660 Feb. 15b 9,830 CJE 2 2,730 End, bal. End, bal. Interest Revenue Bad Debt Expense Beg. bal. Bea, bal. 0 0 0 CJE 1 802 CJE 2 15 Feb. 29d Feb. 29b 15 802 End, bal End. bal Insurance Expense Interest Expense Beg. bal Feb. 2 Beg, bal. 0 0 0 650 650 CJE 2 150 150 CJE 2 Feb. 29c End, bal End. bal. Insurance Expense 0 Interest Expense Beg. bal Beg. bal 0 0 0 Feb. 29c 150 CJE 2 Feb. 2 650 CJE 2 650 150 End. bal End. bal Rent Expense Utility Expense Beg. bal. Beg. bal 0 Feb. 19a 1,600 CJE 2 Feb. 27 650 CJE 2 1,600 650 End. bal End. bal. Wages Expense Beg. bal 0 0 5,000 CJE 2 Feb. 16 2,500 Feb. 29a 2,500 c. Prepare the financial statements at the end of February. (Balance Sheet only, items to be deducted must be indicated with a negative amount.) wWC, Inc. Income Statement For the Month Ended February 29 Revenues Sales Revenue 23.200 Less: Sales Retums and Allowances 3.400 Less: Sales Discounts 100 19.700 Net Sales Cost of Goods Sold 9,830 9.870 Gross Profit Expenses Bad Debt Expense 802 Insurance Expense 650 Interest Expense 150 Rent Expense 1,600 Utility Expense 650 Wages Expense 5,000 Total Expenses 8,852 Interest Revenue 15 1,033 Net Income WWC, Inc. Statement of Retained Earnings For the Month Ended February 29 Retained Earnings, Beginning of Period 4,920 1,033 Add: Net Income 900 Less: Dividends 5,053 Retained Earnings, End of Period WWw, Inc. Balance Sheet At February 29 Liabilities Assets Current Assets Current Liabilities $ Cash 9,740 Accounts Payable 650 Accounts Receivable 14,150 Interest Payable 150 Allowance for Doubtful Accounts (1,132) Wages Payable 2,500 Inventory 4,080 Notes Receivable 1,800 Interest Receivable 15 3,300 Total Current Assets 28,653 Total Current Liabilities Notes Payable 15,000 Total liabilities 18,300 Stockholders' Equity Contributed Capital 5,300 Retained Earnings 5,053 Total Stockholders' Equity 10,353 28,653 28,653 Total Assets Total Liabilities and Stockholders' Equity View transaction list View journal entry worksheet No Transaction General Journal Debit Credit Sales Revenue 1 1 23,200 Interest Revenue 15 Sales Discounts 100 3,400 Sales Returns and Allowances Retained Earnings 19,715 2 Retained Earnings 18,682 2 Cost of Goods Sold 9,830 Interest Expense 150 Bad Debt Expense 802 Insurance Expense 650 Rent Expense 1,600 Utility Expense 650 Wages Expense 5,000 Retained Earnings 900 3 3 900 Dividends Declared