Prepare all February journal entries and adjusting entries. February Transaction
ID: 2368306 • Letter: P
Question
Prepare all February journal entries and adjusting entries.
February Transactions
02/16 JWC pays the first 2 weeks wages to the employees. The total paid $1,500.
02/17 Paid in full the amount owed for the 02/05 purchase of inventory.
02/18 Wrote off a customer’s account in the amount of $700.
02/19 $2,600 of rent for January and February was paid. Because all of the rent will soon expire, the February portion ofthe payment is charged directly to expense.
02/19 Collected $4,000 on customers’ Accounts Receivable. Of the $4,000, the discount was taken by the customer on $3,000 of the account balances.
02/21 A new inventory supplier that charges a lower price per unit is located. The new supplier’s terms are 2/15,n45; FOB Shipping Point. JWC purchases 50 units on account for $4,400.
02/22 JWC paid Federal Express $100 to have the 50 units of inventory delivered overnight. Delivery occurred on 02/22.
Explanation / Answer
02/16 JWC pays the first 2 weeks wages to the employees. The total paid $1,500.
DR cash 1,500
CR wages payable 1,500
02/17 Paid in full the amount owed for the 02/05 purchase of inventory.
I do not see your 02/05 transaction? Cannot make a journal entry.
02/18 Wrote off a customer’s account in the amount of $700.
DR write-off 700
CR Account Receivable 700
02/19 $2,600 of rent for January and February was paid. Because all of the rent will soon expire, the February portion ofthe payment is charged directly to expense.
DR Rent Expense 2600
CR Pre-paid Rent 2600
02/19 Collected $4,000 on customers’ Accounts Receivable. Of the $4,000, the discount was taken by the customer on $3,000 of the account balances.
DR Account Receivable 3000
CR Sales Discount 1000
02/21 A new inventory supplier that charges a lower price per unit is located. The new supplier’s terms are 2/15,n45; FOB Shipping Point. JWC purchases 50 units on account for $4,400.
DR Merchandise Inventory 4,400
CR Accounts Payable 4,400
02/22 JWC paid Federal Express $100 to have the 50 units of inventory delivered overnight. Delivery occurred on 02/22.
DR Freight-In 100
CR Accounts Payable 100