Answer to Question #216311 in Accounting for zuby

Question

a. Wworks starts and completes nine more Web sites and bills clients for $5,400.

b. Wworks purchases supplies worth $150 on account.

c. At the beginning of Feb, Webworks had nineteen keyboards costing $117 each and ten flash drives costing $20 each. Webworks uses periodic FIFO to cost its inventory

d. On account, Wworks purchases seventy keyboards for $118 each and 100 of the new flash drives for $22 each.

e. On Feb 1, Wworks borrows $3,000 from Local Area Bank. The loan plus accrued interest will be repaid at the end of two years. The interest rate is 6 percent.

f. Wworks purchases new computer equipment for use in designing Web sites. The equipment costs $5,500 and was paid for in cash.

g. Wworks pays Nancy $800 for her work during the first three weeks of Feb.

h. Wworks sells 75 keyboards for $11,250 and ninety of the new flash drives for $2,700 cash.

i. Wworks collects $5,200 in accounts receivable.

A. Prepare journal entries

Answer 1

Solution:

The journal entries are as follows: