Post entries into T accounts.
1) February 1: The firm pays the 2 year insurance premium of $2,400 for fire and liability coverage beginning February 1.
2) February 5: Acquires merchandise costing $1,050,000. Of this amount, $1,455.00 is from suppliers to whom Wings returned defective merchandise during January but for which the firm had not yet received a refund for amounts paid. Wings Corp. acquired the remaining purchases on account.
3) During February: Sells merchandise to customers totaling $1,500,000. Of this amount, $4,500.00 was to customers who had advanced Wings Corp. Cash during January. Wings Corp. makes the remaining sales on account.
4) During February: The cost of goods sold in #3 was $950,000.
5) During February: pays in cash selling and administrative expenses of $235,000.
6) During February: Collects $1,206,000 from customers for sales previously made on account.
7) During February: Pays $710,000 to suppliers of merchandise for purchases previously made on account.
This tutorial provides instructional advice on how to post entries into the T accounts.