The following are the balances in the accounts for Joan Miller Advertising Agenc
ID: 2480031 • Letter: T
Question
The following are the balances in the accounts for Joan Miller Advertising Agency as of July 31
During the month of August, the agency engaged in the following transactions:
Aug. 1 Received an additional investment of cash from Joan Miller, $6,300.Aug
2 Purchased additional office equipment with cash, $1200.
Aug. 5 Received art equipment transferred to the business from Joan Miller, $1,400.
Aug. 6 Purchased additional office supplies with cash, $90
Aug. 7 Purchased additional art supplies on credit from Taylor Supply Company, $450.
Aug. 8 Completed the series of advertisements for Marsh Tire Company that began on July, and billed Marsh Tire Company for the total services performed, including the accrued revenues that had been recognized in January of $200 (see accounts receivable). The total bill is $800.
Aug. 9 Paid the secretary for two weeks' wages, $1200.
Aug. 12 Paid the amount due to Morgan Equipment for the office equipment purchased last month $1,500
Aug. 13 Accepted an advance fee in cash for artwork to be done for another agency, $1,600.
Aug. 14 Purchased a copier from Morgan Equipment for $2,100, paying $350 in cash and agreeing to pay the rest in equal payments over the next five months.
Aug. 15 Performed advertising services and accepted a cash fee, $1,450.
Aug. 16 Received payment on account from Ward Department Stores for services performed last month, $2,800.
Aug. 19 Paid amount due for the telephone bill that was received and recorded at the end of July , $140.
Aug. 20 Performed advertising services for Ward Department Stores and agreed to accept payment next month, $3,200.
Aug. 21 Performed art services for a cash fee, $580.
Aug. 22 Received and paid the utility bill for August, $220.
Aug 23. Paid the secretary for two weeks' wages, $1200.
Aug. 26 Paid the rent for Sept in advance, $800.
Aug. 27 Received the telephone bill for February, which is to be paid next month, $160.
Aug. 30 Paid out cash to Joan Miller as a withdrawal for personal living expenses, $1,400.
At the end of Augusr, adjustments are made for the following:
a. One month's prepaid rent has expired.$800
b. One month's prepaid insurance has expired, $80.
c. An inventory of art supplies reveals $600 of supplies are still on hand on aug 31.
d. An inventory of office supplies reveals $410 in office supplies are still on hand on aug 31
e. Depreciation on the Art equipment for aug is calculated to be $100.
f. Depreciation on the Office equipment for aug is calculated to be $100.
g. Art services performed for which payment has been received in advance total $1,300
h. Advertising services performed that will not be billed until spe total $290.
i. Three days' worth of secretarial wages had accrued by the end of aug ( assume a five day week).
Question 9) Preapre a post closing trial balance
Debit Credit Cash 9140 Accounts Receivable 5000 Art Supplies 1300 Office Supplies 600 Prepaid Rent 800 Prepaid Insurance 880 Art Equipment 4200 Accumulated Depreciation--Art eq 70 Office Equipment 3000 Accumulated Depreciation--Office eq 50 Accounts Payable 3240 Unearned Art Fees 600 Wages Payable 360 Joan Miller, Captial credit-20,600Explanation / Answer
1-Aug Cash Dr 6300 John Miller Capital Cr 6300 2-Aug Office equipment Dr 1200 Cash Cr 1200 5-Aug Art equipment Dr 1400 John Miller Capital Cr 1400 6-Aug Office supplies expenses Dr 90 Office supplies Cr 90 7-Aug Art supplies Dr 450 Accounts payable Cr 450 8-Aug Unearned fees Dr 800 Fees earned Cr 800 9-Aug Wages Dr 840 Wages payable Dr 360 Cash Cr 1200 12-Aug Accounts payable Dr 1500 Cash Cr 1500 13-Aug Cash Dr 1600 Unearned fee Cr 1600 14-Aug Office equipment Dr 2100 Cash Cr 350 Installment payable Cr 1750 15-Aug Cash Dr 1450 Advertising fee Cr 1450 16-Aug Cash Dr 2800 Accounts receivable Cr 2800 19-Aug Accounts payable Dr 140 Cash Cr 140 20-Aug Accounts receivable Dr 3200 Advertising fee Cr 3200 21-Aug Cash Dr 580 Art fees Cr 580 22-Aug Utilities expenses Dr 220 Cash Cr 220 23-Aug Wages expenses Dr 1200 Cash Cr 1200 26-Aug Prepaid rent Dr 800 Cash Cr 800 27-Aug Telephone expenses Dr 160 Accounts payable Cr 160 30-Aug John Miller drawing Dr 1400 Cash Cr 1400 Adjustment a) Rent expenses Dr 800 Prepaid rent Cr 800 b) Insurance expenses Dr 80 Prepaid Insurance Cr 80 c) Supplies expenses Dr 700 Art supplies Cr 700 d) Office supplies expense Dr 190 Office supplies Cr 190 e) Depriciation - art equip Dr 100 Accumulated depr - art equi Cr 100 f) Depriciation - office equip Dr 100 Accumulated depr - office equi Cr 100 g) Unearned revenue Dr 600 Accounts receivable Dr 700 Art fee Cr 1300 h) Unbilled revenue Dr 290 Advertising fee Cr 290 i) Wages expense Dr 360 Wages payable Cr 360 Pre closing August closing entries post closing Dr Cr Dr Cr Dr Cr Dr Cr Cash 9140 12730 8010 13860 Accounts Receivable 5000 3900 2800 6100 Art supplies 1300 450 700 1050 Office supplies 600 280 320 Prepaid rent 800 800 800 800 Prepaid Insurance 880 80 800 Art equipment 4200 1200 5400 Accumulated Depriciation - Art equip 70 100 170 office equip 3000 3300 6300 Accumulated Depriciation - oFFICE equip 50 100 150 Accounts payable 3240 1640 610 2210 Unearned Art fees 600 1400 1600 800 Wages payable 360 360 360 360 John Miller Capital 20600 7500 2780 30880 Wages expense 2400 2400 0 Unbilled revenue 290 290 Advertising fee 3490 3490 0 Art fee 4130 4130 0 Depriciation - art equip 100 100 0 Depriciation - office equip 100 100 0 Office supplies expense 280 280 0 Supplies expense 700 700 0 Insurance expense 80 80 0 Rent expense 800 800 0 John Miller Drawing 1400 1400 Telephone expenses 160 160 0 Utilities 220 220 0 Instalment payable 1750 1750 24920 24920 32310 32310 7620 7620 36320 36320 0 0 0
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