1-BB Below are the transactions for a new Advertising Agency: a. Joan Miller cas
ID: 2393851 • Letter: 1
Question
1-BB Below are the transactions for a new Advertising Agency: a. Joan Miller cashed in a Bond for $42,000 and invested cash of $40,000 in the Miller Advertising Co. b. Rented space for the month at $850; paid cash. c. Purchased art equipment for $17,500 on account. d. acquired art supplies for $988 cash. f. Paid for insurance for 8 months for $1,600 cash. g. Paid $1,000 on equipment purchased in item C above. h. Received $2,500 for advertising work done. i. Rendered service of $3,000 and agreed to receive payment next month. j. Paid salary of secretary of $1,200 for the month k. Joan withdrew $550 for personal use. I. Estimated that depreciation for the month is $200. m. Supplies used is $75.Explanation / Answer
Journal entries
Salary of secretary
1,200
Accounting titles Debit Credit a. Cash 42,000 To Bond 42,000 (Cash in of bonds) Inv in Miller Advertising co. 40,000 To Cash 40,000 b. Rent 850 To Cash 850 (Rent paid for the month) c. Creditors 17,500 To Art equipment 17,500 (Purchase of art equipment on account) d. Cash 988 To Art supplies 988 (Purchase of art supplies by cash) f. Insurance 1,600 To Cash 1,600 (Payment of insurance for cash) g. Creditors 1,000 To cash 1,000 (Paid creditors of art supplies) h. Cash 2,500 To advertsing 2,500 (Revenue from advertising received) I. Debtors 3,000 To revenue from service 3,000 (Amount receivable for service rendered)Related Questions
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