The July 31, 20xx, post-closing trial balance for the Joan Miller Advertising Ag

Question

The July 31, 20xx, post-closing trial balance for the Joan Miller Advertising Agency appears on the facing page. During August, the agency engaged in these transactions: Joan Mil1er Advertising Agency Post-Closing Trial. Balance July 31, 20xx

                                                                                                  24,920    24,920

Aug 19- Paid amount due for the telephone bill that was recieved and recorded at the end of July $140

Aug 20- Performed advertising services for ward department store and agrred to accept payment next month $3200

Aug 21- Performed art services for cash $580

Aug22- Recieved and paid the utility bill for August $220

Aug23- Paid the secretary for two weeks wages $1200

Aug26- Paid the rent for September in advance, 800

Aug 27- Recieved the telephone bill for August which is to be paid next month, $160

Aug 30- Paid cash to Joan miller as a withdrawal for personal expenses $1400

REQUIRED ~ 1. Record entries in journal form and post to the ledger accounts the optional reversing entries on August 1 for Wages Payable and Accounts Receivable

2. Record the transactions for August in journal form.
3. Post the August transactions to the ledger accounts.
4. Prepare a trial balance in the Trial Balance columns of a work sheet.
5. Prepare adjusting entries and complete the work sheet using the information below:
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 still on hand on August 31.
d. An inventory of office supplies reveals $410 still on hand on August 31.
e. Depreciation on art equipment for August is calculated to be $100.
£ Depredation on office equipment for August is calculated to be $100.
g. Art services performed for which payment had been received in advance totaled $1,300.
h. Advertising services performed that W:i11 not be billed until. September total $290.
i. Three days' wages had accrued by the end of August (assume a five-day week).
6. From the work sheet prepare an income statement, a statement of owner's equity;
and a balance sheet.
7. Record the adjusting entries in journal form, and post them to the ledger accounts.
8. Record the closing entries in journal form, and post them to the ledger accounts.
9. Prepare a post-closing trial balance.

Cash $9140 Accounts recievable 5000 Art supplies 1300 Office supplies 600 Prepaid rent 800 Prepaid insurance 880 Art equipment 4200 Accumlated depreciation, art equipment 70 office equipment 3000 accumlated depreciation, office equipment 50 accounts payable 3240 unearned art fees 600 wages payable 360 Joan miller, capital 20600

Explanation / Answer

1. account payable A/C dr 140

to cash A/C 140

2. account recivable a/c dr 3200

To service performed A/C 3200

3. cash A/C dr 580

to service performed 580

4 utility bills a/c dr 220

to cash a/c 220

5. secretary wages a/c dr 1200

to cash a/c 1200

6. ADVANCE rent a/c dr 800

to cash a/c 800

7 accounts payable a/c dr 160

to telephone bill a/c 160

8. capital a/c dr 1400

to cash a/c 1400

  

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