Joan miller advertising agency | Accounting homework help

This comprehensive problem involving the Joan Miller Advertising Agency covers all the learning objectives in this chapter and in the chapters on measuring business transactions and measuring business income. To complete the problem, you may sometimes have to refer to this material.

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 Miller Advertising Agency

Post-Closing Trial Balance

July 31, 20xx

Cash                          $ 9,140

Accounts Receivable 5,000

Art Supplies                1,300

Office Supplies          600

Prepaid Rent              800

Prepaid Insurance     880

Art Equipment          4200

Accumulated Depreciation, Art.        70               Office Equipment     3,000

Accumulated Depreciation, Office.   50

Accounts Payable                              3,240

Unearned Art Fees                             600

Wages Payable                                   360

Joan Miller, Capital                         20,600

                                   $24920.        $24920

Aug. 1 Received an additional investment of cash from Joan Miller, $6,300.

2 Purchased additional office equipment with cash, $1,200.

5 Received art equipment transferred to the business from Joan Miller, $1,400.

6 Purchased additional office supplies with cash, $90.

7 Purchased additional art supplies on credit from Taylor Supply Company,


8 Completed the series of advertisements for Marsh Tire Company that began on July 31(see page 103) and billed Marsh Tire Company for the total services performed, including the accrued revenues (fees receivable) that had been recognized in an adjusting entry in July, $800.

9 Paid the secretary for two weeks’ wages, $1,200.

12 Paid the amount due to Morgan Equipment for the office equipment purchased last month, $1,500.

13 Accepted an advance in cash for artwork to be done for another agency,


14 Purchased a copier (office equipment) from Morgan Equipment for $2,100, paying $350 in cash and agreeing to pay the rest in equal payments over the next five months.

15 Performed advertising services and received a cash fee, $1,450.

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.

20 Performed advertising services for Ward Department Stores and agreed to accept payment next month, $3,200.

21 Performed art services for cash, $580.

22 Received and paid the utility bill for August, $220.

23 Paid the secretary for two weeks’ wages, $1,200.

26 Paid the rent for September in advance, $800.

27 Received the telephone bill for August, which is to be paid next month, $160.

30 Paid cash to Joan Miller as a withdrawal for personal expenses, $1,400.



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 (see Adjustment g on page 101 and Adjustment i on page 103)(Begin the general journal on page 5) .

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 Will 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.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more