Question

Please prepare the journal entries for the transactions below:

Joan Miller Advertising Agency

This comprehensive problem involving the Joan Miller Advertising Agency covers all the learning objectives on measuring business transactions and measuring business income. The July 31, 20xx, post-closing trial balance for the Joan Miller Advertising Agency appears at the bottom of the next page. During August, the agency engaged in these transactions:

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

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, $450.

8    Completed the series of advertisements (total price $800) for Marsh Tire Company that began on July 31.   The July 31 portion was $200.

Paid the secretary for two weeks’ wages, $1,200. The last pay period ended Friday July 26.

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

Accepted an advance in cash for artwork to be done for another agency, $1,600.

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.

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

Received payment on account from Ward Department Stores for services for services performed last month, $2,800.

Paid amount due for the telephone bill that was received and recorded at the end  of July $140.

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

Performed art services for cash, $580.

Received and paid the utility bill August, $220.

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

Paid the rent for September in advance, $800.

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

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

REQUIRED

Record the transactions for August in journal form

Answer 1

Date	Account,Title and Explanation	Debit	Credit
August 1	Cash	$6300
	Stock Holder's equity		$6300
August 1	Office Equipment	$1200
	Cash		$1200
August 5	Equipment	$1400
	Contribution Revenue		$1400
August 6	Office Supplies	$90
	Cash		$90
August 7	Art Supplies	$450
	Accounts Payables-Taylor supply company		$450
August 8	Accounts Receivable	$600
	Revenue($800-$200)		$600
August 9	Wages	$1200
	Cash		$1200
August	Office Equipment	$1500
	Cash		$1500
August	Cash	$1600
	Artwork Agency		$1600
August	Morgan Equipment	$2100
	Cash		$350
	Accounts Payable		$1750
Auguts	Cash	$1450
	Advertising Service		$1450
August	Cash	$2800
	Accounts Receivable		$2800
August	Accounts payable	$140
	Cash		$140
August	Accounts Receivable	$3200
	Advertising Service		$3200
August	Cash	$580
	Art Services		$580
August	Utility Bill	$220
	Cash		$220
August	Wages	$1200
	Cash		$1200
August	Prepaid Rent expense	$800
	cash		$800
August	Telephone Bill	$160
	Accounts Payable		$160
August	Joan Miller Drawings	$1400
	Cash		$1400

Since the date of few transactions were not given, i have just put the month in the date column.