Purpose the closing entries for the general journal

Assignment Help Corporate Finance
Reference no: EM1315796

Closing entries for general journal.

The following are the balances in the accounts for Joan Miller Advertising Agency as of January 31, 2001:

 

Debit

Credit

Cash

$1,720

 

Accounts Receivable

2,800

 

Fees Receivable

200

 

Art Supplies

1,300

 

Office Supplies

600

 

Prepaid Rent

400

 

Prepaid Insurance

440

 

Art Equipment

4,200

 

Accumulated Depreciation, Art eq.

 

$70

Office Equipment

3,000

 

Accumulated Depreciation -Office Eq.

 

50

Accounts Payable

 

3,170

Unearned Art Fees

 

600

Wages Payable

 

180

Joan Miller, Capital

 

10,590

 

  ______

______

Totals

$14,660

14,660

During the month of February, the agency engaged in the following transactions:

Feb. 1  Received an additional investment of cash from Joan Miller, $6,000

Feb. 2  Purchased additional office equipment with cash, $800.

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

Feb. 6  Purchased additional office supplies with cash, $80

Feb. 7 Purchased additional art supplies on credit from Taylor Supply Company, $500.

Feb. 8  Completed the series of advertisements for Marsh Tire Company that began on January 31, and billed Marsh Tire Company for the total services performed, including the accrued revenues that had been recognized in January of $200 (see fees receivable).  The total bill is $800. 

Feb. 9  Paid the secretary for two weeks' wages, $600.

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

Feb. 13  Accepted an advance fee in cash for artwork to be done for another agency, $1,800.

Feb. 14 Purchased a copier from Morgan Equipment for $2,100 paying $250 in cash and agreeing to pay he rest in equal payments over the next five months.

Feb. 15  Performed advertising services and accepted a cash fee, $1,050.

Feb. 16  Received payment on account from Ward Department Stores for services performed last month, $2,800

Feb. 19  Paid amount due for the telephone bill that was received and recorded at the end of January , $70.20. 

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

Feb. 21 Performed art services for a cash fee, $580

Feb. 22 Received and paid the utility bill for February, $110. Paid the secretary for two weeks' wages, $600. 

Feb. 26  Paid the rent for March in advance, $400.

Feb. 27 Received the telephone bill for February, which is to be paid next month, $80.

Feb. 28 Paid out cash to Joan Miller as a withdrawal for personal living expenses, $1,400.

At the end of February, adjustments are made for the following:

1.        One month's prepaid rent has expired.

2.        One month's prepaid insurance has expired, $40.

3.        An inventory of art supplies reveals $720 of supplies are still on hand on February 28th.

4.        An inventory of office supplies reveals $300 in office supplies have been used in February.

5.        Depreciation on the Art equipment for February is calculated to be $90.

6.        Depreciation on the Office equipment for February is calculated to be $100.

7.        Art services performed for which payment has been received in advance total, $1,400

8.        Advertising services performed that will not be billed until March total $340.

9.        Three days' worth of secretarial wages had accrued by the end of February.

Required:

Prepare the closing entries for the general journal or close the revenue and expense columns.

Reference no: EM1315796

Questions Cloud

Forms of business organization : Accounts Basics and cash flow statement related multiple Choice questions and Which of the following is not one of the three forms of business organization?
Questions based on balance sheet data : Multiple Choice questions based on balance sheet data and An accounting time period that is one year in length is called and One of the accounting concepts upon which adjustments for prepayments and accruals.
Differentiable function on the interval : Differentiable function on the interval.
Formulate a bip model in algebraic form : Formulate a BIP model in algebraic form for this problem and Formulate and solve this model on a spreadsheet.
Purpose the closing entries for the general journal : Closing entries for general journal - Purpose the closing entries for the general journal or close the revenue and expense columns.
Prepare the general journal entries : Posting Journal entries into a worksheet - Prepare the general journal entries or enter into a worksheet the adjustments necessary at the end of February
Solve the algebra equation : Solve the algebra equation
Solve the given algebra equation : Solve the given algebraic equation.
Posting journal entries into a worksheet : Posting Journal entries into a worksheet - Prepare the general journal entries or enter into a worksheet the transactions completed in February, 2001

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd