The following are the balances in the accounts for Joan Miller Advertising Agency as of January 31, 2001:
Accumulated Depreciation, Art eq.
Accumulated Depreciation –Office Eq.
50 Accounts Payable
Unearned Art Fees
Joan Miller, Capital
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 accounts 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...
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