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Miller Design Studio-acct100

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Question;Under the first requirement at the bottom of page 178, you are directed to look at pages 116 and 119 for the adjusting entries to be reversed. These should be pages 112 and 115 respectively.Under the August 8th transaction listing in the middle of page 178, the instructions are confusing and incorrect. They should state: "Completed the series of designs that began on July 31 for which $1,400 cash was received in advance on July 19. The accrued revenues were adjusted on July 31st for the $800 of work that was completed and accepted during July."The July 31, 2011, post-closing trial balance for the Miller Design Studio ison the next page.COMPREHENSIVE Problem: Miller Design StudioChapter Assignments 177178 CHAPTER 4 Completing the Accounting CycleDuring August, the studio engaged in these transactions:Aug. 1 Received an additional investment of cash from J. Miller,$20,000.2 Purchased additional office equipment with cash, $4,700.7 Purchased additional office supplies for cash, $540.8 Completed the series of designs that began on July 31 and billedfor the total design services performed, including the accrued revenuesof $800 that had been recognized in an adjusting entry inJuly, $1,400.12 Paid the amount due for the office equipment purchased lastmonth, $3,000.13 Accepted an advance in cash for design work to be done,$2,400.15 Performed design services and received a cash fee, $2,900.16 Received payment on account for design services performed lastmonth, $2,800.19 Made a partial payment on the utilities bill that was received andrecorded at the end of July, $140.20 Performed design services for Rave Department Stores andagreed to accept payment next month, $3,200.21 Performed design services for cash, $1,160.22 Received and paid the utilities bill for August, $900.23 Paid the assistant for four weeks? wages, $4,800.26 Paid the rent for September in advance, $1,600.30 Paid cash to J. Miller as a withdrawal for personal expenses,$2,800.Required1. Record entries in journal form and post to the ledger accounts the optionalreversing entries on August 1 for Wages Payable and Accounts Receivable(see adjustment for unrecorded wages on page 116 and adjustment for designrevenue on page 119). (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 the Trial Balance columns of a work sheet.Miller Design StudioPost-Closing Trial BalanceJuly 31, 2011Cash $22,480Accounts Receivable 5,000Offi ce Supplies 3,660Prepaid Rent 1,600Offi ce Equipment 16,320Accumulated Depreciation?Offi ce Equipment $ 300Accounts Payable 6,280Unearned Design Revenue 600Wages Payable 720J. Miller, Capital 41,160$49,060 $49,0605. Prepare adjusting entries and complete the work sheet using the informationbelow.a. One month?s prepaid rent has expired, $1,600.b. An inventory of supplies reveals $2,020 still on hand on August 31.c. Depreciation on equipment for August is calculated to be $300.d. Services performed for which payment had been received in advancetotaled $1,300.e. Services performed that will not be billed until September totaled $580.f. Wages accrued by the end of August, $720.6. From the work sheet, prepare an income statement, a statement of owner?sequity, and a balance sheet for August 31, 2011.7. Record the adjusting entries on August 31, 2011, in journal form, and postthem to the ledger accounts.8. Record the closing entries on August 31, 2011, in journal form, and postthem to the ledger accounts.9. Prepare a post-closing trial balance at August 31, 2011.Chapter Assignments 179

 

Paper#43585 | Written in 18-Jul-2015

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