The following are the balances in the accounts for Joan Miller Advertising Agency as of January 31, 2001:
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
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, $180 of which had been accrued in January.
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.
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: