The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. Thepredetermined overhead rateis 65% of media purchases. On August 1, the four advertising projects had the following accumulated costs:

August 1 Balances
Vault Bank	$270,000
Take Off Airlines	80,000
Sleepy Tired Hotels	210,000
Tastee Beverages	115,000
Total	$675,000

During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts:

Direct Labor	Media Purchases
Vault Bank	$190,000	$710,000
Take Off Airlines	85,000	625,000
Sleepy Tired Hotels	372,000	455,000
Tastee Beverages	421,000	340,000
Total	$1,068,000	$2,130,000

At the end of August, both the Vault Bank and Take Off Airlines campaigns were completed. The costs of completed campaigns are debited to the cost of services account. Required:

Journalize the four summary entries on August 31 to record each of the following for the month. Refer to the Chart of Accounts for exact wording of account titles.

	Direct labor costs
	Media purchases
	Overhead applied
	Completion of Vault Bank and Take Off Airlines campaigns

Chart of Accounts

CHART OF ACCOUNTS

The Fly Company

General Ledger

ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
132	Work in Process
133	Agency Overhead
141	Supplies
142	Prepaid Insurance
143	Prepaid Expenses
191	Office Equipment
192	Accumulated Depreciation-Office Equipment

LIABILITIES
210	Accounts Payable
221	Utilities Payable
231	Notes Payable
236	Interest Payable
241	Lease Payable
251	Salaries Payable
252	Consultant Fees Payable

EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

REVENUE
410	Fees Earned
610	Interest Revenue

EXPENSES
510	Cost of Services
520	Salaries Expense
531	Selling Expenses
532	Insurance Expense
533	Utilities Expense
534	Office Supplies Expense
540	Administrative Expenses
560	Depreciation Expense-Office Equipment
590	Miscellaneous Expense
710	Interest Expense

Journal Journalize the four summary entries on Aug. 31 to record each of the following for the month. Refer to the Chart of Accounts for exact wording of account titles.