The July 31, 2011, post-closing trial balance for the Miller Design Studio is on the next page. COMPREHENSIVE Problem: Miller Design Studio Chapter Assignments 177 178 CHAPTER 4 Completing the Accounting Cycle During 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 billed for the total design services performed, including the accrued revenues of $800 that had been recognized in an adjusting entry in July, $1,400. 12 Paid the amount due for the office equipment purchased last month, $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 last month, $2,800. 19 Made a partial payment on the utilities bill that was received and recorded at the end of July, $140. 20 Performed design services for Rave Department Stores and agreed 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. Required 1. Record entries in journal form and post to the ledger accounts the optional reversing entries on August 1 for Wages Payable and Accounts Receivable (see adjustment for unrecorded wages on page 116 and adjustment for design revenue 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 Studio Post-Closing Trial Balance July 31, 2011 Cash $22,480 Accounts Receivable 5,000 Offi ce Supplies 3,660 Prepaid Rent 1,600 Offi ce Equipment 16,320 Accumulated Depreciation?Offi ce Equipment $ 300 Accounts Payable 6,280 Unearned Design Revenue 600 Wages Payable 720 J. Miller, Capital 41,160 $49,060 $49,060 Copyright 2010 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. 5. Prepare adjusting entries and complete the work sheet using the information below. 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 advance totaled $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?s equity, and a balance sheet for August 31, 2011. 7. Record the adjusting entries on August 31, 2011, in journal form, and post them to the ledger accounts. 8. Record the closing entries on August 31, 2011, in journal form, and post them to the ledger accounts. 9. Prepare a post-closing trial balance at August 31, 2011. Chapter Assignments 179

Chart of Accounts Cash Accounts Receivable Office Supplies Prepaid Rent Office Equipment Accumulated Depreciation - Office Equipment Accounts Payable Unearned Design Revenue Wages Payable J. Miller, Capital J. Miller, Withdrawals Income Summary Design Revenue Wages Expense Utilities Expense Rent Expense Office Supplies Expense Depreciation Expense - Office Equipment 111 113 115 117 145 146 212 213 214 311 312 313 411 511 512 514 517 519 Dropdown List for Transaction Descriptions Billed for design services performed Cash investment by J. Miller For design services performed for Rave Department Stores Paid amount due for utility bill received and recorded in July Paid assistant four weeks' wages Paid for office equipment purchased in July Paid September rent in advance Paid utilities bill for August Purchased office equipment Purchased office supplies Received advance fee for design services Received cash payment for design services Received payment for design services performed last month To accrue unrecorded wages To close the expense accounts into the income summary account To close the income summary account To close the revenue account into the income summary account To close the withdrawals account To recognize expiration of one month's rent To recognize office supplies used during the month To recognize performance of services paid for in advance To record depreciation of equipment for the month To record revenue earned, but not billed until September To reverse the adjusting entry for accrued design revenue earned To reverse the adjusting entry for accrued wages Withdrawal of cash by J. Miller Dropdown List for Statement of Owner's Equity J. Miller, Capital, August 1, 2011 J. Miller, Capital, August 31, 2011 Less Withdrawals Net Income (Loss) Plus Investment by Owner Subtotal Dropdown List for Work Sheet Adjustments (a) (b) (c) (d) (e) (f) Dropdown List for Ledger Items Adjusting Closing Reversing Dropdown List for Ledger Post Ref J1 J2 J3 J4 J5 J6 J7 J8 J9 J10 h Name: Course: Date: Charli K Rodgers Acct 100 Chapter 4, Comprehensive Problem 1. Record the optional reversing entry on August 1 for Wages Payable (see adjustment for unrecorded wages on page 112). Date 2011 Aug 01 General Journal Description Post Ref 111 Page 5 Credit Debit * 20,000 1. Record the optional reversing entry on August 1 for Accounts Receivable (see adjustment for design revenue on page 115). Aug 01 4,700 To reverse the adjusting entry for accrued wages To reverse the adjusting entry for accrued design revenue earned Choose answers from dropdown list. Choose answers from dropdown list. Enter amounts as positive whole numbers. Chapter 4, Comprehensive Problem 2. Record the transactions for August in journal form. Note that, for the August 8 transaction, the instructions 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 wa completed and accepted during July." Date 2011 Aug 01 General Journal Description Post Ref Page 6 Credit Debit Aug 02 Aug 07 Aug 08 Aug 12 Aug 13 Aug 15 Aug 16 Aug 19 Aug 20 Aug 21 Aug 22 Aug 23 Aug 26 Aug 30 Cash investment by J. Miller Purchased office equipment Purchased office supplies Billed for design services performed Paid for office equipment purchased in July Received advance fee for design services Received cash payment for design services Received payment for design services performed last month Paid amount due for utility bill received and recorded in July For design services performed for Rave Department Stores Received cash payment for design services Paid utilities bill for August Paid assistant four weeks' wages Paid September rent in advance Withdrawal of cash by J. Miller Choose answers from dropdown list. Choose answers from dropdown list. Enter amounts as positive whole numbers. Enter amounts as positive whole numbers. Enter amounts as positive whole numbers. Enter amounts as positive whole numbers. Enter amounts as positive whole numbers. Enter amounts as positive whole numbers. Chapter 4, Comprehensive Problem 1, 3, 7 & 8. Post the reversing journal entries, August journal entries, adjusting journal entries, and closing journal entries to the ledger accounts. General Ledger Cash Account No. 111 Balance Date 2011 Jul 31 Aug 01 Aug 02 Aug 07 Aug 12 Aug 13 Aug 15 Aug 16 Aug 19 Aug 21 Aug 22 Aug 23 Aug 26 Aug 30 Item Post Ref Debit Credit J4 Debit 2,800 Accounts Receivable Date 2011 Jul 31 Aug 01 Aug 16 Aug 20 Aug 31 Account No. 113 Balance Item Post Ref Debit J4 Credit 400 Debit Credit 5,000 Office Supplies Date 2011 Jul 31 Aug 07 Aug 31 Credit 22,480 Account No. 115 Balance Item Post Ref Beginning Balance Debit Credit Debit Credit 3,660 Prepaid Rent Account No. 117 Balance Date 2011 Jul 31 Aug 26 Aug 31 Item Post Ref Debit Credit J4 Debit 1,600 Office Equipment Date 2011 Jul 31 Aug 02 Account No. 145 Balance Item Post Ref Debit J4 Credit Debit 16,320 Credit 16,320 Accumulated Depreciation Office Equipment Date 2011 Jul 31 Aug 31 Credit 1,600 Account No. 146 Balance Item Post Ref Debit Credit J4 Debit Credit 300 300 . Accounts Payable Date 2011 Jul 31 Aug 12 Aug 19 Account No. 212 Balance Item Post Ref Beginning Balance Debit Credit Debit 6,280 Unearned Design Revenue Date 2011 Jul 31 Aug 08 Aug 13 Aug 31 Account No. 213 Balance Item Post Ref Debit J4 Debit 600 Account No. 214 Balance Item Post Ref Debit Credit J4 Debit 720 Account No. 311 Balance Item Post Ref Beginning Balance Debit Credit Debit 41,160 Account No. 312 Balance Item Post Ref Debit Credit Debit Account No. 313 Balance Item Post Ref Debit Credit Debit Account No. 411 Balance Item Post Ref Debit Credit Debit Item Post Ref Debit Credit Debit Account No. 512 Balance Item Post Ref Debit Credit Debit Account No. 514 Balance Item Post Ref Debit Credit Debit Credit Account No. 517 Balance Item Post Ref Debit Credit Debit Credit Depreciation Expense Office Equipment Date 2011 Aug 31 Aug 31 Credit Office Suplies Expense Date 2011 Aug 31 Aug 31 Credit Rent Expense Date 2011 Aug 31 Aug 31 Account No. 511 Balance Utilities Expense Date 2011 Aug 22 Aug 31 Credit Wages Expense Date 2011 Aug 01 Aug 23 Aug 31 Aug 31 Credit Design Revenue Date 2011 Aug 01 Aug 08 Aug 15 Aug 20 Aug 21 Aug 31 Aug 31 Aug 31 Credit Income Summary Date 2011 Aug 31 Aug 31 Aug 31 Credit J. Miller, Withdrawals Date 2011 Aug 30 Aug 31 Credit 720 J. Miller, Capital Date 2011 Jul 31 Aug 01 Aug 31 Aug 31 Credit 800 Credit Wages Payable Date 2011 Jul 31 Aug 01 Aug 31 Credit Account No. 519 Balance Item Post Ref Debit Credit Debit Credit Chapter 4, Comprehensive Problem 4 & 5. Prepare the work sheet. Miller Design Studio Work Sheet For the Month Ended August 31, 2011 Account Name Cash Accounts Receivable Office Supplies Prepaid Rent Office Equipment Accumulated Depreciation Office Equipment Accounts Payable Unearned Design Revenue J. Miller, Capital J. Miller, Withdrawals Design Revenue Wages Expense Utilities Expense Rent Expense Depreciation Expense Office Equipment Wages Payable Office Supplies Expense Net Loss Debit Trial Balance Credit Debit Adjustments Credit Debit Adjusted Trial Balance Credit Debit Debit Income Statement Credit Balance Sheet Credit Chapter 4, Comprehensive Problem 6. From the work sheet, prepare the income statement. Miller Design Studio Income Statement For the Month Ended August 31, 2011 Revenues Expenses Total expenses Net Income (Loss) Chapter 4, Comprehensive Problem 6. From the general ledger, work sheet, and income statement, prepare the statement of owner's equity. Miller Design Studio Statement of Owner's Equity For the Month Ended August 31, 2011 Choose answers from dropdown list, and Enter all amounts as positive be sure to order items in format shown in whole numbers. Chapter 3 Exhibit. Chapter 4, Comprehensive Problem 6. From the work sheet and statement of owner's equity, prepare the balance sheet. Miller Design Studio Balance Sheet August 31, 2011 Assets Total assets Liabilities Total liabilities Owner's Equity Total owner's equity Total liabilities and owner's equity Chapter 4, Comprehensive Problem 7. From the work sheet, record adjusting entry (a) in journal form. Date 2011 Aug 31 General Journal Description Post Ref Page 7 Credit Debit 7. From the work sheet, record adjusting entry (b) in journal form. Aug 31 7. From the work sheet, record adjusting entry (c) in journal form. Aug 31 7. From the work sheet, record adjusting entry (d) in journal form. Aug 31 7. From the work sheet, record adjusting entry (e) in journal form. Aug 31 7. From the work sheet, record adjusting entry (f) in journal form. Aug 31 Chapter 4, Comprehensive Problem 8. From the work sheet, record closing entry for revenue in journal form. Date 2011 Aug 31 General Journal Description Post Ref Page 8 Credit Debit 8. From the work sheet, record closing entry for expenses in journal form. Aug 31 8. Record closing entry for the income summary account in journal form. Aug 31 8. From the work sheet, record closing entry for withdrawals in journal form. Aug 31 Chapter 4, Comprehensive Problem 9. From the balance sheet, prepare the postclosing trial balance as of August 31, 2011. Miller Design Studio PostClosing Trial Balance August 31, 2011