The law firm of Prawitt and Bradford accumulates costs associated with individual cases, using job order costing. The following transactions occurred during August:

DateTransactionAugust 3.Charged 530 hours of professional (lawyer) time to the Shadow Creek Co. breech of contract suit to prepare for the trial, at a rate of $220 per hour.10.Reimbursed travel costs to employees for depositions related to the Shadow Creek case, $27,100.14.Charged 220 hours of professional time for the Shadow Creek trial at a rate of $300 per hour.18.Received invoice from consultants Westerly and Henninger for $63,500 for expert testimony related to the Shadow Creek trial.27.Applied office overhead at a rate of $80 per professional hour charged to the Shadow Creek case.31.Paid administrative and support salaries of $42,600 for the month.31.Used office supplies for the month, $14,400.31.Paid professional salaries of $170,500 for the month.31.Billed Shadow Creek $379,700 for successful defense of the case.

Question Content Area

a. Provide the journal entries for each of these transactions. If an amount box does not require an entry, leave it blank.

DateAccountDebitCreditAugust 3CashCost of ServicesMaterialsSalaries PayableWork in ProcessWork in ProcessWork in ProcessWork in Process Accounts PayableCashCost of ServicesSalaries PayableWork in ProcessSalaries PayableSalaries PayableSalaries PayableAugust 10Accounts ReceivableCashCost of ServicesSalaries PayableWork in ProcessWork in ProcessWork in ProcessWork in Process Accounts PayableAccounts ReceivableCashCost of ServicesWork in ProcessCashCashCashAugust 14Accounts PayableAccounts ReceivableCost of ServicesSalaries PayableWork in ProcessWork in ProcessWork in ProcessWork in Process Accounts PayableCashOffice OverheadSalaries PayableWork in ProcessSalaries PayableSalaries PayableSalaries PayableAugust 18CashAccounts PayableConsultant Fees PayableOffice OverheadWork in ProcessWork in ProcessWork in ProcessWork in Process Accounts PayableCashConsultant Fees PayableMaterialsWork in ProcessConsultant Fees PayableConsultant Fees PayableConsultant Fees PayableAugust 27CashMaterialsOffice OverheadSalaries PayableWork in ProcessWork in ProcessWork in ProcessWork in Process Accounts PayableAccounts ReceivableCashOffice OverheadWork in ProcessOffice OverheadOffice OverheadOffice OverheadAugust 31 Admin. sal.Accounts PayableAccounts ReceivableCashOffice OverheadWork in ProcessOffice OverheadOffice OverheadOffice Overhead Accounts PayableCashCost of ServicesOffice OverheadWork in ProcessCashCashCashAugust 31 SuppliesAccounts PayableAccounts ReceivableOffice OverheadSuppliesWork in ProcessOffice OverheadOffice OverheadOffice Overhead Accounts PayableOffice OverheadSalaries PayableSuppliesWork in ProcessSuppliesSuppliesSuppliesAugust 31 Prof. sal.Accounts PayableAccounts ReceivbleCashSalaries PayableWork in ProcessSalaries PayableSalaries PayableSalaries Payable Accounts PayableAccounts ReceivableCashOffice OverheadSalaries PayableCashCashCashAugust 31 BilledAccounts PayableAccounts ReceivableCashFees EarnedOffice OverheadAccounts ReceivableAccounts ReceivableAccounts Receivable Accounts PayableAccounts ReceivableCashFees EarnedOffice OverheadFees EarnedFees EarnedFees EarnedAugust 31 CostAccounts PayableCashCost of ServicesSalaries PayableWork in ProcessCost of ServicesCost of ServicesCost of Services Accounts PayableCashCost of ServicesSalaries PayableWork in ProcessWork in ProcessWork in ProcessWork in Process

b. How much office overhead is over- or underapplied? Enter your answer as a positive number. fill in the blank

OverappliedUnderappliedOverapplied

c. Determine the gross profit on the Shadow Creek case, assuming that over- or underapplied office overhead is closed monthly to cost of services. fill in the blank