Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Mad
ID: 2337488 • Letter: F
Question
Following are the transactions of a new company called Pose-for-Pics.
Aug.
1
Madison Harris, the owner, invested $8,250 cash and $35,475 of photography equipment in the company in exchange for common stock.
2
The company paid $3,200 cash for an insurance policy covering the next 24 months.
5
The company purchased office supplies for $1,568 cash.
20
The company received $3,300 cash in photography fees earned.
31
The company paid $870 cash for August utilities.
Prepare general journal entries for the above transactions.
Journal entry worksheet
·Madison Harris, the owner, invested $8,250 cash and $35,475 of photography equipment in the company in exchange for common stock.
1-Madison Harris, the owner, invested $8,250 cash and $35,475 of photography equipment in the company in exchange for common stock.
· 2-The company paid $3,200 cash for an insurance policy covering the next 24 months.
The company paid $3,200 cash for an insurance policy covering the next 24 months.
3-The company purchased office supplies for $1,568 cash.
4-The company received $3,300 cash in photography fees earned.
5-The company paid $870 cash for August utilities.
Aug.
1
Madison Harris, the owner, invested $8,250 cash and $35,475 of photography equipment in the company in exchange for common stock.
2
The company paid $3,200 cash for an insurance policy covering the next 24 months.
5
The company purchased office supplies for $1,568 cash.
20
The company received $3,300 cash in photography fees earned.
31
The company paid $870 cash for August utilities.
General Journal DebitCredit Date Aug 01Explanation / Answer
Date Accounts and Explanation Debit Credit Aug. 1 Cash $8,250 Photography equipment $35,475 Common stock $43,725 ( To record the purchase of common stock for exchange of cash and equipment) Aug. 2 Prepaid insurance $3,200 Cash $3,200 ( to record the payment towards insurance policy) Aug. 5 Office supplies $1,568 Cash $1,568 ( To record the payment towards purchase of office supplies) Aug. 20 Cash $3,300 Photography fees earned $3,300 ( To record the receipt of photgraphic fee earned) Aug. 31 Utilities expense $870 Cash $870 (To record the payment of cash towards utilities)