Following are the transactions of a new company called Pose for Pics. Aug. 1 Mad
ID: 2482851 • Letter: F
Question
Following are the transactions of a new company called Pose for Pics. Aug. 1 Madison Harris, the owner, invested $6,500 cash and $27,950 of photography equipment in the company. 2 The company paid $2,000 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $1,235 cash. 20 The company received $3,400 cash in photography fees earned. 31 The company paid $883 cash for August utilities. Prepare general journal entries for the above transactions.
1) Madison Harris, the owner, invested $6,500 cash and $27,950 of photography equipment in the company.
2) The company paid $2,000 cash for an insurance policy covering the next 24 months.
3) The company purchased office supplies for $1,235 cash.
4) The company received $3,400 cash in photography fees earned.
5) The company paid $883 cash for August utilities.
Explanation / Answer
Particulars Dr Amt Cr Amt 1) Equipment Dr 27,950.00 Cash Dr 6,500.00 To Madison Capital 34,450.00 2) Prepaid Insurance Dr 2,000.00 To Cash A/C 2,000.00 3) Office Supplies Dr 1,235.00 To Cash 1,235.00 4) Cash A/C Dr 3,400.00 To Revenue 3,400.00 5) Utilities Expense Dr 883.00 To Cash A/C 883.00