Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Mad
ID: 2597167 • Letter: F
Question
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $14,250 cash and $61,275 of photography equipment in the company in exchange for common stock. 2 The company paid $2,600 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,708 cash. 20 The company received $2,350 cash in photography fees earned. 31 The company paid $873 cash for August utilities. Prepare general journal entries for the above transactions.
Explanation / Answer
Date Account Titles & Explanation Debit Credit Aug-01 Cash A/c $ 14,250.00 Photography Equipment $ 61,275.00 To Madison harris capital A/c $ 75,525.00 (being cash and Equipment Brought in exchange of Capital has been recorded) Aug-02 Prepaid Insurance A/c $ 2,600.00 To cash A/c $ 2,600.00 (beig Amount paid for Insurance has been recorded) Aug-05 Office supplies A/c $ 2,708.00 To cash A/c $ 2,708.00 (being Purchase of Office supplies has been recorded) Aug-20 cash A/c $ 2,350.00 To Photography fee earned A/c $ 2,350.00 (being income Earned has been recorded) Aug-31 Utilities Expenses A/c $ 873.00 To cash A/c $ 873.00 (being Amount paid for Utility Expense has been reocorded)