Boyd Docker engaged in the following activities in establishing his photography

Question

Boyd Docker engaged in the following activities in establishing his photography studio, SnapShot!:

Please answer the following:
1) In what form (type of record) should Joel record these three activities?

2) Prepare the entries to record the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

1. Opened a bank account in the name of SnapShot! and deposited $7,810 of his own money into this account in exchange for common stock. 2. Purchased photography supplies at a total cost of $940. The business paid $290 in cash, and the balance is on account. 3. Obtained estimates on the cost of photography equipment from three different manufacturers.

Explanation / Answer

1. General Journal

2.

No. Account titles and explanation Debit Credit 1 Cash $7,810 Common stock $7,810 (To record the issue of common stock) 2. Supplies $940 Cash $290 Account payable $650 (To record the purchase of supplies) 3. No entry

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