Question

Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $13,500 cash and $58,050 of photography equipment in the company. 2 The company paid $2,500 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,565 cash. 20 The company received $2,300 cash in photography fees earned. 31 The company paid $867 cash for August utilities. Prepare general journal entries for the above transactions. View transaction list Journal entry worksheet 1 2 3 4 Madison Harris, the owner, invested $13,500 cash and $58,050 of photography equipment in the company. Note: Enter debits before credits. Credit Date Aug 01 General Journal Cash Photography equipment Debit 6,500 33,500 Record entry Clear entry View general journal

Answer 1

Credit Si No 1 Date Aug. 1 General Journal Cash Photography Equipment Common stock (Being owner Investment in company recorded) $ $ Debit 13,500 58,050 S 71,550 S 2,500 2 Prepaid Insurance Cash (Being Insurance paid recorded) S 2,500 2,565 5 Office Supplies Cash (Being amount paid to office supplies recorded) S 2,565 IS 2,300 20 Cash Photography Fees earned (Being photography fees received recorded) $ 2,300 867 31 Utilities expenses Cash Being utilities expenses paid recorded) S 867