Question

Exercise 2-7 Preparing general journal entries LO P1 Following are the transactions of a new company called Pose-for-Pics. 2.09 points Aug. 1 Madison Harris, the owner, invested $13,000 cash and $55.900 of photography equipment in the company in exchange for c on stock. 2 The company paid $2,800 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,470 cash. 20 The company received $2,250 cash in photography fees earned. 31 The company paid $877 cash for August utilities. Prepare general journal entries for the above transactions. View transaction list Journal entry worksheet 2 3 4 5 Madison Harris, the owner, invested $13,000 cash and $55,900 of photography equipment in the company in exchange for common stock Not Enter des before credits Jobie Credit Aug 01

Answer 1

Required journal entries for the month of August are below:

Date	General Journal	Debit	Credit
Aug 1	Cash	13000
	Photography equipment	55900
	Common stock		68900
	(for cash & equipment invested in exchange for common stock)
Aug 2	Prepaid insurance	2683
	Insurance expense	117
	Cash		2800
	(for current month's insurance premium expense and prepaid insurance for 24 months)
Aug 5	Office supplies	2470
	Cash		2470
	(for office supplies purchased)
Aug 20	Cash	2250
	Service or fees revenue		2250
	(for photography fees earned)
Aug 31	Utilites expense	877
	Cash		877
	(for utilities expense paid)