Question

Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $8,400 cash and $35,400 of photography equipment in the company in exchange for common stock. 2 The company paid $4,000 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $1,070 cash. 20 The company received $5,231 cash in photography fees earned. 31 The company paid $865 cash for August utilities. Required: 1. Post the transactions to the T-accounts. 2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics. Complete this question by entering your answers in the tabs below.

Answer 1

Requirement 1:

Cash					Office Supplies
Aug.1	$8,400	Aug.2	$4,000		Aug.5	$1,070
Aug.20	$5,231	Aug.5	$1,070
		Aug.31	$865
Balance	$7,696				Balance	$1,070
Prepaid Insurance					Photography Equipment
Aug.2	$4,000				Aug.1	$35,400
Balance	$4,000				Balance	$35,400
Common stock					Photography Fees Earned
		Aug.1	$43,800				Aug.20	$5,231
Balance			$43,800		Balance			$5,231
Utilities Expense
Aug.31	$865
Balance	$865

Requirement 2:

POSE-FOR-PICS
Trial Balance
August 31
	Debit	Credit
Cash	$7,696
Office supplies	$1,070
Prepaid insurance	$4,000
Photography equipment	$35,400
Common stock		$43,800
Photography fees earned		$5,231
Utilities expense	$865
Totals	$49,031	$49,031