Question

Following are the transactions of a new company called Pose-for-Pics.

Aug.		1		Madison Harris, the owner, invested $8,250 cash and $35,475 of photography equipment in the company in exchange for common stock.
		2		The company paid $3,200 cash for an insurance policy covering the next 24 months.
		5		The company purchased office supplies for $1,568 cash.
		20		The company received $3,300 cash in photography fees earned.
		31		The company paid $870 cash for August utilities.

Prepare general journal entries for the above transactions.

Journal entry worksheet

·Madison Harris, the owner, invested $8,250 cash and $35,475 of photography equipment in the company in exchange for common stock.

1-Madison Harris, the owner, invested $8,250 cash and $35,475 of photography equipment in the company in exchange for common stock.

·       2-The company paid $3,200 cash for an insurance policy covering the next 24 months.

The company paid $3,200 cash for an insurance policy covering the next 24 months.

3-The company purchased office supplies for $1,568 cash.

4-The company received $3,300 cash in photography fees earned.

5-The company paid $870 cash for August utilities.

General Journal DebitCredit Date Aug 01

Answer 1

Date	Accounts and Explanation	Debit	Credit
Aug. 1	Cash	$8,250
	Photography equipment	$35,475
	Common stock		$43,725
	( To record the purchase of common stock for exchange of cash and equipment)
Aug. 2	Prepaid insurance	$3,200
	Cash		$3,200
	( to record the payment towards insurance policy)
Aug. 5	Office supplies	$1,568
	Cash		$1,568
	( To record the payment towards purchase of office supplies)
Aug. 20	Cash	$3,300
	Photography fees earned		$3,300
	( To record the receipt of photgraphic fee earned)
Aug. 31	Utilities expense	$870
	Cash		$870
	(To record the payment of cash towards utilities)