Question

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

1. Madison Harris, the owner, invested $6,500 cash and $33,500 of photography equipment in the company in exchange for common stock.
2. The company paid $2,100 cash for an insurance policy covering the next 24 months.
3. The company purchased office supplies for $880 cash.
4. The company received $3,331 cash in photography fees earned.
5. The company paid $675 cash for August utilities.
B. Prepare an August 31 trial balance for Pose-for-Pics.
1. Debit Credit.
2. Cash.
3. Offices.
4. Prepaid insurance.
5. Photography equipment.
6. Common stock.
7. Photography fees earned.
8. Utilities expense.

Answer 1

The August 31 trial balance is a debit and credit amount of $16,986

Step-by-step explanation:

The journal entries for the following transactions is as follows;

General Journal Debit Credit

1. Cash $6,500

Photography equipment $33,500

Common stock $40,000

2. Prepaid insurance $2,100

Cash $2,100

3. Office supplies $880

Cash $880

4. Cash $3,331

Photography fees $3,331

5. Utilities expense $675

Cash $675

August 31 trial balance $16,986 $16,986

The August 31 trial balance is a debit and credit amount of $16,986