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. 2 The company paid $3,500 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $1,568 cash. 20 The company received $3,400 cash in photography fees earned. 31 The company paid $880 cash for August utilities. Prepare general journal entries for the above transactions.

Answer 1

Step-by-step explanation:

Pose-for-Pics

Aug. 1 Madison Harris, the owner, invested $8,250 cash and $35,475 of photography equipment in the company.

Debit: Cash. $8,250

Debit: Photography equip $35,475

Credit: Capital. $43,725

Being Start up capital by Madison Harris

2 The company paid $3,500 cash for an insurance policy covering the next 24 months.

Debit: Prepaid insurance $3,500

Credit : Cash. B$3,500

Being prepayment for insurance policy

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

Debit: Office supplies. $1,568

Credit: Cash. $1,568

Being cash payment for office supplies

20 The company received $3,400 cash in photography fees earned.

Debit: Cash. $3,400

Credit: Sales/ Revenue. $3,400

Being cash sales earned

31 The company paid $880 cash for August utilities.

Debit: Utilities. $880

Credit: Cash. $880

Being cash payment for office Utilities