Answered

Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Get immediate and reliable answers to your questions from a community of experienced professionals on our platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

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

Aug.
1 Madison Harris, the owner, invested $12,500 cash and $53,750 of photography equipment in the company.
2 The company paid $2,500 cash for an insurance policy covering the next 24 months.
5 The company purchased office supplies for $2,375 cash.
20 The company received $3,750 cash in photography fees earned.
31 The company paid $880 cash for August utilities.

Required:
Prepare general journal entries for the above transactions.


Sagot :

Zviko

Answer:

General journal

Pose-for-Pics

Aug 1

Debit : Cash  $12,500

Debit : Equipment $53,750

Credit : Capital $66,250

Aug 2

Debit : Prepaid Insurance $2,500

Credit : Cash $2,500

Aug 5

Debit : Office Supplies  $2,375

Credit : Cash $2,375

Aug 20

Debit : Cash $3,750

Credit : Service Revenue $3,750

Aug 31

Debit : Utilities Expense $880

Credit : Cash $880

Explanation:

The starting point is to identify accounts affected in the transaction, then proceed to prepare the journal entry as shown above.

We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.