Answered

Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Connect with a community of experts ready to provide precise solutions to your questions on our user-friendly Q&A platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $11,000 cash and $47,300 of photography equipment in the company in exchange for common stock. 2 The company paid $3,800 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,090 cash. 20 The company received $2,950 cash in photography fees earned. 31 The company paid $878 cash for August utilities. Prepare general journal entries for the above transactions.

Sagot :

abiolataiwo2015

Answer:

Aug 01

Dr Cash 11,000

Dr Photography equipment 47,300

Cr Common stock 58,300

Aug 02

Dr Prepaid insurance 3,800

Cr Cash 3,800

Aug 05

Dr Office supplies 2,090

Cr Cash 2,090

Aug 20

Dr Cash $2,950

Cr Photography fees earned $2,950

Aug 31

Dr Utilities expense $878

Cr Cash $878

Explanation:

Preparation of the general journal entries

Aug 01

Dr Cash 11,000

Dr Photography equipment 47,300

Cr Common stock 58,300

(47,300+11,000)

Aug 02

Dr Prepaid insurance 3,800

Cr Cash 3,800

Aug 05

Dr Office supplies 2,090

Cr Cash 2,090

Aug 20

Dr Cash $2,950

Cr Photography fees earned $2,950

Aug 31

Dr Utilities expense $878

Cr Cash $878

We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.