Question

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

Aug.		1		Madison Harris, the owner, invested $7,000 cash and $34,000 of photography equipment in the company in exchange for common stock.
		2		The company paid $2,600 cash for an insurance policy covering the next 24 months.
		5		The company purchased office supplies for $930 cash.
		20		The company received $3,831 cash in photography fees earned.
		31		The company paid $725 cash for August utilities.

Required:
1. Post the transactions to the T-accounts.
2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.

Answer 1

1

________________

2

Pose-for-Pics.
Trial Balance
Aug-31,
	Debit $	Credit $
Cash	7026
Office supplies	930
Prepaid insurance	2600
Photography equipment	34000
M. Harris, Capital .		41000
Photography Fees Earned		3831
Utilities Expense	275
	44831	44831