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. | ||
| 2 | The company paid $3,600 cash for an insurance policy covering the next 24 months. | |||
| 5 | The company purchased office supplies for $2,090 cash. | |||
| 20 | The company received $3,300 cash in photography fees earned. | |||
| 31 | The company paid $868 cash for August utilities. |
Prepare general journal entries for the above transactions.
Madison Harris, the owner, invested $11,000 cash and $47,300 of photography equipment in the company.
| date | general journal | debit | credit |
| Aug 01 | |||
The company paid $3,600 cash for an insurance policy covering the next 24 months.
| date | general journal | debit | credit |
| Aug 02 | |||
The company purchased office supplies for $2,090 cash.
| date | general journal | debit | credit |
| Aug 05 | |||
The company received $3,300 cash in photography fees earned.
| date | general journal | debit | credit |
| Aug 20 | |||
The company paid $868 cash for August utilities.
| date | general journal | credit | debit |
| Aug 31 | |||
| Date | Generalm Journal | Debit | Credit |
| Aug 1 | Cash | $11000 | |
| Equipment | $47300 | ||
| Capital | $58300 | ||
| (To record investment made by Owner) | |||
| Aug 2 | Prepaid Insurance | $3600 | |
| cash | $3600 | ||
| (To record payment for insurance) | |||
| Aug 5 | Office supplies | $2090 | |
| Cash | $2090 | ||
| (To record purchase of office supplies) | |||
| Aug 20 | Cash | $3300 | |
| Service revenue | $3300 | ||
| (To record Photography fee received) | |||
| Aug 31 | Utilities | $868 | |
| Cash | $868 | ||
| (To record payment for utitlity expense) |
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