Question

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

Aug.		1		Madison Harris, the owner, invested $14,000 cash and $60,200 of photography equipment in the company in exchange for common stock.
		2		The company paid $2,400 cash for an insurance policy covering the next 24 months.
		5		The company purchased office supplies for $2,660 cash.
		20		The company received $2,300 cash in photography fees earned.
		31		The company paid $874 cash for August utilities.

Prepare general journal entries for the above transactions.

Answer 1

Date	General Journal	Debit($)	Credit($)
Aug. 1	Cash	14,000
	Photography equipment	60,200
	Common stock		74,200
Aug. 2	Prepaid insurance	2,400
	Cash		2,400
Aug. 5	Office supplies	2,660
	Cash		2,660
Aug. 20	Cash	2,300
	Photography fees earned		2,300
Aug. 31	Utilities expense	874
	Cash		874