Question

Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,600 cash and $33,600 of photography equipment in the company. 2 The company paid $2,200 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $890 cash. 20 The company received $3,431 cash in photography fees earned. 31 The company paid $685 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.

Cash
Beg Bal	$                 -
Aug-01	$           6,600	$          2,200	Aug-02
Aug-20	$           3,431	$             890	Aug-05
		$             685	Aug-31
End Bal	$           6,256
Photography Equipment
Beg Bal	$                 -
Aug-01	$         33,600
End Bal	$         33,600
Prepaid Insurance
Beg Bal	$                 -
Aug-02	$           2,200
End Bal	$           2,200
Office Supplies
Beg Bal	$                 -
Aug-05	$              890
End Bal	$              890
Madison Harris, Capital
		$                -	Beg Bal
		$       40,200	Aug-01
		$       40,200	End Bal
Photography Fees Earned
		$                -	Beg Bal
		$          3,431	Aug-20
		$          3,431	End Bal
Utilities Expense
Beg Bal	$                 -
Aug-31	$              685
End Bal	$              685

2.

Account Titles	Debit	Credit
Cash	$           6,256
Prepaid Insurance	$           2,200
Office Supplies	$              890
Photography Equipment	$         33,600
Madison Harris, Capital		$       40,200
Photography Fees Earned		$          3,431
Utilities Expense	$              685
Totals	$        43,631	$       43,631