Answered

Get the information you need quickly and easily with IDNLearn.com. Join our platform to receive prompt and accurate responses from experienced professionals in various fields.

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 :

Abiolataiwo2015idn

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 greatly appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. Find clear and concise answers at IDNLearn.com. Thanks for stopping by, and come back for more dependable solutions.