Question

Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $7,100 cash and $34,100 of photography equipment in the company in exchange for common stock. 2 The company paid $2,700 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $940 cash. 20 The company received $3,931 cash in photography fees earned. 31 The company paid $735 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. Complete this question by entering your answers in the tabs below. Required Required 1 2 Post the transactions to the T-accounts. Cash Office Supplies Aug. 1 Balance Balance 0 Prepaid Insurance Photography Equipment Balance 0 Balance 0 Common Stock Photography Fees Earned Balance Balance Utilities Expense Balance Required 1 Required 2 >

Answer 1

1)

Cash					Office Supplies
Aug. 1	$7100	Aug. 2	2700		Aug. 5	940
Aug. 20	3931	Aug. 5	940
		Aug. 31	735
Balance	$6656				Balance	940
Prepaid Insurance					Photography Equipment
Aug. 2	2700				Aug. 1	$34100
Balance	2700				Balance	34100
Common Stock					Photography Fees Earned
		Aug. 1	$41200				Aug. 20	3931
Balance			41200		Balance			3931
Utilities expense
Aug. 31	735
Balance	735

2)

POSE-FOR-PICS
Trial Balance
August 31
	Debit	Credit
Cash	$6656
Office supplies	940
Prepaid insurance	2700
Photography equipment	34100
Common stock		41200
Photography fees earned		3931
Utilities expense	735
Total	$45131	$45131