Question

real entries to record the following August 2020 transactions of a new business called for the Low led For the Love of Pixels Prepare journal entries to Au pentent with a fair value of $42.000 Joseph Eagle, the owner, invested $20.000 cash and photography equipment with a fait 1 Rented a studio, paying $12,000 for the next three months in advance. S Purchased office supplies for $1,800 cash. 20 Received $9.200 in photography revenue. 31 Paid $1.400 for August utilities. Set up the following accounts (use the balance column format): Cash (101: Office Supplies (124) Prepaid Rent (131 Photogas Equipment (167): Joseph Eagle, Capital (301) Photography Revenue (401) and Utilities Expense (690). Then using your journalen from Exercise 2-15. post to the seneral ledger (balance column format). Finally prepare the August 31, 2020, trial balance

Answer 1

Journal

Date	Account Titles	Debit	Credit
Aug-01	Cash	$      20,000
	Equipment	$      42,000
	Joseph Eagle, Capital		$      62,000
	(Invested cash and equipment in business)
Aug-01	Prepaid Rent	$      12,000
	Cash		$      12,000
	(Paid rent for 3 months in advance)
Aug-05	Office Supplies	$         1,800
	Cash		$        1,800
	(Purchase supplies for cash)
Aug-20	Cash	$         9,200
	Photography Revenue		$        9,200
	(Received photography revenue)
Aug-31	Utilities Expense	$         1,400
	Cash		$        1,400
	(Paid for utilities)

Cash
Date	Explanation	Debit	Credit	Balance
Aug-01	Joseph Eagle, Capital (Investment)	$      20,000		$      20,000
Aug-01	Paid rent in advance		$      12,000	$        8,000
Aug-05	Paid for office Supplies		$        1,800	$        6,200
Aug-20	Collected for photography revenue	$         9,200		$      15,400
Aug-31	Paid for utilities		$        1,400	$      14,000
Photograhy Equipment
Date	Explanation	Debit	Credit	Balance
Aug-01	Joseph Eagle, Capital (Investment)	$      42,000		$      42,000
Office Supplies
Date	Explanation	Debit	Credit	Balance
Aug-05	Paid for office Supplies	$         1,800		$        1,800
Prepaid Rent
Date	Explanation	Debit	Credit	Balance
Aug-01	Paid rent in advance	$      12,000		$      12,000
Joseph Eagle, Capital
Date	Explanation	Debit	Credit	Balance
Aug-01	Cash		$      20,000	$      20,000
Aug-01	Photography Equipment		$      42,000	$      42,000
Photography Revenue
Date	Explanation	Debit	Credit	Balance
Aug-20	Collected for photography revenue		$        9,200	$        9,200
Prepaid Rent
Date	Explanation	Debit	Credit	Balance
Aug-31	Paid for utilities	$         1,400		$        1,400

Trial Balance
Account Titles	Debit	Credit
Cash	$      14,000
Photography Equipment	$      42,000
Prepaid Rent	$      12,000
Office Supplies	$         1,800
Joseph Eagle, Capital		$      62,000
Photography Revenue		$        9,200
Utilities Expense	$         1,400
Total	$      71,200	$      71,200