Exercise 27 Preparing general journal entries LO P1 Followin

Exercise 2-7 Preparing general journal entries LO P1 Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $14,750 cash and $63,425 of photography equipment in the company in exchange for common stock. 2 The company paid $3,900 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,803 sh. 20 The company received $3,250 cash in photography fees earne 31 The company paid $874 cash for August utilities. Prepare general journal entries for the above transactions. View transaction list Journal entry worksheet 2 3 4 Madison Harris, the owner, invested $14,750 cash and $63,425 of photography equipment in the company in exchange for common stock Note: Enter debits before credits General Jotrnal Date Debit Aug 01

Solution

Solution:

Journal Entries - Pose for Pics
Date	Particulars	Debit	Credit
1-Aug	Cash Dr	$14,750.00
	Equipment Dr	$63,425.00
	To Common stock		$78,175.00
	(To record investment of cash and equipment in business)
2-Aug	Prepaid insurance Dr	$3,900.00
	To Cash		$3,900.00
	(To record payment of insurance premium for 24 months)
5-Aug	Office supplies	$2,803.00
	To Cash		$2,803.00
	(To record purchase of office supplies)
20-Aug	Cash Dr	$3,250.00
	To Fees Earned		$3,250.00
	(To record fees earned on photography)
31-Aug	Utilities expense Dr	$874.00
	To Cash		$874.00
	(To record payment of utilities expense)