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Sunday, 4 November 2012

Following are the transactions of a new company called Pose for Pics.

Following are the transactions of a new company called Pose for Pics.

Aug. 1   Kasey Madison, the owner, invested $6,000 cash and $25,800 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 $1,140 cash.
20   The company received $3,700 cash in photography fees earned.
31   The company paid $874 cash for August utilities.

Prepare general journal entries for the above transactions. (Omit the "$" sign in your response.)

Date General Journal     Debit    Credit
Aug. 1       Cash  
    Photography equipment  
         Common stock    
       
2       Prepaid insurance  
         Cash    
       
5       Office supplies  
         Cash    
       
20       Cash  
         Photography fees earned    
       
31       Utilities expense  
         Cash    

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