Answer:
Part A:
August 1:
Cash $6,500
Photography equipment $$33,500
Madison Harris Capital $40,000
August 2:
Prepaid Insurance $2,100
Cash $2,100
August 5:
Office Supplies $880
Cash $880
August 20:
Cash $3,331
Photography fees earned $3,331
August 31:
Utilities expense $675
Cash $675
Total $46,986 $46,986
Part B:
Amount Debit($) Credit($)
Cash 6,176
Office Supplies 880
Prepaid Insurance 2,100
Photography Equipment 33,500
M.Harris Capital 40,000
Photography Fee earned 3,331
Utilities Expense 675
Total 43,331 43,331
Explanation:
Journal Entries:
It helps the company or firm to put all its transactions ion one sheet as debit and credit to keep track of its financial transactions. At the end total debit is equal to total credit.
Below are journal entries of above Transactions:
Amount Debit Credit
August 1:
Cash $6,500
Photography equipment $$33,500
Madison Harris Capital $40,000
August 2:
Prepaid Insurance $2,100
Cash $2,100
August 5:
Office Supplies $880
Cash $880
August 20:
Cash $3,331
Photography fees earned $3,331
August 31:
Utilities expense $675
Cash $675
Total $46,986 $46,986
Part B:
From Above Entries we can find the cash at the end:
Ending Cash=Total Debit Cash- Total Credit Cash
Ending Cash=(6,500+3,331)-(2,100+880+675)
Ending Cash=$6176
Preparing Trial Balance:
Amount Debit($) Credit($)
Cash 6,176
Office Supplies 880
Prepaid Insurance 2,100
Photography Equipment 33,500
M.Harris Capital 40,000
Photography Fee earned 3,331
Utilities Expense 675
Total 43,331 43,331
