Question

1 Madison Harris, the owner, invested $7,800 cash and $34,800 of photography equipment in the company in exchange for common stock. 2 The company paid $3,400 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $1,010 cash. 20 The company received $4,631 cash in photography fees earned. 31 The company paid $805 cash for August utilities. Prepare general journal entries for the above transactions.

Answer 1

Answer:

Explanation:

The journal entries are shown below:

1. Cash A/c Dr $7,800

  Photography equipment A/c Dr $34,800

                To Common stock A/c $42,600

(Being common stock is issued for cash and photography equipment )

2. Prepaid insurance A/c Dr $3,400

           To Cash A/c $3,400

(Being prepaid insurance is recorded)

3. Office supplies A/c Dr $1,010

           To Cash A/c $1,010

(Being office supplies are purchased for cash)

4. Cash A/c Dr $4,631

        To Photography fees earned A/c $4,631

(Being cash is received)

5. Utilities A/c Dr $805

        To Cash A/c $805

(Being utilities are paid in cash)