Question

1 Madison Harris, the owner, invested $6,800 cash and $33,800 of photography equipment in the company in exchange for common stock. 2 The company paid $2,400 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $910 cash. 20 The company received $3,631 cash in photography fees earned. 31 The company paid $705 cash for August utilities. Prepare an August 31 trial balance for Pose-for-Pics.

Answer 1

Answer:

                                  Trial  Balance

Account                        DEBIT CREDIT  

Cash                             6,416** -

Account Receivable  

Prepaid Insurance            2,400 -

Supplies                                910

Equipment                  33800

Common Stock                   40600*

photography fees                       3631

utilities expense              705                    

TOTAL                              44,231     44,231

Explanation:

*Common stock:

6,800 cash + 33,800 equipment = 40,600 total investment

**to calculate cash we need to do a T account

        CASH

DEBIT          CREDIT    

   6800

                    2400

                       910

   3631

                      705        

10,431          4,015

BAL: 6,416

The rest of the account are just used once so we do't have to do T-accounts to keep track of them