Answer:
Pose-for-Pics
1. T-accounts:
Cash
Date Accounts Titles Debit Credit
Aug. 1 Common stock $6,500
Aug. 2 Prepaid Insurance $2,100
Aug. 5 Office supplies 880
Aug. 20 Photography Fees 3,331
Aug. 31 Utilities 675
Aug. 31 Balance $6,176
Common Stock
Date Accounts Titles Debit Credit
Aug. 1 Cash $6,500
Aug. 1 Photography Equipment 33,500
Aug. 31 Balance $40,000
Photography Equipment
Date Accounts Titles Debit Credit
Aug. 1 Common stock $33,500
Prepaid Insurance
Date Accounts Titles Debit Credit
Aug. 2 Cash $2,100
Office Supplies
Date Accounts Titles Debit Credit
Aug. 4 Cash $880
Photography Fees
Date Accounts Titles Debit Credit
Aug. 20 Cash $3,331
Utilities
Date Accounts Titles Debit Credit
Aug. 31 Cash $675
2. Pose-for-Pics
Trial Balance
As of August 31:
Accounts Titles Debit Credit
Cash $6,176
Common stock $40,000
Equipment 33,500
Prepaid Insurance 2,100
Office supplies 880
Photography Fees 3,331
Utilities expense 675
Totals $43,331 $43,331
Explanation:
T-accounts are the general ledger accounts where the transactions of Pose-for-Pics are summarized. From the T-accounts, the Trial Balance can be prepared to show the list of account balances from the general ledger. The Trial Balance forms the first basis for the preparation of financial statements after adjustments have been made for accruals, prepayments, deferred revenue, and depreciation expenses. The Trial Balance may also show that the accounts have been correctly posted with corresponding debit and credit entries.
