Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,700 cash and $33,700 of photography equipment in the company in exchange for common stock. 2 The company paid $2,300 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $900 cash. 20 The company received $3,531 cash in photography fees earned. 31 The company paid $695 cash for August utilities. Required: 1. Post the transactions to the T-accounts. 2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.

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amcool amcool · Answer 1 · 2021-03-23T04:55:00+01:00

Answer:

1. See the attached excel file for the T-accounts.

2. Total of credit side = Total of debit side = $43,931

Explanation:

1. Post the transactions to the T-accounts.

Note: See the attached excel file for the T-accounts.

2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.

The trial balance will look as follows:

Pose-for-Pics

Trial balance

For August, 31

Details Debit ($) Credit ($)

Cash 6,336

Equipment 33,700

Common stock 40,400

Prepaid Insurance 2,204

Insurance Expenses 96

Office Supplies 900

Photography fees 3,531

Utilities Expense 695

Total 43,931 43,931