Question 1
The following transactions of a new company called Pose for Pics. |Aug. 1 |Kasey Madison, the owner, invested $7,500 cash and $32,500 of photography equipment in the company. |2 |The company paid $3,000 cash for an insurance policy covering the next 24 months. |5 |The company purchased office supplies for $1,400 cash. |20|The company received $2,650 cash in photography fees earned. |31|The company paid $875 cash for August utilities. Prepare an August 31 trial balance.
Question 2
Following are the transactions of a new company called Pose-for-pics Aug 1 Madison harris, is the owner, invested $6,500 cash and $33,500 of photography equipment in the company 2 The company paid $2,100 cash for an insurance policycovering the next 24 months. 5 The company purchased office supplies for $880 cash 20 The company received $3,331 cash in photography fees earned. 31 The company paid $675 cash for august utilities. 1. Post the transactions to the T-accounts.
Question 3
Answer to question 1
| Date | Particulars | Dr. $ | Cr. $ |
| Aug. 1 | Cash A/c Dr. | 7,500 | |
| Photography Equipment A/c Dr. | 32,500 | ||
| To Kasey Madison-Capital A/c | 40,000 | ||
| (To record investment of cash and photography equipment) | |||
| Aug. 2 | Prepaid Insurance A/c Dr. | 3,000 | |
| To Cash A/c | 3,000 | ||
| (To record cash payment of insurance policy) | |||
| Aug. 5 | Office Supplies A/c Dr. | 1,400 | |
| To Cash A/c | 1,400 | ||
| (To record cash purchase of office supplies) | |||
| Aug. 20 | Cash A/c Dr. | 2,650 | |
| To Photography Fees Earned A/c | 2,650 | ||
| (To record cash received for photography fees) | |||
| Aug. 31 | Utilities Expense A/c Dr. | 875 | |
| To Cash A/c | 875 | ||
| (To record cash payment for utilities) |
T-Accounts:
Cash A/c:
| Date | Particulars | $ | Date | Particulars | $ | |
| Aug. 1 | To Kasey Madison-Capital A/c | 7,500 | Aug. 2 | By Prepaid Insurance A/c | 3,000 | |
| Aug. 20 | To Photography Fees Earned A/c | 2,650 | Aug. 5 | By Office Supplies A/c | 1,400 | |
| Aug. 30 | By Utilities Expense A/c | 875 | ||||
| Aug. 31 | By Balance C/f | 4,875 | ||||
| Total | 10,150 | Total | 10,150 |
Photography Equipment A/c:
| Date | Particulars | $ | Date | Particulars | $ | |
| Aug. 1 | To Kasey Madison-Capital A/c | 32,500 | Aug. 31 | By Balance C/f | 32,500 | |
| Total | 32,500 | Total | 32,500 |
Kasey Madison-Capital A/c:
| Date | Particulars | $ | Date | Particulars | $ | |
| Aug. 31 | Aug. 1 | By Cash A/c | 7,500 | |||
| Aug. 1 | By Photography Equipment A/c | 32,500 | ||||
| Total | 40,000 | Total | 40,000 |
Prepaid Insurance A/c:
| Date | Particulars | $ | Date | Particulars | $ | |
| Aug. 2 | To Cash A/c | 3,000 | Aug. 31 | By Balance C/f | 3,000 | |
| Total | 3,000 | Total | 3,000 |
Office Supplies A/c:
| Date | Particulars | $ | Date | Particulars | $ | |
| Aug. 5 | To Cash A/c | 1,400 | Aug. 31 | By Balance C/f | 1,400 | |
| Total | 1,400 | Total | 1,400 |
Photography Fees Earned A/c:
| Date | Particulars | $ | Date | Particulars | $ | |
| Aug. 31 | To Balance B/d | 2,650 | Aug. 20 | By Cash A/c | 2,650 | |
| Total | 2,650 | Total | 2,650 |
Utilities Expense A/c:
| Date | Particulars | $ | Date | Particulars | $ | |
| Aug. 31 | To Cash A/c | 875 | Aug. 31 | By Balance C/f | 875 | |
| Total | 875 | Total | 875 |
Trial Balance (August):
| Particulars | Debit Balances $ | Credit Balances $ |
| Photography Equipment | 32,500 | |
| Cash | 4,875 | |
| Prepaid Insurance | 3,000 | |
| Office Supplies | 1,400 | |
| Kasey Madison-Capital | 40,000 | |
| Photography Fees Earned | 2,650 | |
| Utilities Expense | 875 | |
| Total | 42,650 | 42,650 |
Answer to question 2
Cash account
| Dates | Amount | Dates | Amount |
| August 1 | 6500 | ||
| August 2 | 2100 | ||
| August 5 | 880 | ||
| August 20 | 3331 | ||
| August 31 | 675 | ||
| Balance | 6176 | ||
| Total | 9831 | Total | 9831 |
Capital account
| Dates | Amount | Dates | Amount |
| August 1 | 6500 | ||
| August 1 | 33500 | ||
| Balance | 40000 | ||
| Total | 40000 | Total | 40000 |
Equipment account
| Dates | Amount | Dates | Amount |
| August | 33500 | ||
| Balance | 33500 | ||
| Total | 33500 | Total | 33500 |
Prepaid Insurance account
| Dates | Amount | Dates | Amount |
| August 2 | 2100 | ||
| Balance | 2100 | ||
| Total | 2100 | Total | 2100 |
Office supplies account
| August 5 | 880 | ||
| Balance | 880 | ||
| Total | 880 | Total | 880 |
Fees account
| Dates | Amount | Dates | Amount |
| August 20 | 3331 | ||
| Balance | 3331 | ||
| Total | 3331 | Total | 3331 |
Utilities account
| Dates | Amount | Dates | Amount |
| August 31 | 675 | ||
| balance | 675 | ||
| total | 675 | Total | 675 |
Answer to question 3
| Date | account and explanation | debit | credit |
| Aug 1 | Cash | 15000 | |
| Equipment | 64500 | ||
| Common Stock | 79500 | ||
| Aug 2 | Prepaid insurance | 3300 | |
| Cash | 3300 | ||
| Aug 5 | Office supplies | 2850 | |
| Cash | 2850 | ||
| Aug 20 | Cash | 3900 | |
| Fees revenue | 3900 | ||
| Aug 31 | Utilities expense | 866 | |
| Cash | 866 | ||