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

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

Step-by-step 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