Question

Following are the transactions of a new company called Pose-for-Pics.

Aug. 1 Madison Harris, the owner, invested $12,000 cash and $51,600 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 $2,280 cash. 20 The company received $2,000 cash in photography fees earned.
31 The company paid $881 cash for August utilities.

Prepare an August 31 trial balance for Pose-for-Pics.

a. Debit Credit
b. Cash
c. Offices
d. Prepaid insurance
e. Photography equipment
f. Common stock
g. Photography fees earned
h. Utilities expense
i. Totals

Answer 1

Answer:

                               Pose-for-Pics

                               Trial Balance

                For the month ended August 31

                                                    DEBIT      CREDIT

b. Cash                                       8,539

c. Offices                               2,280

d. Prepaid insurance               2,300

e. Photography equipment      51,600

f. Common stock                                      63,600

g. Photography fees earned                2,000

h. Utilities expense                  881                  

i. Totals                                     65,600    65,600

Explanation:

In trial balance, all accounts in general either real or nominal is posted here whether on debit or credit side. It shows the balances of debits and credits entries from the transaction of the general journal that the company have made for the period. There are 2 types of trial balance, the unadjusted trial balance and the adjusted trial balance.