Question

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

Aug. 1 Madison Harris, the owner, invested $5,500 cash and $23,650 of photography equipment in the company in exchange for common stock.
2 The company paid $3,800 cash for an insurance policy covering the next 24 months.
5 The company purchased office supplies for $1,045 cash.
20 The company received $2,150 cash in photography fees earned.
31 The company paid $884 cash for August utilities.

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

Answer 1

Answer and Explanation:

The preparation of the August 31 trial balance for Pose for pics is presented below:

Particulars                           Debit                       Credit

Cash

($5,500 - $3,800 - $1050

+ $2,150 - $884)                 $1,921

Office Supplies                    $1,045

Prepaid Insurance              $3,800

Photography Equipment    $23,650  

Common Stock

($5,500 + $23,650)                                            $29,150

Photography Fees Earned                                $2,150

Utilities Expense               $884

Totals                                 $31,300                   $31,300