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Pose for Pics: journal entries, T-accts and trial balance

Pose for Pics
Preparing journal entries and trial balances
Exercise 2-4

Prepare general journal entries for the following transaction of a new business called Pose for Pics. (please use Excel)

Aug. 1 -Hashim Paris, the owner, invested $7500 cash and $32500 of photography equipment in the business.
Aug. 1 -paid $3000 cash for an insurance policy covering the next 24 months.
aug 5- purchased office supplies for $1400 cash
aug 20- received $2650 cash in photography fees earned.
aug 31- paid $875 cash for August utilities.

Use the information in Exercise 2-4 to prepare an August 31 trial balance for Pose-for-Pics. Open these T-accounts: Cash; Office Supplies; Prepaid Insurance; Photography Equipment; H. Paris, Capital; Photography Fees Earned; and Utilities Expense. Post the general journal entries to these T-accounts (which will serve as the ledger), and prepare a trial balance. (Please use Excel)

Solution Preview

Debit Credit
1-Aug Cash 7,500
Equipment 32,500
Owner's capital 40,000
To record contribution of assets

1-Aug Prepaid Insurance 3,000
Cash 3,000
To record payment ...

Solution Summary

In excel, the journal entries are recorded, the T-accounts set up and posted and the trial balance is prepared from the t-account information.