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| *SoulEyes Photography>>>Photography Equipment |
Accounting Help!!!!!? |
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. Aug. 1 Hashim Paris, the owner, invested $7,500 cash and $32,500 of photography equipment in the business. 1 Paid $3,000 cash for an insurance policy covering the next 24 months. 5 Purchased office supplies for $1,400 cash. 20 Received $2,650 cash in photography fees earned. 31 Paid $875 cash for August utilities Do what it says and post the transactions listed to the proper accounts, then draw up the Trial Balance which is simply a list of all the account balances at closing date and must come to zero - i.e. the sum of the debit balances must equal the sum of the credit balances. The first two transactions on August 1 are debit assets (Cash and Equipment respectively), credit proprietorship (Capital), if that is any help. The other August 1 transaction is a prepayment, so credit bank, debit the asset account Prepayments. They may mean you to then take up one month's value of the $3,000 as the montly expense for August by journal entry - or you can debit one month to the expense account and 23 months to Prepayments - although they don't seem to have given you an Insurance expense account, so perhaps not - I'd ask your teacher that one - "next 24 months" may mean commencing September 1, but why pay a month early? 5 and 31 are expense transactions, debit expense, credit bank and 20 is revenue, credit Fees Earned, debit bank. Source(s): I'm an accountant Aug 1 ----------- Aug. 1 Hashim Paris, the owner, invested $7,500 cash and $32,500 of photography equipment in the business. Dr Cash a/c - $7,500 Cr H. Paris, Capital - $7,500 (Being capital invested) Dr Photography Equipment - $32,500 Cr H. Paris, Capital - $32,500 (Being photography equipment invested) Aug 1 Paid $3,000 cash for an insurance policy covering the next 24 months Dr Prepaid Insurance - $3,000 Cr Cash a/c - $3,000 (Being insurance prepayment for the next 24 months) Aug 5 ---------- Purchased office supplies for $1,400 cash. Dr Office Supplies - $1,400 Cr Cash a/c - $1,400 (Being purchase of office supplies) Aug 20 ------------ Received $2,650 cash in photography fees earned Dr Cash a/c - $2,650 Cr Photography Fees Earned (Being Photography Fees Earned) Aug 31 ---------- Paid $875 cash for August utilities Dr Utilities Expense - $875 Cr Cash a/c - $875 (Being utilities expense for the month of August) ------------------------------... The above are the jounral entries. Afterwhich you just post them to the T-account respectively with Dr on the left and Cr on the right side of the T-account. Accounts are to be reflected in the trial balance as follows: Dr Nature ------------- Cash Office Supplies Prepaid Insurance Photography equipment Utilities expense Cr Nature --------------- H.Paris, Capital Photography Fees Earned The Dr and Cr side of your trial balance should tie. |
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