Prepare general journal entries for the following transactions of a new company

Question

Prepare general journal entries for the following transactions of a new company called Pose for Pics. Kasey Madison, the owner, invested $7,500 cash and $32,500 of photography equipment in the company in exchange for common stock. The company paid $3,000 cash for an insurance policy covering the next 24 months. The company purchased office supplies for $1,400 cash. The company received $2,650 cash in photography fees earned. The company paid $875 cash for August utilities. Preparing general journal entries

Explanation / Answer

Aug. 1 Cash DEBIT 7500 Equipment DEBIT 32500 Common Stock CREDIT 40000 Aug. 2 Prepaid insurance DEBIT 3000 Cash CREDIT 3000 Aug. 5 Office supplies DEBIT 1400 Cash CREDIT 1400 Aug. 20 Cash DEBIT 2650 Fees earned CREDIT 2650 Aug. 31 Utilities expense DEBIT 875 Cash CREDIT 875

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