Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $7,300 cash and $34,300 of photography equipment in the company. 2 The company paid $2,900 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $960 cash. 20 The company received $4,131 cash in photography fees earned. 31 The company paid $755 cash for August utilities. Required: 1. Post the transactions to the T-accounts. 2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $7,300 cash and $34,300 of photography equipment in the company. 2 The company paid $2,900 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $960 cash. 20 The company received $4,131 cash in photography fees earned. 31 The company paid $755 cash for August utilities. Required: 1. Post the transactions to the T-accounts. 2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please also include the dates
Transcribed Image Text:**Transactions for Pose-for-Pics**
**August 1**
Madison Harris, the owner, invested $7,300 cash and $34,300 of photography equipment in the company.
**August 2**
The company paid $2,900 cash for an insurance policy covering the next 24 months.
**August 5**
The company purchased office supplies for $960 cash.
**August 20**
The company received $4,131 cash in photography fees earned.
**August 31**
The company paid $755 cash for August utilities.
**Required:**
1. Post the transactions to the T-accounts.
2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
**Instructions:** Complete this question by entering your answers in the tabs below.
*Tabs:*
- Required 1
- Required 2
Transcribed Image Text:### Educational Content: Understanding Ledger Accounts
In accounting, a ledger is a book or computer program that sorts and summarizes financial transactions. Here we have an example layout for various ledger accounts.
#### Diagram Explanation:
This image depicts the layout for multiple ledger accounts in a standard accounting ledger. Each section represents a different account. Here is a detailed explanation of each section:
1. **Cash**:
- This ledger account is used to record transactions involving cash.
- The section has three columns for entries on each side: the left for debits and the right for credits.
- At the bottom, the balance is shown, which is initialized to 0.
2. **Office Supplies**:
- This ledger account tracks transactions related to office supplies.
- It has a similar structure with debit and credit columns and a balance at the bottom initialized to 0.
3. **Prepaid Insurance**:
- This account logs transactions for prepaid insurance.
- It contains debit and credit columns to record the transactions.
- The balance is also shown at the bottom, starting at 0.
4. **Photography Equipment**:
- Used to record purchases or sales of photography equipment.
- Debit and credit transactions are recorded in respective columns, with an initial balance of 0.
5. **M. Harris, Capital**:
- This account represents the capital or equity held by M. Harris in the business.
- Similar to other accounts, it has columns for debits and credits and an initial balance of 0.
6. **Photography Fees Earned**:
- This ledger account is for recording fees earned from photography services.
- It also has columns for debit and credit transactions, with an opening balance of 0.
7. **Utilities Expense**:
- This account tracks utility expenses.
- It is structured with debit and credit columns, and starts with a balance of 0.
Each ledger has spaced rows for recording multiple transactions, ensuring that changes to the account are organized clearly. The balance is updated with each entry to reflect the current standing of the account.
Understanding how to use these ledger accounts is crucial for maintaining accurate financial records. Each transaction is categorized, ensuring that the financial statements created later on will be correct and reliable.
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