Exercise 2-8 Preparing T-accounts (ledger) and a trial balance LO P2 Following a
ID: 2538998 • Letter: E
Question
Exercise 2-8 Preparing T-accounts (ledger) and a trial balance LO P2 Following are the transactions of a new company called Pose-for-Pics Aug. 1 Madison Harris, the owner, invested $6,see cash and $33,509 of photog company paid $2,100 cash for an insurance policy covering the next 24 month:s s The company purchased office supplies for $888 cash. 20 The company received $3,331 cash in photography fees earned. 31 The company paid $675 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Post the transactions to the T-accounts Cash ies BalanceExplanation / Answer
Solution:
Pose-for-Pics
T- Accounts
Cash
Office Supplies
Date
Description
Debit
Credit
Date
Description
Debit
Credit
1-Aug
M Harris, Capital
$6,500
5-Aug
Cash
$880
2-Aug
Prepaid Insurance
$2,100
5-Aug
Office Supplies
$880
31-Aug
Balance
$880
20-Aug
Fees Earned
$3,331
Total
$880
$880
31-Aug
Utilities Expense
$675
31-Aug
Balance
$6,176
$9,831
$9,831
Prepaid Insurance
Photography Equipment
Date
Description
Debit
Credit
Date
Description
Debit
Credit
2-Aug
Cash
$2,100
1-Aug
M Harris, Capital
$33,500
31-Aug
Balance
$2,100
31-Aug
Balance
$33,500
Total
$2,100
$2,100
Total
$33,500
$33,500
M Harris, Capital
Utilities Expense
Date
Description
Debit
Credit
Date
Description
Debit
Credit
1-Aug
Cash
$6,500
31-Aug
Cash
$675
1-Aug
Photography Equipment
$33,500
31-Aug
Balance
$675
31-Aug
Balance
$40,000
Total
$675
$675
Total
$40,000
$40,000
Photography Fees Earned
Date
Description
Debit
Credit
20-Aug
Cash
$3,331
31-Aug
Balance
$3,331
Total
$3,331
$3,331
Pose-for-Pics
Trial Balance
31-Aug
Account Titles
Debit
Credit
Cash
$6,176
Office Supplies
$880
Prepaid Insurance
$2,100
Photography Equipment
$33,500
M Harris, Capital
$40,000
Photography Fees Earned
$3,331
Utilities Expense
$675
Totals
$43,331
$43,331
Cash
Office Supplies
Date
Description
Debit
Credit
Date
Description
Debit
Credit
1-Aug
M Harris, Capital
$6,500
5-Aug
Cash
$880
2-Aug
Prepaid Insurance
$2,100
5-Aug
Office Supplies
$880
31-Aug
Balance
$880
20-Aug
Fees Earned
$3,331
Total
$880
$880
31-Aug
Utilities Expense
$675
31-Aug
Balance
$6,176
$9,831
$9,831
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