springsmama
Oct 5, 2008, 11:35 AM
The question is:
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.
The transactions are: 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.
As far as I can tell I have assets of $7500, 32500, and 2650.
And expenses of $3000, 1400, 875, and 32500.
Is that right?
I know that Trial Balances require the sum of the credits to equal the sum of the debits- I just don't know how to work it out. Please 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.
The transactions are: 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.
As far as I can tell I have assets of $7500, 32500, and 2650.
And expenses of $3000, 1400, 875, and 32500.
Is that right?
I know that Trial Balances require the sum of the credits to equal the sum of the debits- I just don't know how to work it out. Please help!