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-   -   Show me how to preparing general journal entries? (https://www.askmehelpdesk.com/showthread.php?t=338132)

  • Apr 5, 2009, 11:27 AM
    beandip24
    Show me how to preparing general journal entries?
    Preparing general journal
    Entries

    Prepare general journal entries for the following transactions of a new business called Pose for Pics.
    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.

    I got to put this as a general journal entries. Help please
  • Apr 5, 2009, 11:46 AM
    helemuo
    Journal Entries DR CR
    Aug1 Cash Ledger 7,500
    Photographic Equip. 32,000
    Owner Equity 39,500

    Aug1 Insurance Expense 3,000
    Cash Account 3,000
    Aug5 Office Supplies 1,400
    Cash 1,400
    Aug20 Cash 2,650
    Fees(or sales a/c) 2,650
    Aug30 Utilities Expense 875
    Cash 875

    Note: explanation has been omitted
  • Apr 5, 2009, 02:37 PM
    pready

    Aug 1 first entry your amounts are off for your Eqpt account and OE account.
    Second entry:
    Debit Prepaid Insurance for the amount
    Credit Cash for the amount.

    Aug 20.
    Debit Cash for the amount received.
    Credit Photography Fees Earned.

    The other entries look correct.

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