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Week 2 Assignment:
06/21/2011
Assignment: Preparing Journal Entries and Trial Balances

Exercise 2-4:
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.
Dr Cash: $7,500
Dr Photography Equipment: $32,500
Cr Capital: Hashim Paris: $40,000
To book Capital and Equipment invested by Hashim Paris

1: Paid $3,000 cash for an insurance policy covering the next 24 months.
Dr Prepaid Insurance: $3,000
Cr Cash: $3,000 To book Prepaid insurance paid for using cash

5: Purchased office supplies for $1,400 cash.
Dr Office Supplies Expense: $1,400
Cr Cash: $1,400
To book Office supplies purchased using cash

20: Received $2,650 cash in photography fees earned.
Dr Cash: $2,650
Cr Photography Revenue: $2,650
To book Photography fees received.

31: Paid $875 cash for August utilities.
Dr Utilities Expense: $875
Cr Cash: $875 To book Utilities Paid for using Cash

Exercise 2-5
Preparing T-accounts and a trial balance

Use the information in Exercise 2-4 to 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.

| Pose For Pics | | | Trial Balance | | | 31-Dec-11 | | | DR | CR | Cash | 4875 | | Office Supplies | 1400 | | Prepaid Insurance | 3000 | | Photagraphy Equipment | 32500 | | Capital: Hashim Paris | | 40000 | Photagraphy Revenue | | 2650 | Utilities Expense | 875 | | | | | | 42650 | 42650 |

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