Wek 2

Preparing Journal Entries and Trial Balances

Exercises 2-4

Pose for Pics.

Date | What was done on that date? | Paid in cash. | Paid in credit or debit. | Total payment made or due. |

August 1st | Hashim Paris Hashim Paris, (the owner) invested in photography equipment for his business. | $7,500.00 (cash) | $32,500.00 | $40,000.00paid $7,500.00 in cash and still have $32,500.00 to pay. |

August 1st | Insurance policy (covers for 24 month) | $3,000.00 (cash) | | paid |

August 5th | Office supplies | $1,400.00 (cash) | | paid |

August 20th | Photography fees earned | $2,650.00 (cash) | | revived |

August 31st | August utilities | $875.00(cash) | | paid |

| | | | Still owing $40,000.00 |

Exercises 2-5

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.

Problem 2-2A on p. 80.

Shelton Engineering completed the following transactions in the month of June.

a. Shania Shelton, the owner, invested $105,000 cash, office equipment with a value of $6,000, and

$45,000 of drafting equipment to launch the business.

b. Purchased land worth $54,000 for an office by paying $5,400 cash and signing a long-term note

payable for $48,600.

c. Purchased a portable building with $75,000 cash and moved it onto the land acquired in b.

d. Paid $6,000 cash for the premium on an 18-month insurance policy.

e. Completed and delivered a set of plans for a client and collected $5,700 cash.

f. Purchased $22,500 of additional drafting equipment by paying $10,500 cash and signing a longterm

note payable for $12,000.

g. Completed $12,000 of engineering services for a client. This amount is to be received in 30 days.

h. Purchased $2,250 of...