Aug. 1 Madison Harris, the owner, invested $10,250 cash and $44,075 of photography equipment in the company. 2 The company paid $3,900 cash for an insurance policy covering the next 24 months.
5 The company purchased office supplies for $1,948 cash.
20 The company received $3,050 cash in photography fees earned.
31 The company paid $866 cash for August utilities.
Prepare general journal entries for the above transactions.

Answer and Explanation:

The journal entries are shown below:

(i) On August 1,

Cash A/c Dr. $10,250

photography equipment A/c Dr. $44,075  

              To common stock   $54,325

(Being the issuance of common stock for cash and photography equipment is recorded)

(ii) On August 2,

Prepaid insurance A/c Dr. $3,900

           To cash $3,900

(Being the cash paid in advance for insurance is recorded)

(iii) On August 5,

Office supplies A/c Dr. $1,948

           To cash                       $1,948

(Being the cash paid for office supplies is recorded)

(iv) On August 20,

Cash A/c Dr. $3,050

     To photography fees earned $3,050

(Being the photography fees earned is recorded)

(v) On August 31,

Utilities A/c Dr. $866

      To cash A/c    $866

(Being the cash paid for utilities)

answer; ///i believe the correct two answer are (1) paid in capital; and (2) earned   capital; good luck