Exercise 2-7 Preparing general journal entriesP1Prepare general journal entries for the following transactions of a new company called Pose-for-Pics. Use the following(partial) chart of accounts: Cash; Office Supplies; Prepaid Insurance; Photography Equipment; Common Stock; PhotographyFees Earned; and Utilities Expense.Page 83Madison Harris, the owner, invested $6,500 cash and $33,500 of photography equipment in the company in exchange forAug.1common stock.The company paid $2,100 cash for an insurance policy covering the next 24 months.25The company purchased office supplies for $880 cash.The company received $3,331 cash in photography fees earned.The company paid $675 cash for August utilities.2031

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Asked Feb 7, 2020
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Exercise 2-7 Preparing general journal entries
P1
Prepare general journal entries for the following transactions of a new company called Pose-for-Pics. Use the following
(partial) chart of accounts: Cash; Office Supplies; Prepaid Insurance; Photography Equipment; Common Stock; Photography
Fees Earned; and Utilities Expense.
Page 83
Madison Harris, the owner, invested $6,500 cash and $33,500 of photography equipment in the company in exchange for
Aug.
1
common stock.
The company paid $2,100 cash for an insurance policy covering the next 24 months.
2
5
The company purchased office supplies for $880 cash.
The company received $3,331 cash in photography fees earned.
The company paid $675 cash for August utilities.
20
31
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Exercise 2-7 Preparing general journal entries P1 Prepare general journal entries for the following transactions of a new company called Pose-for-Pics. Use the following (partial) chart of accounts: Cash; Office Supplies; Prepaid Insurance; Photography Equipment; Common Stock; Photography Fees Earned; and Utilities Expense. Page 83 Madison Harris, the owner, invested $6,500 cash and $33,500 of photography equipment in the company in exchange for Aug. 1 common stock. The company paid $2,100 cash for an insurance policy covering the next 24 months. 2 5 The company purchased office supplies for $880 cash. The company received $3,331 cash in photography fees earned. The company paid $675 cash for August utilities. 20 31

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Expert Answer

Step 1

Journal entries are a record of financial transaction in which three golden rules of accounting are followed-

1. For real accounts e.g. Cash, building, equipment etc. debit what comes in and credit what goes out of the business

2. For personal accounts-Accounts Payable...

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