Chapter 2
Exercises
Analyzing and Recording
Transactions
Analyzing Transactions
•
In-Class Exercises:
Exercise No.
2-7
Page
79
Journal Entries
Analyzing Transactions
Prepare general journal entries for the following transactions of
a new company called Pose for Pics.
Aug. 1 Kasey Madison, the owner, invested $7,500 cash and
$32,500 of photography equipment in the company.
Aug. 2 Paid $3,000 cash for an insurance policy covering the
next 24 months.
Aug. 5 Purchased office supplies for $1,400 cash.
Aug. 20 Received $2,650 cash in photography fees earned.
Aug. 31 Paid $875 cash for August utilities.
Analyzing Transactions
Analyzing Transactions
•
In-Class Exercises:
Exercise No.
2-8
Page
79 T-Accounts & Trial Balance
Analyzing Transactions
Using the journal entries from Exercise 2-7, post the general
journal entries to the T-accounts (which will serve as the general
ledger).
After posting entries to the T-accounts, prepare a trial balance as
of August 31 for Pose for Pics.
Analyzing Transactions
Completed T-Accounts
Analyzing Transactions