Preparing T-accounts (ledger) and a trial balance LO P2 Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,500 cash and $33,500 of photography equipment in the company in exchange for common stock.
2 The company paid $2,100 cash for an insurance policy covering the next 24 months.
5 The company purchased office supplies for $880 cash.
20 The company received $3,331 cash in photography fees earned.
31 The company paid $675 cash for August utilities.
Required: 1. Post the transactions to the T-accounts.
2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.

a) T-Accounts:

Date    Description               Debit        Credit

Common Stock

Aug. 1  Cash                                           $6,500

           Photography Equipment           33,500

Aug. 31 Balance                $40,000

Date    Description               Debit        Credit

Cash Account

Aug. 1  Common Stock     $6,500

Aug. 2 Prepaid Insurance                     $2,100

Aug. 5 Office Supplies                            $880

Aug. 20 Fees Earned        $3,331

Aug. 31 Utilities                                       $675

Aug. 31 Balance                                    $6,176

Date    Description               Debit        Credit

Photography Equipment

Aug. 1  Common Stock   $33,500

Date    Description               Debit        Credit

Prepaid Insurance Account

Aug. 2  Cash                       $2,100

Date    Description               Debit        Credit

Office Supplies

Aug. 5  Cash                       $880

Date    Description               Debit        Credit

Fees Revenue

Aug. 20  Cash                                      $3,331

Date    Description               Debit        Credit

Utilities Expense

Aug. 31  Cash                       $675

b) Trial Balance as of August 31:

Accounts                     Debit       Credit

Cash                          $6,176

Photography Equip 33,500

Prepaid Insurance      2,100

Office Supplies             880

Utilities Expense           675

Common Stock                          $40,000

Fees Revenue                                 3,331

Total                       $43,331        $43,331

Explanation:

a) The Common Stock equals the cash and equipment contribution made by Madison Harris, the owner of Pose-for-Pics.

b) Pose-for-Pics' T-accounts are the general ledger accounts of the company.  They record the individual accounts' transactions for the accounting period, usually a month, which are summarized by the preparation of the trial balance as of month-end.

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explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.