Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,700 cash and $33,700 of photography equipment in the company in exchange for common stock. 2 The company paid $2,300 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $900 cash. 20 The company received $3,531 cash in photography fees earned. 31 The company paid $695 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.

1. See the attached excel file for the T-accounts.

2. Total of credit side = Total of debit side = $43,931

Explanation:

1. Post the transactions to the T-accounts.

Note: See the attached excel file for 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.

The trial balance will look as follows:

                                        Pose-for-Pics

                                        Trial balance

                                      For August, 31

Details                                     Debit ($)           Credit ($)    

Cash                                           6,336  

Equipment                               33,700  

Common stock                                                 40,400

Prepaid Insurance                     2,204  

Insurance Expenses                      96  

Office Supplies                            900  

Photography fees                                                3,531

Utilities Expense                          695                            

Total                                         43,931               43,931  

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return