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Photography Equipment Insurance

April 16th, 2010 by admin

photography equipment insurance
Does anyone know how to prepare general journal entries for accounting purposes?

I have a list of dates and purchases/credits and need to create a general accounting journal, I don't even know where to start!
Prepare general journal entries for the following transactions of a new business called Pose for Pics.
Aug. 1 Hashim Paris, the owner, invested $7,500 cash and $32,500 of photography equipment in
the business.
Aug 1 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.

Use four columns:
FIRST: Date
SECOND: Journal entry number, account names and entry description
THIRD: Amounts to debit
FOURTH: Amounts to credit

Pose for Pics / Hashim Paris
General Journal
August, 2006

Headings for columns: Date / Description / Debit / Credit

-1-
08/01/06
Pty., Plant & Equipment - Photography Equipment $40,000.00
Equity - Capital $40,000.00
To record purchase of photography equipment s/n 055444464.

-2-
08/01/06
Prepaid Expenses - Insurance premiums $3,000.00
Bank - Bank of Patagonia $3,000.00
To record insurance premiums. Patagonia Insurance, LLC. policy #2344. Receipt #45675

-3-
08/05/06
Prepaid Expenses - Office Supplies $1,400.00
Bank - Bank of Patagonia - $1,400.00
To record office supplies Aug-Sep '06.

-4-
08/20/06
Cash - $2,650.00
Revenue - Photography fees $2,650.00
To record august sales

-5-
08/31/06
Operating Expenses - Utilities $875.00
Bank - Bank of Patagoina $875.00
To record Aug. utilities

NOTE: The first amount is Debit; the second, Credit. Also, I'm assuming office supplies are expected to last after August. Otherwise, the amount must be debited to a cost/expense account.

Guide to Photography : How to Start a Small Business in Photography


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