Prepare general journal entries for the following transactions of a new company called Special Pics.
Aug. 1 Madison Harris, the owner, invested $14,250 cash and $61,275 of photography equipment in the company in exchange for its common stock.
2 The company paid $3,300 cash for an insurance policy covering the next 24 months.
5 The company purchased office supplies for $2,707 cash.
20 The company received $3,250 cash in photography fees earned.
31 The company paid $871 cash for August utilities.