Question

The transactions of Spade Company appear below.

1. Kacy Spade, owner, invested $18,500 cash in the company in exchange for common stock.
2. The company purchased office supplies for $537 cash.
3. The company purchased $10,231 of office equipment on credit.
4. The company received $2,183 cash as fees for services provided to a customer.
5. The company paid $10,231 cash to settle the payable for the office equipment purchased in transaction c.
6. The company billed a customer $3,922 as fees for services provided.
7. The company paid $525 cash for the monthly rent.
8. The company collected $1,647 cash as partial payment for the account receivable created in transaction f.
9. The company paid $900 cash in dividends to the owner (sole shareholder).

The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $18,500 cash in the company in exchange for common stock. b. The company purchased office supplies for $537 cash. c. The company purchased $10,231 of office equipment on credit. d. The company received $2,183 cash as fees for services provided to a customer. e. The company paid $10,231 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $3,922 as fees for services provided. g. The company paid $525 cash for the monthly rent. h. The company collected $1,647 cash as partial payment for the account receivable created in transaction f i. The company paid $900 cash in dividends to the owner (sole shareholder) Prepare the Trial Balance. SPADE COMPANY Trial Balance May 31, 2017 Debit Credit

Answer 1

TRIAL BALANCE	Debit	Credit
Kacy Spade Capital Account		$                  18,500
Office Equipment	$                   10,231
Account Payable
Supplies	$                         537
Monthly Rent	$                         525
Account receivable (3922 - 1647)	$                     2,275
Dividend Paid	$                         900
Cash (Note 1)	$                   10,137
Service Revenue (Note 2)		$                    6,105
TOTAL	$                   24,605	$                  24,605
CALCULATION OF THE CLOSING CASH BALANCE
Kacy Spade Capital Account	$                   18,500
Paid for Supplies	$                       -537
Service Account	$                     2,183
Paid for Office equipment	$                 -10,231
Paid for monthly Rent	$                       -525
Cash Collected from Account receivable	$                     1,647
Cash dividend Paid	$                       -900
	$                   10,137
CALCULATION OF THE SERVICE REVENUE
Cash	$                     2,183
Account receivable	$                     3,922
	$                     6,105