Question

The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $10,250 cash in the company in exchange for common stock. b. The company purchased office supplies for $297 cash. c. The company purchased $5,668 of office equipment on credit. d. The company received $1,209 cash as fees for services provided to a customer. e. The company paid $5,668 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $2,173 as fees for services provided. g. The company paid $515 cash for the monthly rent. h. The company collected $913 cash as partial payment for the account receivable created in transaction f. i. The company paid a $800 cash dividend to the owner (sole shareholder). Required: 1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Fees Earned; and Rent Expense. 2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.

Answer 1

No. Transaction General Journal Debit Credit 1. Cash $ t0, 250 Common stock $ to, 250 (To re cord Common stock) b. 0ftice supplies Cash $ 297 $297 (To necord office supplies) Office equipment $5,668 3. C. $5,668 Accounts payable (To record office equipment) 4. Cash $1,209 d. $ 1, 2.09 fees earned (To record fees earned) $ 5,668 Accounts payable e. 5. $ 5,668 Cash ( To necond accounts payable) $2,173 A ccounts receivable 6. fees earned $ 2,173 ( To record fees earned) $ 515 Rent expense g. 7. Cash $515 (To record rent expense) 2.

8. Cash $ 913 A ccounts receivable $913 (To recond cash as partial payment) 9. Divi dends $ 800 Cash $ 800 (To record dividend paid) 2. cash $ 297 $ 10, 2.50 b. $5,668 * 1, 209 $ 515 913 g. í. $ 800 End. Poalance # 5,092 0ffice supplies $ 297 b. $ 297 End. Balance

Accounts Payable 0tice Equipment $5,668 $5, 668 C. $5,648 Balance Balanie $5, 668 Diwdends Common &tock $10,250 a. $ l0,250 Balane Balance Rent Expense fees Earned $ 515 $1,209 d. $2,173 Balance $515 $3,382 Balance Accounts Receivable $ 913 h. $ 2, 173 $1,260 Balance