Question

1 a. Kacy Spade, owner, invested $11,500 cash in the company in exchange for common stock. b. The company purchased office supplies for $334 cash. c. The company purchased $6,360 of office equipment on credit. d. The company received $1,357 cash as fees for services provided to a customer. e. The company paid $6,360 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $2,438 as fees for services provided. g. The company paid $520 cash for the monthly rent. h. The company collected $1,024 cash as partial payment for the account receivable created in transaction f. 1. The company paid a $900 cash dividend to the owner (sole shareholder). Book Hint Prepare the Trial Balance. Use May 31 as its report date. Ask erences SPADE COMPANY Trial Balance May 31 Debit Credit Totals

Answer 1

SPADE COMPANY
Trial Balance
May-20
	Debit	Credit
Cash	$        5,767	$                -
Accounts Receivable	$        1,414	$                -
Supplies	$           334	$                -
Equipment	$        6,360	$                -
Accounts Payable	$               -	$                -
Common stock	$               -	$       11,500
Service revenue	$               -	$         3,795
Rent Expense	$           520	$                -
Dividend	$           900	$                -
Total	$     15,295	$       15,295

Working:

SPADE COMPANY
Trial Balance
May-20
	Debit	Credit
Cash	11500-334+1357-6360 -520+1024-900	$                -
Accounts Recivable	2438-1024	$                -
Supplies	$           334	$                -
Equipment	$        6,360	$                -
Accounts Payable	$               -	$                -
Common stock	$               -	$       11,500
Service revenue	$               -	1357+2438
Rent Expense	$           520	$                -
Dividend	$           900	$                -
Total	$     15,295	$       15,295