Question

1. Kacy Spade, owner, invested $13,000 cash in the company in exchange for common stock.
2. The company purchased office supplies for $377 cash.
3. The company purchased $7,189 of office equipment on credit.
4. The company received $1,534 cash as fees for services provided to a customer.
5. The company paid $7,189 cash to settle the payable for the office equipment purchased in transaction c.
6. The company billed a customer $2,756 as fees for services provided.
7. The company paid $530 cash for the monthly rent.
8. The company collected $1,158 cash as partial payment for the account receivable created in transaction f.
9. The company paid $1,100 cash in dividends 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. Use the letters beside each transaction to identify entries.
2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.

Answer 1

General Journal entries-

Transaction	Journal Entry	Debit (in $)	Credit (in $)
a	Cash	$13000
	Common stock		$13000
b	Office supplies	377
	Cash		377
c	office equipment	7189
	Accounts Payable		7189
d	Cash	1534
	Fees Earned		1534
e	Accounts Payable	7189
	Cash		7189
f	Accounts Receivable	2756
	Fees Earned		2756
g	Rent expenses	530
	Cash		530
h	Cash	1158
	Accounts Receivable		1158
i	Dividends	1100
	Cash		1100

T Accounts-

Cash

Transaction	Debit (in $)	Transaction	Credit (in $)
a	$13,000	b	$377
d	1,534	e	7,189
h	1,158	g	530
		i	$1,100
Balance	$6,496

Common stock

Transaction	Debit (in $)	Transaction	Credit (in $)
		a	13,000
		Balance	$13,000

Office supplies

Transaction	Debit (in $)	Transaction	Credit (in $)
b	377
Balance	$377

office equipment

Transaction	Debit (in $)	Transaction	Credit (in $)
c	7189
Balance	$7189

Accounts Payable

Transaction	Debit (in $)	Transaction	Credit (in $)
e	7189	c	7189
Balance	$0

Fees earned

Transaction	Debit (in $)	Transaction	Credit (in $)
		d	1534
		f	2756
		Balance	$4290

Rent expenses

Transaction	Debit (in $)	Transaction	Credit (in $)
g	530
Balance	$530

Accounts receivable

Transaction	Debit (in $)	Transaction	Credit (in $)
f	2756	h	1158
Balance	$1598

Dividend

Transaction	Debit (in $)	Transaction	Credit (in $)
i	1100
Balance	$1100

Thanks & all the best............