Question

The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $14,000 cash in the company. b. The company purchased office supplies for $406 cash. c. The company purchased $7,742 of office equipment on credit. d. The company received $1,652 cash as fees for services provided to a customer e. The company paid $7,742 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $2,968 as fees for services provided. g. The company paid $530 cash for the monthly rent. h. The company collected $1,247 cash as partial payment for the account receivable created in transaction f. i. Kacy Spade withdrew $1,200 cash from the company for personal use. 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; K. Spade, Capital; K. Spade, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside each transaction to identify entries. 2. Post the above journal entries to T-accounts, which serves as the general ledger for this assignment. Complete this question by entering your answers in the tabs below.

Answer 1

1.

S.No.	Particulars	Debit	Credit
a.	Cash	$ 14,000
	K. Spade, Capital		$ 14,000
	(Capital invested in the company)
b.	Office Supplies	$       406
	Cash		$       406
	(Purchase of office supplies)
c.	Office Equipment	$   7,742
	Accounts payable		$   7,742
	(Purchase of office equipment)
d.	Cash	$   1,652
	Fees Earned		$   1,652
	(Cash received or serives provided)
e.	Accounts payable	$   7,742
	Cash		$   7,742
	(Paid towards office equipement purchased)
f.	Accounts receivable	$   2,968
	Fees Earned		$   2,968
	(Billed to a customer towards services provided)
g.	Rent expense	$       530
	Cash		$       530
	(Paid cash towards rent expense)
h.	Cash	$   1,247
	Accounts receivable		$   1,247
	(Cash received from customer)
i.	K. Spade, Withdrawals	$   1,200
	Cash		$   1,200
	(Cash withdrawn by K.Spade)

2).

Cash
K. Spade, Capital	$ 14,000
		Office Supplies	$     406
Fees Earned	$   1,652
		Accounts payable	$ 7,742
		Rent expense	$     530
Accounts receivable	$   1,247
		K. Spade, Withdrawals	$ 1,200
Balance	$   7,021

Accounts Receivable
Fees Earned	$ 2,968
		Cash	$   1,247
Balance	$ 1,721

Office supplies
Cash	$       406
Balance	$       406		0

Office Equipment
Accounts payable	$ 7,742
Balance	$ 7,742

Accounts Payable
		Office Equipment	$ 7,742
Cash	$   7,742
Balance	0		0

K.Spade, Capital
		Cash	$ 14,000
Balance			$ 14,000

K.Spade, Withdrawals
Cash	$   1,200
Balance	$   1,200

Fees Earned
		Cash	$   1,652
		Accounts receivable	$   2,968
Balance			$   4,620

Rent Expense
Cash	$       530
Balance	$       530