Question

The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $16,000 cash in the company. b. The company purchased office supplies for $464 cash. c. The company purchased $8,848 of office equipment on credit. d. The company received $1,888 cash as fees for services provided to a customer. e. The company paid $8,848 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $3,392 as fees for services provided g. The company paid $535 cash for the monthly rent. h. The company collected $1,425 cash as partial payment for the account receivable created in transaction f. I. Kacy Spade withdrew $1,000 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.

Answer 1

Spade Company Journal Enteries Trans. Particulars a Cash a/c To Kacy Spade, Capital (Common stock issued) Dr. Debit in $ Credit in $ 16000 16000 Debit in $ Credit in $ 8466 1967 464 8848 b. 464 Trial Balance For the period ending... Particulars Cash Accounts Receivable Office Supplies Office Equipment Accounts Payable Kacy Spade, Capital Kacy Spade, Withdrawals Service Revenue Rent Expense Totals Office Supplies a/c Dr. To Cash (Office Supplies purchased) 464 16000 1000 C. 8848 5280 Office Equipment a/c Dr. To Accounts Payable (Office Equipment purchased) 8848 535 21280 21280 d. 1888 Cash a/c Dr. To Service Revenue (Services performed for cash) 1888 e. 8848 Accounts Payable a/c Dr. To Cash (Cash paid to creditors) 8848 f. 3392 Accounts Receivable a/c Dr. To Service Revenue (Services performed for cash) 3392 Dr. 535 Rent Expense a/c To Cash (Rent paid) 535 h. 1425 Cash a/c Dr. To Accounts Receivable (Cash received from debtors) 1425 1000 Kacy Spade, Withdrawals a/c Dr. To Cash (Dividends paid) 1000

Cash Kacy Spade, Capital Service Revenue Accounts Receivable Cash 16000 Office Supplies 1888 Accounts Payable 1425 Rent Expense Kacy Spade, Withdrawals Bal. 19313 Kacy Spade, Withdrawals 1000 Bal. 1000 1000 1000 464 8848 535 1000 8466 19313 Service Revenue Accounts Receivable 5280 Cash 5280 Bal. 3392 1888 5280 Accounts Receivable 3392 Cash Service Revenue 1425 Rent Expense Bal. Cash 535 1967 3392 3392 Bal. 535 535 535 Cash Office Supplies 464 Bal. 464 464 464 Accounts Payable Office Equipment 8848 Bal. 8848 8848 8848 Accounts Payable 8848 Office Equipment Cash 8848 8848 8848 16000 Kacy Spade, Capital Cash 16000 16000 Bal. 16000