Question

a. Kacy Spade, owner, invested $11.250 cash in the company in exchange for common stock. b. The company purchased office supplies for $326 cash. c. The company purchased $6.221 of office equipment on credit d. The company received $1,327 cash as fees for services provided to a customer. e. The company paid $6.221 cash to settle the payable for the office equipment purchased in transactionc 1. The company billed a customer $2,385 as fees for services provided. g. The company paid $520 cash for the monthly rent. h. The company collected $1,002 cash as partial payment for the account receivable created in transaction 1. The company paid a $800 cash dividend to the owner (sole shareholder). Purchased in transactions sh for the monthly rent services provided 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 is not complete. Complete this question by entering your answers in the tabs below Required 1 Required 2 Post the above journal entries to T-accounts, which serves as the general ledger for this assignment. Cash Accounts Receivable

Answer 1

1) The required journal entries for the given transactions are shown as follows:-

  Journal Entries (Amounts in $)

No	Account Titles and Explanations	Debit	Credit
a)	Cash	11,250
	Common Stock		11,250
	(To record the issue of common stock)
b)	Office Supplies	326
	Cash		326
	(To record the purchase of office supplies)
c)	Office Equipment	6,221
	Accounts Payable		6,221
	(To record the purchase of equipment)
d)	Cash	1,327
	Fees Earned		1,327
	(To record the fees earned)
e)	Accounts Payable	6,221
	Cash		6,221
	(To record the cash paid to creditors)
f)	Accounts Receivable	2,385
	Fees Earned		2,385
	(To record the fees earned on account)
g)	Rent Expense	520
	Cash		520
	(To record the rent expense paid)
h)	Cash	1,002
	Accounts Receivable		1,002
	(To record the cash received)
i)	Dividends	800
	Cash		800
	(To record the dividends paid)

2) Posting of above journal entries to T-Accounts is shown as follows:- (Amounts in $)

Cash					Accounts Receivable
a)	11,250	b)	326		f)	2,385	h)	1,002
d)	1,327	e)	6,221		Balance	1,383
h)	1,002	g)	520
		i)	800
	13,579		7,867
Balance	5,712
Office Supplies					Office Equipment
b)	326				c)	6,221
Balance	326				Balance	6,221
Accounts Payable					Common Stock
e)	6,221	c)	6,221				a)	11,250
Balance	0						Balance	11,250
Dividends					Fees Earned
i)	800						d)	1,327
Balance	800						f)	2,385
							Balance	3,712
Rent Expense
g)	520
Balance	520