Question

Required information [The following information applies to the questions displayed below.) The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $19,750 cash in the company in exchange for common stock b. The company purchased office supplies for $573 cash. c. The company purchased $10,922 of office equipment on credit. d. The company received $2,331 cash as fees for services provided to a customer. e. The company paid $10,922 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $4,187 as fees for services provided. g. The company paid $520 cash for the monthly rent. h. The company collected $1,759 cash as partial payment for the account receivable created in transaction f. I The company paid $1,000 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. Complete this question by entering your answers in the tabs below. < Prev 44 45 of 63 Next >

Answer 1

Solution:

1.) Journal Entries:

No.of Transactions	General Journal	Debit ($)	Credit ($)
a.	Cash	19,750
	Common stock		19,750
	(To record the invested cash)
b.	Office supplies	573
	Cash		573
	(To record purchased office supplies)
c.	Office equipment	10,922
	Accounts payable		10,922
	(To record purchase office an equipment)
d.	Cash	2,331
	Fees earned		2,331
	(To record earned fees)
e.	Accounts payable	10,922
	Cash		10,922
	(To record paid cash)
F.	Accounts Receivable	4,187
	Fees earned		4,187
	(To record billed as fees)
g.	Rent expenses	520
	Cash		520
	(To record rent expenses)
h.	Cash	1,759
	Accounts receivable		1,759
	(To record the collected cash as partial payment)
i	Dividends	1000
	Cash		1000
	(To record paid in dividends)

2.)

	Cash					Accounts Receivable
a.	$19,750	b.	$573		f.	$4,187	h.	$1,759
d.	$2,331	e.	$10,922
h.	$1,759	g.	$520
		i	$1,000		Balance	$2,428
Balance	$10,825
	Office Supplies					Office Equipment
b.	$573				c.	$10,922
Balance	$573				Balance	$10,922
	Accounts Receivable					Common Stock
e.	$10,922	c.	$10,922				a.	$19,750
Balance			0		Balance			$19,750
	Dividends					Fees Earned
i	$1,000						d.	$2,331
							f.	$4,187
Balance	$1,000				Balance			$6,518
	Rent Expenses
g.	$573
Balance	$573