Question

The transactions of Spade Company appear below

 a. Kacy Spade, owner, Invested $16,000 cash in the company in exchange for common stock

 b. The company purchased office supplies for $464 cash

 c. The company purchased $8848 of office equipment on credit

 d. The company received $1,888 cash as tees 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 pald $530 cash for the monthly rent

 h. The company collected $1,425 cash as partial payment for the account recevable created in transaction 

 i. The company paid St000 cash in dvidends 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: Otfice 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 Taccounts, which serve as the general ledger for this assignment

Answer 1

Solution 1:

Journal Entries - Spade Company
Event	Particulars	Debit	Credit
a	Cash Dr	$16,000.00
	To Common Stock		$16,000.00
	(To record issue of common stock)
b	Office Supplies Dr	$464.00
	To Cash		$464.00
	(To record purchase of office supplies)
c	Office equipment Dr	$8,848.00
	To Accounts payable		$8,848.00
	(To record purchase of equipment)
d	Cash Dr	$1,888.00
	To Fees earned		$1,888.00
	(To record fees earned)
e	Accounts payable Dr	$8,848.00
	To Cash		$8,848.00
	(To record payment to supplier of equipment)
f	Accounts receivables Dr	$3,392.00
	To Fees earned		$3,392.00
	(To record amount billed to customer for service provided)
g	Rent Expense Dr	$530.00
	To Cash		$530.00
	(To record rent payment)
h	Cash Dr	$1,425.00
	To Accounts Receivables		$1,425.00
	(To record collection from customer)
i	Dividends Dr	$1,000.00
	To Cash		$1,000.00
	(To record dividend payment)

Solution 2:

Cash
Event	Debit	Event	Credit
a	$16,000.00	b	$464.00
d	$1,888.00	e	$8,848.00
h	$1,425.00	g	$530.00
		i	$1,000.00
Ending balance	$8,471.00

Office Supplies
Event	Debit	Event	Credit
b	$464.00
Ending balance	$464.00

Accounts Receivables
Event	Debit	Event	Credit
f	$3,392.00	h	$1,425.00
Ending balance	$1,967.00

Office Equipment
Event	Debit	Event	Credit
c	$8,848.00
Ending balance	$8,848.00

Accounts Payable
Event	Debit	Event	Credit
e	$8,848.00	c	$8,848.00
		Ending balance	$0.00

Common Stock
Event	Debit	Event	Credit
		a	$16,000.00
		Ending balance	$16,000.00

Dividends
Event	Debit	Event	Credit
i	$1,000.00
Ending balance	$1,000.00

Fees Earned
Event	Debit	Event	Credit
		d	$1,888.00
		f	$3,392.00
		Ending balance	$5,280.00

Rent Expense
Event	Debit	Event	Credit
g	$530.00
Ending balance	$530.00