Question

a. Kacy Spade, owner, invested $18,500 cash in the company in exchange for common stock. b. The company purchased office supplies for $537 cash. c. The company purchased $10,231 of office equipment on credit. d. The company received $2,183 cash as fees for services provided to a customer. e. The company paid $10,231 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $3.922 as fees for services provided. g. The company paid $510 cash for the monthly rent. h. The company collected $1,647 cash as partial payment for the account receivable created in transaction f. i. The company paid a $1,000 cash dividend to the owner (sole shareholder).

Answer 1

Trial Balance Debit Credit Kacy Spade Capital $ 18,500 Cash (Note) $ 10,052 Office supplies $ 537 Office equipment $ 10,231 Accounts payable (10,231 - 10,231) $ Fees earned (2,183 + 3,922) $ 6,105 Rent expense $ 510 Accounts receivable (3,922 - 1,647) $ 2,275 Dividend $1,000 Total $ 24,605 $ 24,605

Note: Computation of closing balance of Cash:

Kacy Spade's Capital $ 18,500 Purchase of office supplies $ (537) Fees received for services provided $ 2,183 Payment for office equipment purchased $(10,231) Rent expense $ (510) Partial payment received from account receivable $ 1,647 Dividend paid $ (1,000) Closing balance $ 10,052