Question

The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $17,500 cash in the company in exchange for common stock. b. The company purchased office supplies for $508 cash. c. The company purchased $9,678 of office equipment on credit. d. The company received $2,065 cash as fees for services provided to a customer. e. The company paid $9,678 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $3,710 as fees for services provided. g. The company paid $525 cash for the monthly rent. h. The company collected $1,558 cash as partial payment for the account receivable created in transaction 1. The company paid a $1,100 cash dividend 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. 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. Required 1 Required 2 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. View transaction list Journal entry worksheet

Answer 1

Date a. Debit($) Credit($) 17,500 17,500 b. 508 508 c. 9,678 9,678 d. 2,065 2,065 e. Journal Entries Accounts Titles and Explainations Cash Common stock (to record cash invested in business in exchange of common stock) Office Supplies Cash (to record office supplies purchased for cash) Office Equipment Accounts payable (to record office equipment purchased on account) Cash Fees Earned (to record cash received as fees for services provided) Accounts payable Cash (to record cash paid to settle the A/P for the office equipment purchased) Accounts Receivable Fees Earned (billed a customer as fees for service provided) Rent expense Cash (to record cash paid for monthly rent) Cash Accounts Receivable (to record partial payment receipt of accounts receivable created) Dividends Cash (to record cash dividends paid) 9,678 9,678 f. 3,710 3,710 g. 525 525 h. 1,558 1,558 i. 1,100 1,100

T-accounts presentation: Dr. (a) (d) (h) Dr. (f) bal. Cr. 1,558 Accounts Receivable 3,710(h) 2,152 Cr. 508 9,678 525 1,100 Dr. le) bal. Cr. 9,678 Accounts Payable 9,678 © 0 Cash 17,500|(b) 2,065(e) 1,558 (g) (i) 9,312 bal. Cr. Dr. Cr. Dr. @ bal. Office Equipment 9,678 9,678 Rent Expense 525 525 bal. Dr. Cr. Office Supplies 508 (b) bal 508 Dr. Dr. Fees Earned (d) (f) bal. Cr. 2,065 3,710 5,775 Common Stock (a) bal. Cr 17,500 17,500 Dr. Cr. Dividends 1,100 1,100 bal.