Question

Exercise 2-9 Recording effects of transactions in T-accounts LO A1 The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $19,500 cash in the company in exchange for common stock. b. The company purchased office supplies for $566 cash. c. The company purchased $10,784 of office equipment on credit. d. The company received $2,301 cash as fees for services provided to a customer. e. The company paid $10,784 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $4,134 as fees for services provided. g. The company paid $530 cash for the monthly rent. h. The company collected $1,736 cash as partial payment for the account receivable created in transaction f. i. The company paid $1,200 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.

Answer 1

No. Transactions General Journal Credit Cash Debit $19,500 Common stock Yo reord cash invested) $ 19,500 d. bi $566 office supplies Cash ( (Yo record office supplies purchased) $566 3 office equipment $10,984 Accounts Payable Ho second office equipment purchased) $ 10,784 $2,301 cash fees earned (to seard cash received for fee) $ 2,30) S. Accounts Payable $ 10,784 Cash (To second cash paid ) $10,784 $ 4, 134 Acounts receivable fees earned (to second fees for services provided) $ 4,134

7 g Rent expense $530 Cash To record cash paid for rent) $530 $1,736 Cash Accounts Receivable to record cash collected) $1,736 $1,200 Dividends cash To recond cash paid for dividends) $1,200 Cash $ 19,500 b. $2,301 $1,736 g Accounts Receivable $4,134 h $1,736 e. $566 $ 10,784 $ 530 $ 1,200 he Balance 1$2,398 Balance $10,457) office supplies office Equipment $ 10,984 b. $566 Balance $10,784 Balance $566

Accounts Payable $ 10,784 0 $10,784 Common Stock a $ 19,500 Balance Balance $19,500 Dividends fees Earned i $1,200 a $2,301 If $ 4,134 Balance $1,200 Balance $6,435 Rent Expense g $530 Balance $530