Question

Check m Exercise 2-9 Recording effects of transactions in T-accounts LO A1 The transactions of Spade Company appear below a. Kacy Spade, owner, invested $17000 cash in the company in exchange for common stock. b. The company purchased office supplies for $493 cash. c. The company purchased $9.401 of office equipment on credit. d. The company received $2,006 cash as fees for services provided to a customer. e. The company paid $9,401 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $3,604 as fees for services provided. g. The company paid $510 cash for the monthly rent h. The company collected $1,514 cash as partial payment for the account receivable created in transaction f i. The company paid $1,100 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

1. Journal entries.

S No		Folio			Dr	Cr
					$	$
a)	Dr	Cash			17000
	Cr		Common Stock			17000
	(Being cash deposited by owner in exchange of common stock)
b)	Dr	Office Supplies			493
	Cr		Cash			493
	(Being office supplies purchased for cash)
c)	Dr	Office Equipment			9401
	Cr		Accounts Payable			9401
	(Being office equipment purchased for credit)
d)	Dr	Cash			2006
	Cr		Fee Earned			2006
	(Being cash received as fee for services provided to customer)
e)	Dr	Accounts payable			9401
	Cr		Cash			9401
	(Being cash paid for office equipment purchased for credit)
f)	Dr	Accounts Receivable			3604
	Cr		Fee Earned			3604
	(Being Bill raised to customer for services provided)
g)	Dr	Rent Expense			510
	Cr		Cash			510
	(Being cash paid for monthly rent)
h)	Dr	Cash			1514
	Cr		Accounts Receivable			1514
	(Being part payment received for services provide to customer )

i)	Dr	Dividends			1100
	Cr		Cash			1100
	(Being cash dividend paid )

2. T accounts - pls refer the image