Question

The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $13,250 cash in the company. b. The company purchased office supplies for $384 cash. c. The company purchased $7,327 of office equipment on credit. d. The company received $1,564 cash as fees for services provided to a customer. e. The company paid $7,327 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $2,809 as fees for services provided. g. The company paid $515 cash for the monthly rent. h. The company collected $1,180 cash as partial payment for the account receivable created in transaction f. i. Kacy Spade withdrew $1,000 cash from the company for personal use.Required: 1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: i. Cash ii. Accounts Receivable iii. Office Supplies iv. Office Equipment v. Accounts Payable vi. Common Stock vii. Dividends viii. Fees Earned 2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.

Answer 1

Answer:

See the answers and explanation below.

Explanation:

1. Prepare general journal entries to record the transactions above for Spade Company

These can presented as follows:

Trans.    General Journal                       Debit ($)            Credit ($)        

   a.        Cash                                            13,250

                 Common stock                                                  13,250

              (To record cash investment by the owner in the company.)    

   b.        Office supplies                               384

                  Cash                                                                       384

               (To record cash purchase of office supplies.)                          

   c.        Office equipment                         7,327

                  Account payable                                                 7,327

              (To record purchase of office equipment on credit.)              

   d.        Cash                                             1,564

                  Fees earned                                                         1,564

            (To record cash received as fees for service rendered.)        

   e.        Account payable                         7,327

                  Cash                                                                    7,327

              (To record cash paid for office equipment bought on credit.)

    f.        Account receivable                     2,809

                 Fees earned                                                        2,809

               (To record fees earned from services provided on credit.)    

    g.        Rent                                                515

                  Cash                                                                       515

                (To record monthly rent paid in cash.)                                    

    h.         Cash                                             1,180

                    Account receivable                                           1,180

                (To record partial cash receipt from account receivable.)    

    i.           Dividend                                     1,000

                   Cash                                                                    1,000

                (To record drawings by Kacy for personal use.)                    

2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.

Note: Find the attached the excel file for the T-accounts.