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artcher [175]
3 years ago
5

The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $13,250 cash in the company. b. The company purch

ased 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.
Business
1 answer:
GalinKa [24]3 years ago
5 0

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:

<u>Trans.    General Journal                       Debit ($)            Credit ($)        </u>

   a.        Cash                                            13,250

                 Common stock                                                  13,250

<em><u>               (To record cash investment by the owner in the company.)     </u></em>

   b.        Office supplies                               384

                  Cash                                                                       384

<em><u>                (To record cash purchase of office supplies.)                          </u></em>

   c.        Office equipment                         7,327

                  Account payable                                                 7,327

<u><em>               (To record purchase of office equipment on credit.)               </em></u>

   d.        Cash                                             1,564

                  Fees earned                                                         1,564

<em><u>             (To record cash received as fees for service rendered.)         </u></em>

   e.        Account payable                         7,327

                  Cash                                                                    7,327

<em><u>               (To record cash paid for office equipment bought on credit.) </u></em>

    f.        Account receivable                     2,809

                 Fees earned                                                        2,809

<em><u>                (To record fees earned from services provided on credit.)    </u></em>

    g.        Rent                                                515

                  Cash                                                                       515

<em><u>                 (To record monthly rent paid in cash.)                                    </u></em>

    h.         Cash                                             1,180

                    Account receivable                                           1,180

<u><em>                 (To record partial cash receipt from account receivable.)     </em></u>

    i.           Dividend                                     1,000

                   Cash                                                                    1,000

<u><em>                 (To record drawings by Kacy for personal use.)                    </em></u>

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.

Download xlsx
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