Question

Kacy Spade, owner, invested $11,750 cash in the company in exchange for common stock. The company purchased office supplies for $341 cash. The company purchased $6,498 of office equipment on credit. The company received $1,387 cash as fees for services provided to a customer. The company paid $6,498 cash to settle the payable for the office equipment purchased in transaction c. The company billed a customer $2,491 as fees for services provided. The company paid $525 cash for the monthly rent. The company collected $1,046 cash as partial payment for the account receivable created in transaction f. The company paid a $1,000 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. 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.

Answer 1

Answer:

Cash  11,750 debit

     Common Stock  11,750 credit

Supplies   341 debit

    Cash           341 credit

Equipment 6,489 debit

         Accounts Payable   6,489 credit

Cash    1,387 debit

   Fees Earned  1,387 credit

Accounts Payable 6,498 debit

                  Cash          6,498 credit

Cash      2,491 debit

  Fees Earned   2,491 credit

rent expense 525 debit

    Cash                   525 credit

Cash        1,046 debit

     Accounts Receivables   1,046 credit

Dividends   1,000 debit

       Cash            1,000 credit

Cash T-accounts

Debit     Credit    

    11750

                 341

      1387

               6498

      2491

                  525

      1046

                1000

    16674 8364    

Bal  8310

Explanation:

To record journal entries we should always make sure debit colum equals credit column.

Also, each account can only be used one time per entry and with one value.

The T-account represent all the movement of an account.

We list each debit and credit made to that account in the course of the accounting cycle.

Then we calcualte the difference and determinated the balance.