Question

The transactions of Spade Company appear below. Kacy Spade, owner, invested $16,500 cash in the company in exchange for common stock. The company purchased office supplies for $479 cash. The company purchased $9,125 of office equipment on credit. The company received $1,947 cash as fees for services provided to a customer. The company paid $9,125 cash to settle the payable for the office equipment purchased in transaction c. The company billed a customer $3,498 as fees for services provided. The company paid $515 cash for the monthly rent. The company collected $1,469 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).

Answer 1

Answer:

Answer:

Assets                                   Liabilities

Cash              4, 100               Account Payable   1, 100

Equipment   16,500               Note Payable       10,500

Land              8,500              Equity

                                            Common Stock      11,000

                                            Retained Earnings  6,500

Total Assets 29,100              Total Liab + SE      29, 100

Explanation:

Retained earnings will be calculate using the accounting equation

Assets =            liab       +      equity

29,100 = 1,100 + 10,500 +  11,000 + RE

RE = 29,100 - 1,100 - 10,500 - 11,000 = 6,500

Explanation: