Question

Prepare general journal entries to record the transactions below for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment:; Accounts Payable; Recording effects of K. Spade, Capital: K. Spade, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside each transactions in T-accounts transaction to identify entries. After recording the transactions, post them to T-accounts, which serves as A the general ledger for this assignment. Determine the ending balance of each T-account.
a. Kacy Spade, owner, invested $100,750 cash in the company
b. The company purchased office supplies for $1,250 cash.
c. The company purchased S10,050 of office equipment on credit.
d. The company received S15,500 cash as fees for services provided to a customer.
e. The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c
f. The company billed a customer $2,700 as fees for services provided.
g. The company paid $1,225 cash for the monthly rent.
h. The company collected S1,125 cash as partial payment for the account receivable created in transaction f.
i. Kacy Spade withdrew $10.000 cash from the company for personal use.

Answer 1

Answer:

a. Cash (Dr.) $100,750

Capital (Cr.) $100,750

b. Office Supplies (Dr.) $1,250

Cash (Cr.) $1,250

c. Office equipment (Dr.) $10,050

Accounts Payable (Cr.) $10,050

d. Cash (Dr.) $15,500

Service revenue (Cr.) $15,500

e. Accounts Payable (Dr.) $10,050

Cash (Cr.) $10,050

f. Accounts Receivable (Dr.) $2,700

Service Revenue (Cr.) $2,700

g. Rent Expense (Dr.) $1,225

Cash (Cr.) $1,225

h. Cash (Dr.) $1,125

Accounts Receivable (Cr.) $1,125

i. Capital / Cash (Dr.) $10,000

Drawings (Cr.) $10,000

Explanation:

Trial Balance :

Debits :

Cash $104,850

Accounts Receivable $1,575

Office supplies $1,250

Office equipment $10,050

Rent expense $1,225

Total $118,950

Credits :

Accounts Payable 0

Service Revenue $18,200

Capital $90,750

Drawings $10,000

Total $118,950