Answer:
Kacy Spade, owner, invested $100,750 cash in the company in exchange for common stock.
Dr Cash 100,750
Cr Common stock 100,750
The company purchased office supplies for $1,250 cash.
Dr Supplies 1,250
Cr Cash 1,250
The company purchased $10,050 of office equipment on credit.
Dr Equipment 10,050
Cr Accounts payable 10,050
The company received $15,500 cash as fees for services provided to a customer.
Dr Cash 15,500
Cr Fees earned 15,500
The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction
Dr Accounts payable 10,050
Cr Cash 10,050
c. The company billed a customer $2,700 as fees for services provided.
Dr Accounts receivable 2,700
Cr Fees earned 2,700
The company paid $1,225 cash for the monthly rent.
Dr Rent expense 1,225
Cr Cash 1,225
The company collected $1,125 cash as partial payment for the account receivable created in transaction
Dr Cash 1,125
Cr Accounts receivable 1,125
f. The company paid a $10,000 cash dividend to the owner (sole shareholder).
Dr Dividends 10,000
Cr Cash 10,000
<u>Cash</u> <u>Common stock</u>
debit credit debit credit
100,750 100,750
1,250
15,500
10,050
1,225
1,125
<u> 10,000</u>
94,850
<u>Supplies</u> <u>Equipment</u>
debit credit debit credit
1,250 10,050
<u>Accounts payable</u> <u>Fees earned</u>
debit credit debit credit
10,050 15,500
<u>10,050 </u> <u> 2,700 </u>
0 0 18,200
<u>Accounts receivable</u> <u>Rent expense</u>
debit credit debit credit
2,700 1,225
<u> 1,125 </u>
1,575
<u>Dividends</u>
debit credit
10,000
