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a) Kacy Spade, owner, invested $18,000 cash in the company in exchange for commo

ID: 2396249 • Letter: A

Question

a) Kacy Spade, owner, invested $18,000 cash in the company in exchange for common stock.

b) The company purchased office supplies for $522 cash.

c) The company purchased $9,954 of office equipment on credit.

d) The company received $2,124 cash as fees for services provided to a customer.

e) The company paid $9,954 cash to settle the payable for the office equipment purchased in transaction c.

f) The company billed a customer $3,816 as fees for services provided.

g) The company paid $530 cash for the monthly rent.

h) The company collected $1,603 cash as partial payment for the account receivable created in transaction f.

i) The company paid $1,000 cash in dividends to the owner (sole shareholder).

The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $18,000 cash in the company in exchange for common stock. b. The company purchased office supplies for $522 cash. c. The company purchased $9,954 of office equipment on credit. d. The company received $2,124 cash as fees for services provided to a customer. e. The company paid $9,954 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $3,816 as fees for services provided. g. The company paid $530 cash for the monthly rent. h. The company collected $1,603 cash as partial payment for the account receivable created in transaction f i. The company paid $1,000 cash in dividends 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.

Explanation / Answer

a Cash 18000       Common Stock 18000 b Office supplies 522        Cash 522 c Office Equipment 9954      Accounts payable 9954 d Cash 2124      Fees earned 2124 e Accounts payable 9954        Cash 9954 f Accounts Receivable 3816      Fees earned 3816 g Rent expense 530        Cash 530 h Cash 1603      Accounts Receivable 1603 i Dividends 1000        Cash 1000