The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $

Question

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)

Explanation / Answer

Solution:

Cash

a. Common Stock

$ 18,000

b.Office supplies

$ 522

d.Fees Earned

2,124

e.Accounts Payable

9,954

h.Accounts Receivable

1,603

g.Rent expense

530

i.Dividends

1,000

Balance

$ 9,721

Account Receivable

f.Fees Earned

$ 3,816

h.Cash

$ 1,603

Balance

$ 22,13

Office Supplies

b.Cash

$ 522

Balance

$ 522

Office Equipment

c.Accounts Payable

$ 9,954

Balance

$ 9,954

Accounts Payable

e.Cash

$ 9,954

c.Office Equipment

$ 9,954

Balance

0

Common Stock

a. Cash

$ 18,000

Balance

$ 18,000

Dividends

i. Cash

$ 1,000

Balance

$ 1,000

Fees Earned

d.Cash

$ 2,124

f.Accounts Receivable

3,816

Balance

$ 5,940

Rent Expense

g.Cash

$ 530

Balance

$ 530

a. Common Stock

$ 18,000

b.Office supplies

$ 522

d.Fees Earned

2,124

e.Accounts Payable

9,954

h.Accounts Receivable

1,603

g.Rent expense

530

i.Dividends

1,000

Balance

$ 9,721

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