The transactions of Spade Company appear below. Kacy Spade, owner, invested $100
ID: 2402358 • Letter: T
Question
The transactions of Spade Company appear below.
Kacy Spade, owner, invested $100,750 cash in the company.
The company purchased office supplies for $1,250 cash.
The company purchased $10,050 of office equipment on credit.
The company received $15,500 cash as fees for services provided to a customer.
The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c.
The company billed a customer $2,700 as fees for services provided.
The company paid $1,225 cash for the monthly rent.
The company collected $1,125 cash as partial payment for the account receivable created in transaction f.
Kacy Spade withdrew $10,000 cash from the company for personal use.
Required:
1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; K. Spade, Capital; K. Spade, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside each transaction to identify entries.
2. Post the above journal entries to T-accounts, which serves as the general ledger for this assignment.
Explanation / Answer
ANS
1) JOURNAL ENTRIES
PARTICULARS DR($) CR($)
A) CASH A/C DR 100750
TO K.SPADE CAPITAL A/C 100750
(BEING CASH INVESTED)
B) OFFICE SUPPLIES A/C DR 1250
TO CASH A/C 1250
(BEING OFFICE SUPPLIES PURCHASED)
C) OFFICE EQUIPMENT A/C DR 10050
TO ACCOUNTS PAYABLE A/C 10050
(BEING EQUIPMENT PURCHASED ON CREDIT)
D) CASH A/C DR 15500
TO FEES EARNED A/C 15500
(BEING CASH CASH RECEIVED )
E) ACCOUNTS PAYABLE A/C DR 10050
TO CASH A/C 10050
(BEING CASH PAID)
F) ACCOUNTS RECEIVABLE A/C DR 2700
TO FEES EARNED A/C 2700
(BEING CUSTOMER BILLED)
G) RENT EXPENSE A/C DR 1225
TO CASH A/C 1225
(BEING RENT PAID)
H) CASH A/C DR 1125
TO ACCOUNTS RECEIVABLE A/C 1125
(BEING CASH RECEIVED)
I) K.SPADE WITHDRWALS A/C DR 10000
TO CASH A/C 10000
(BEING CASH WITHDRAWN)
2) CASH
A) 100750 B) 1250
H) 15500 E) 10050
J) 1125 G) 1125
I) 10000
BALANCE 94850
ACCOUNTS RECEIVABLE
F) 2700 B) 1125
BALANCE 1575
OFFICE SUPPLIES
A) 1250
BALANCE 1250
OFFICE EQUIPMENT
C) 10050
BALANCE 10050
ACCOUNTS PAYABLE
E) 10050 C) 10050
BALANCE 0
FEES EARNED
D) 15500
F) 2700
BALANCE 18200
RENT EXPENSE
G) 1225
BALANCE 1225
K.SPADE CAPITAL
A) 100750 BALANCE 100750
K.SPADE WITHDRAWLS
I) 10000
BALANCE 10000
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