The transactions of Spade Company. Kacy Spade, owner,invested $18.000 cash in th

Question

The transactions of Spade Company. Kacy Spade, owner,invested $18.000 cash in the company in exchange for common stock The company purchased office supplies for $522 cash The company purchased $9.954 of office equipment on credit The company received $2,124 cash, as fees for Services provided to a customer. The company paid $9.954 cash to settle the payable for theoffice equipment purchased in transaction c The company billed a customer $3.816 as fees for services provided The company paid $515 cash for the monthly rent The company collected $1.603 cash as partial payment for the account receivable created in transaction t. The company paid $1700 cash in dividends to Spade Prepare general journal entries to record the transaction 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

Explanation / Answer

Journal entries are recorded as under:

Date Particulars L.F Amount ($) Amount ($) a Cash 18,000    Common stock 18,000 (Cash invested in business in exchange of common stock) b Office Supplies 550    Cash 550 (For office supplies purchased in cash) c Office Equipment 9,954    Accounts Payable 9,954 (For office equipment purchased for $9,954) d Cash 2,124    Fees Earned 2,124 (For cash received against the service revenue) e Accounts payable 9,954    Cash 9,954 (For cash paid for equipment purchased) f Accounts Receivable 3,816    Fees Earned 3,816 (For billed customers against the service revenue) g Rent 515    Cash 515 (For paid for monthly rent) h Cash 1,603    Accounts receivable 1,603 (For cash collected from customers) i Dividends 1,200    Cash 1,200 (For cash dividend paid)

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