Option #1: The Case of Kacy Spade In this case, you will record the effects of t

Question

Option #1: The Case of Kacy Spade

In this case, you will record the effects of transactions using the accrual method of accounting.

Prepare general journal entries using an Excel spreadsheet to record the transactions listed below for the Spade Company.

Assignment Template attached below

Use the following chart of accounts:

Cash

Accounts receivable

Office supplies

Office equipment

Accounts payable

K. Spade, capital

K. Spade, withdrawals

Fees earned

Rent expense

Use the letters beside each transaction to identify your entries:

Kacy Spade, owner, invested $10,750 cash in the company.

The company purchased office supplies for $312 cash.

The company purchased $5,945 of office equipment on credit.

The company received $1,268 cash as fees for services provided to a customer.

The company paid $5,945 cash to settle the payable for the office equipment purchased in transaction c.

The company billed a customer $2,279 as fees for services provided.

The company paid $510 cash for the monthly rent.

The company collected $957 cash as partial payment for the account receivable created in transaction f.

Kacy Spade withdrew $1,000 cash from the company for personal use.

Instructions:

In an Excel spreadsheet, prepare journal entries a through i. Make sure that the debits equal the credits for each journal entry. Under each journal entry, include one sentence that explains the transaction. For an explanation, see the solution to the demonstration problem in Chapter 2 of the textbook.

Module 1- CT Template Option #1 SPADE COMPANY Acct Name Debit Credit (A)1 CASH (B)(2 office supplies (C)3 office equipment (D)4 Cash (F)5 account Payable (G)6 Accounts Receivable 7 K. Spade,withdrawals 8 fees earned 9 rent

Explanation / Answer

Journal Entries S.No Particulars Dr Amt Cr Amt a Cash A/C Dr            10,750.00 To K Spade Capital          10,750.00 (Being Capital brought in cash) b) Office Supplies Dr                  312.00 To Cash                312.00 (Being Supplies purchased in cash) c) Office equipment Dr              5,945.00 To Accounts Payable            5,945.00 (Being Office equipment is purchased on credit) d) Cash A/C Dr              1,268.00 To Fees Earned            1,268.00 (Being services provided in cash) e) Accounts Payable Dr              5,945.00 To Cash A/C            5,945.00 (Being AP paid in cash) f) Accounts Receivable Dr              2,279.00 To Fees Earned            2,279.00 (Being services provided in cash) g Rent Expense A/C Dr                  510.00 To Cash A/C                510.00 (Being rent paid in cash) h) Cash A/C Dr                  957.00 To Accounts Receivable                957.00 (Being AR made partial payment) i) K Spade Withdrawls Dr              1,000.00 To Cash A/C            1,000.00 (Being Withdrawls made in cash)

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