Question

• Question:Prepare general journal entries to record the transactions below 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. After recording the transactions, post them to T-accounts, which serve as the general ledger for this assignment. Determine the ending balance of each T-account.

a. Kacy Spade, owner, invested \(100,750 cash in the company in exchange for common stock.

b. The company purchased office supplies for \)1,250 cash.

c. The company purchased \(10,050 of office equipment on credit.

d. The company received \)15,500 cash as fees for services provided to a customer.

e. The company paid \(10,050 cash to settle the payable for the office equipment purchased in transaction c.

f. The company billed a customer \)2,700 as fees for services provided.

g. The company paid \(1,225 cash for the monthly rent.

h. The company collected \)1,125 cash as partial payment for the account receivable created in transaction f.

i. The company paid $10,000 cash in dividends to the owner (sole shareholder).

Short answer

Answer

The total of trial balance at $118,951.

Step-by-step solution

Trial Balance

Trial Balance is the list of all accounts with their balances. Thus, trial balance lists all accounts’ credit balances on the right side and all accounts’ debit balance on the left side.

Trial balance as on May 31, 2017

Particulars	Debit	Credit
Cash	$94,850
Capital		$100,750
Office supplies	$1,250
Office Equipment	$10,050
Accounts Payable		0
Fees Earned		$18,200
Accounts receivables	$1,575
Rent Expenses	$1,225
Dividend	$10,000
Total	$1,18,950	$1,18,950