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 journal matches at $153,100, and the cash account has a balance of $94,850.

Step-by-step solution

Journal entries

Date	Description	Debit	Credit
a	Cash	$100,750
	Capital		$100,750
	Being cash invested into the business
b	Office supplies	$1,250
	Cash		$1,250
	Being office supplies purchased on cash
c	Office equipment	$10,050
	Accounts payable		$10,050
	Being office equipment purchased on credit
d	Cash	$15,500
	Fees Earned		$15,500
	Being revenue earned
e	Accounts Payable	$10,050
	Cash		$10,050
	Being accounts payable paid
f	Accounts Receivables	$2,700
	Fees Earned		$2,700
	Being fees earned
g	Rent expense	$1,225
	Cash		$1,225
	Being rent paid
h	Cash	$1,125
	Accounts receivables		$1,125
	Being amount collected from receivables
i	Dividend	$10,000
	Cash		$10,000
	Being dividend paid
	Total	$153,100	$153,100

T Accounts

Cash
a) $100,750	$1,250 b)
d) 15,500	10,050 e)
h) 1,125	1,225 g)
	10,000 i)
Balance $94,850

Capital
	$100,750 a)
Balance	$100,750

Office Supplies
b) $1,250
Balance $1,250

Office Equipment
c) $10,050
Balance $10,050

Accounts payable
e) $10,050	$10,050 c)
Balance	0

Fees earned
	$15,500 d)
	2,700 f)
Balance	$18,200

Accounts Receivables
f) $2,700	$1,125 h)
Balance $1,575

Rent Expense
g) $1,225
Balance $1,225

Dividend
i) $10,000
Balance $10,800