Question

The transactions of Spade Company appear below.

1. Kacy Spade, owner, invested $16,000 cash in the company in exchange for common stock.
2. The company purchased office supplies for $464 cash.
3. The company purchased $8,848 of office equipment on credit.
4. The company received $1,888 cash as fees for services provided to a customer.
5. The company paid $8,848 cash to settle the payable for the office equipment purchased in transaction c.
6. The company billed a customer $3,392 as fees for services provided.
7. The company paid $525 cash for the monthly rent.
8. The company collected $1,425 cash as partial payment for the account receivable created in transaction f.
9. The company paid $1,100 cash in dividends to the owner (sole shareholder).

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; Common Stock; Dividends; Fees Earned; and Rent Expense. Use the letters beside each transaction to identify entries.
2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.

Answer 1

a. General journal entries to record the transactions above for Spade Company are as prepared below:

Date	Particulars	L.F	Amount ($)	Amount ($)
a.	Cash		16,000
	Common Stock			16,000
	(for shares issued in excahnge for cash)
b.	Office Supplies		464
	Cash			464
	(For office supplies purchased)
c.	Office Equipment		8,848
	Account payable			8,848
	(For office equipment purchased)
d.	Cash		1,888
	Fees Earned			1888
	(For cash received for service provided)
e.	Account Payable		8,848
	cash			8,848
	(for paid to account payable)
f.	Account Receivable		3,392
	Fees Earned			3,392
	(For billed a customer)
g.	Rent Expense		525
	cash			525
	(for rent paid)
h.	Cash		1,425
	Account Receivable			1425
	(for collected from account receivable)
i.	Dividends		1,100
	Cash			1100
	(For cash paid as dividends)

2. T-accounts are as prepared below:

Cash
Particulars	Amount	Particulars	Amount
a.	16,000	b.	464
d.	1,888	e	8,848
h.	1,425	g	525
		i	1,100
	19,313		10,937
Closing	8,376
Office Supplies
Particulars	Amount	Particulars	Amount
b.	464
	464		0
	464
Office Equipment
Particulars	Amount	Particulars	Amount
c	8,848
	8,848		0
	8,848
Account Payable
Particulars	Amount	Particulars	Amount
e.	8,848	c	8,848
	8,848		8,848
Fees earned
Particulars	Amount	Particulars	Amount
		d.	1,888
		f.	3,392
	0		5,280
Account Receivable
Particulars	Amount	Particulars	Amount
f.	3,392	h.	1,425
	3,392		1,425
	1,967
Rent Expense
Particulars	Amount	Particulars	Amount
g.	525
	525		0
Dividend
Particulars	Amount	Particulars	Amount
i	1,100
	1,100		0
	1,100
Common Stock
Particulars	Amount	Particulars	Amount
		a.	16,000
	0		16,000
		Closing	16,000