Question

Kacy Spade, owner, invested $100,750 cash in the company. The company purchased office supplies for $1,250 cash. The company purchased $10,050 of office equipment on credit. The company received $15,500 cash as fees for services provided to a customer. The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c. The company billed a customer $2,700 as fees for services provided. The company paid $1,225 cash for the monthly rent. The company collected $1,125 cash as partial payment for the account receivable created in transaction f. Kacy Spade withdrew $10,000 cash from the company for personal use. 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; K. Spade, Capital; K. Spade, Withdrawals; 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

Date	General Journal			Debit	Credit
a	Cash			100,750
	K.Spade, Capital				100,750
b	Office Supplies			1,250
	Cash				1,250
c	Office Equipment			10,050
	Accounts payable				10,050
d	Cash			15,500
	Fees Earned				15,500
e	Accounts payable			10,050
	cash				10,050
f	Accounts receivable			2,700
	Fees earned				2,700
g	Rent expense			1,225
	cash				1,225
h	Cash			1,125
	Accounts receivable				1,125
i	K.Spade, Withdrawals			10,000
	Cash				10,000

Cash
a	100,750	b	1,250
d	15,500	e	10,050
h	1,125	g	1,225
		i	10,000
Balance	94,850
Accounts Receivable
f	2,700	h	1,125
Balance	1,575
Office supplies
b	1,250
Balance	1,250
Office Equipment
c	10,050
Balance	10,050
Accounts payable
e	10,050	c	10,050
Balance			0
K.Spade,Capital
		a	100,750
Balance			100,750
K.Spade,withdrawals
i	10,000
Balance	10,000
Fees Earned
		d.	15,500
		f	2,700
Balance			18,200
Rent expense
g.	1,225
Balance	1,225