Respuesta :
Question Completion:
The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $18,750 cash in the company in exchange for common stock. b. The company purchased office supplies for $544 cash. c. The company purchased $10,369 of office equipment on credit. d. The company received $2,212 cash as fees for services provided to a customer. e. The company paid $10,369 cash to settle the payable for the office equipment purchased in transaction c. f. The company billed a customer $3,975 as fees for services provided. g. The company paid $530 cash for the monthly rent. h. The company collected $1,670 cash as partial payment for the account receivable created in transaction f. i. The company paid $1,000 cash in dividends to the owner (sole shareholder).
Answer:
Spade Company
General Journal Entries:
a. Debit Cash $18,750
Credit Common stock $18,750
To record cash contributed in exchange of common stock.
b. Debit Office supplies $544
Credit Cash $544
To record the purchase of office supplies.
c. Debit Office Equipment $10,369
Credit Accounts Payable $10,369
To record the purchase of office equipment on account.
d. Debit Cash $2,212
Credit Fees Earned $2,212
To record the receipt of cash for earned fees.
e. Debit Accounts Payable $10,369
Credit Cash $10,369
To record the payment for office equipment.
f. Debit Accounts Receivable $3,975
Credit Fees Earned $3,975
To record the supply of services on account.
g. Debit Rent Expense $530
Credit Cash $530
To record payment for monthly rent.
h. Debit Cash $1,670
Credit Account receivable $1,670
To record the receipt of cash on account.
i. Debit Dividends $1,000
Credit Cash $1,000
To record the payment of cash dividend.
2. T-accounts:
Cash
Account Title      Debit    Credit
Common stock   $18,750
Office supplies           $544
Fees Earned       2,212
Accounts Payable        10,369
Rent Expense             530
Account receivable 1,670
Dividends               1,000
Accounts receivable
Account Title      Debit    Credit
Fees Earned     $3,975
Cash                    $1,670
Office Supplies
Account Title      Debit    Credit
Cash            $544
Office Equipment
Account Title      Debit    Credit
Accounts Payable $10,369
Common Stock
Account Title      Debit    Credit
Cash                    $18,750
Accounts Payable
Account Title      Debit    Credit
Office Equipment         $10,369
Cash           $10,369
Fees Earned
Account Title        Debit    Credit
Cash              $2,212
Accounts Receivable 3,975
Rent Expense
Account Title        Debit    Credit
Cash              $530
Dividends
Account Title        Debit    Credit
Cash             $1,000
Explanation:
a) Data and Analysis:
a. Cash $18,750 Common stock $18,750
b. Office supplies $544 Cash $544
c. Office Equipment $10,369 Accounts Payable $10,369
d. Cash $2,212 Fees Earned $2,212
e. Accounts Payable $10,369 Cash $10,369
f. Accounts Receivable $3,975 Fees Earned $3,975
g. Rent Expense $530 Cash $530
h. Cash $1,670 Account receivable $1,670
i. Dividends $1,000 Cash $1,000
