Reference no: EM132657634

The transactions of Spade Company appear below. Kacy Spade, owner, invested $19,750 cash in the company.

1. The company purchased office supplies for $573 cash.
2. The company purchased $10,922 of office equipment on credit.
3. The company received $2,330 cash as fees for services provided to a customer.
4. The company paid $10,922 cash to settle the payable for the office equipment purchased in transaction c.
5. The company billed a customer $4,187 as fees for services provided.
6. The company paid $525 cash for the monthly rent.
7. The company collected $1,759 cash as partial payment for the account receivable created in transaction f.
8. Kacy Spade withdrew $1,100 cash from the company for personal use.

Required:

Problem 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.

Problem 2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.