Reference no: EM131782706

Exercise- Preparing a trial balance

'The transactions of Spade Company appear below.

a. Kacy Spade, owner, invested $16,000 cash in the company in exchange for common stock.

b. The company purchased office supplies for $464 cash.

c. The company purchased $8,848 of office equipment on credit.

d. The company received $1,888 cash as fees for services provided to a customer.

e. The company paid $8,848 cash to settle the payable for the office equipment purchased in transaction c.

f. The company billed a customer $3,392 as fees for services provided.

g. The company paid $515 cash for the monthly rent.

h. The company collected $1,425 cash as partial payment for the account receivable created in transaction f.

i. The company paid $800 cash in dividends to the owner (sole shareholder).

Prepare the Trial Balance.

Exercise- Preparing general journal entries

Following are the transactions of a new company called Pose-for-Pics.

Aug. 1 Madison Harris, the owner, invested $13,500 cash and $58,050 of photography equipment in the company in exchange for common stock.

2 The company paid $3,400 cash for an insurance policy covering the next 24 months.

5 The company purchased office supplies for $2,565 cash.
20 The company received $2,350 cash in photography fees earned.
31 The company paid $878 cash for August utilities.

Prepare general journal entries for the above transactions.

Exercise- Recording effects of transactions in T-accounts

'The transactions of Spade Company appear below.

a. Kacy Spade, owner, invested $18,250 cash in the company in exchange for common stock.

b. The company purchased office supplies for $529 cash.

c. The company purchased $10,092 of office equipment on credit.

d. The company received $2,153 cash as fees for services provided to a customer.

e. The company paid $10,092 cash to settle the payable for the office equipment purchased in transaction c.

f. The company billed a customer $3,869 as fees for services provided.

g. The company paid $530 cash for the monthly rent.

h. The company collected $1,625 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).

Required:

1. 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.