Reference no: EM132378979

Question

Kacy Spade, owner, invested $14,000 cash in the company in exchange for common stock.

The company purchased office supplies for $406 cash.

The company purchased $7,742 of office equipment on credit.

The company received $1,652 cash as fees for services provided to a customer.

The company paid $7,742 cash to settle the payable for the office equipment purchased in transaction c.

The company billed a customer $2,968 as fees for services provided.

The company paid $525 cash for the monthly rent.

The company collected $1,247 cash as partial payment for the account receivable created in transaction f.

The company paid $900 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.