For the following transactions of Spade Company, (1) Prepare general journal entries (2) Post entries to T-accounts
Question:
For the following transactions of Spade Company,
(1) Prepare general journal entries
(2) Post entries to T-accounts and calculate the ending balance of each T-account. Use the following accounts: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; Common Stock; Dividends; Services Revenue; and Rent Expense.
a. Kacy Spade, owner, invested $100,750 cash in the company in exchange for common stock.
b. The company purchased supplies for $1,250 cash.
c. The company purchased $10,050 of equipment on credit.
d. The company received $15,500 cash for services provided to a customer.
e. The company paid $10,050 cash to settle the payable for the equipment purchased in transaction c.
f. The company billed a customer $2,700 for services provided.
g. The company paid $1,225 cash for the monthly rent.
h. The company collected $1,125 cash as partial payment for the account receivable created in transaction f.
i. The company paid a $10,000 cash dividend to the owner (sole shareholder).
Step by Step Answer:
Financial Accounting Information For Decisions
ISBN: 9781260705584
10th Edition
Authors: John J. Wild