Question

Exercise 2-9

Recording effects of transactions in T-accounts A1

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. After recording the transactions, post them to T-accounts, which serves as the general ledger for this assignment. Determine the ending balance of each T-account.

Kacy Spade, owner, invested $100,750 cash in the company in exchange for common stock.

The company purchased office supplies for $1,250 cash.

The company purchased $10,050 of office equipment on credit.

The company received $15,500 cash as fees for services provided to a customer.

The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c.

The company billed a customer $2,700 as fees for services provided.

The company paid $1,225 cash for the monthly rent.

The company collected $1,125 cash as partial payment for the account receivable created in transaction f.

The company paid $10,000 cash in dividends to the owner (sole shareholder).