Kacy Spade, owner, invested $10,750 cash in the company in exchange for common stock. The company purchased office supplies for $312 cash. The company purchased $5,945 of office equipment on credit. The company received $1,268 cash as fees for services provided to a customer. The company paid $5,945 cash to settle the payable for the office equipment purchased in transaction c. The company billed a customer $2,279 as fees for services provided. The company paid $525 cash for the monthly rent. The company collected $957 cash as partial payment for the account receivable created in transaction f. The company paid a $900 cash dividend to the owner (sole shareholder).

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.

Question

Business

Leah Owen

10 December, 06:48

Kacy Spade, owner, invested $10,750 cash in the company in exchange for common stock. The company purchased office supplies for $312 cash. The company purchased $5,945 of office equipment on credit. The company received $1,268 cash as fees for services provided to a customer. The company paid $5,945 cash to settle the payable for the office equipment purchased in transaction c. The company billed a customer $2,279 as fees for services provided. The company paid $525 cash for the monthly rent. The company collected $957 cash as partial payment for the account receivable created in transaction f. The company paid a $900 cash dividend to the owner (sole shareholder).

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.

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Delilah Evans · Answer 1

Accounts Debit ($) Credit ($)

Cash 10,750

Common Stock 10,750

Being cash invested for common stock

in the business

Office Supplies 312

Cash 312

Being office supplies purchased with cash

Office Equipment 5,945

Account Payable 5,945

Being office equipment purchased on credit

Cash 1,268

Fees Earned 1,268

Being cash received on service rendered

to a customer

Account Payable 5,945

Cash 5,945

Being settlement of amount owned for

office equipment

Account receivable 2,279

Fees Earned 2,279

Being recognition of amount owned

by customer

Rent Expense 525

Cash 525

Being cash paid for rent

Cash 957

Account Receivable 927

Being cash collected for account receivable

Dividend 900

Cash 900

Being dividend paid with cash

Explanation:

Journal entry entries are used to record accounting effect of business transactions. General journal has two sides that make up debit and credit.

Entries on the debit side are assets or expenses while entries on the credit sides are liabilities, equity and income.

Journal also has a narration for each accounting event to provide information about the entry.