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Exercise 2-9 Recording effects of transactions in T-accounts LO A1 The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $16,250 cash
Exercise 2-9 Recording effects of transactions in T-accounts LO A1 The transactions of Spade Company appear below. a. Kacy Spade, owner, invested $16,250 cash in the company in exchange for common stock. b. The company purchased office supplies for $471 cash. c. The company purchased $8,986 of office equipment on credit. d. The company received $1,917 cash as fees for services provided to a customer. e. The company paid $8,986 cash to settle the payable for the office equipment purchased in transaction c f. The company billed a customer $3,445 as fees for services provided. g. The company paid $515 cash for the monthly rent. h. The company collected $1,447 cash as partial payment for the account receivable created in transaction f i. The company paid a $1,200 cash dividend 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. 2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment.
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