Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The transactions of Spade Company appear below. a. K. Spade, owner, invested $18,250 cash in the company in exchange for common stock. b. The company

image text in transcribed

The transactions of Spade Company appear below. a. K. Spade, owner, invested $18,250 cash in the company in exchange for common stock. b. The company purchased supplies for $529 cash. c. The company purchased $10,092 of equipment on credit. d. The company received $2,154 cash for services provided to a customer. e. The company paid $10,092 cash to settle the payable for the equipment purchased in transaction c. f. The company billed a customer $3,869 for services provided. g. The company paid $515 cash for the monthly rent. h. The company collected $1,625 cash as partial payment for the account receivable created in transaction f. 1. The company paid a $1,100 cash dividend to the owner (sole shareholder). Prepare the Trial Balance. Use May 31 as its report date. (Hint: Accounts must be listed in financial statement order: Assets first, followed by liabilities, equity, revenues and expenses.) Answer is complete but not entirely correct. SPADE COMPANY Trial Balance May 31 Debit Credit Cash $ 18.250 X Equipment 10,092 Supplies 529 Accounts receivable 2,244 Accounts payable $ 0 Dividends 1,100 Common stock 18,250 Services revenue 6,023 Rent expense Totals $ 32,730 $ 24,273 OOOO 515

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing The Art and Science of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones

13th Canadian edition

133405508, 978-0133405507

More Books

Students also viewed these Accounting questions

Question

LO 28-3 How does cognitive development proceed during childhood?

Answered: 1 week ago