Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The transactions of Spade Company appear below. K. Spade, owner, invested $16,750 cash in the company. The company purchased supplies for $486 cash. The company

The transactions of Spade Company appear below.

  1. K. Spade, owner, invested $16,750 cash in the company.
  2. The company purchased supplies for $486 cash.
  3. The company purchased $9,263 of equipment on credit.
  4. The company received $1,977 cash for services provided to a customer.
  5. The company paid $9,263 cash to settle the payable for the equipment purchased in transaction c.
  6. The company billed a customer $3,551 for services provided.
  7. The company paid $525 cash for the monthly rent.
  8. The company collected $1,491 cash as partial payment for the account receivable created in transaction f.
  9. K. Spade withdrew $1,100 cash from the company for personal use.

Required:

  1. Prepare general journal entries to record the transactions of Spade Company by using the following accounts: Cash; Accounts Receivable; Supplies; Equipment; Accounts Payable; K. Spade, Capital; K. Spade, Withdrawals; Services Revenue; and Rent Expense.
  2. Post entries to T-accounts and the ending balances will be calculated.

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

Step: 3

blur-text-image

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 Cases An Interactive Learning Approach

Authors: Steven M Glover, Douglas F Prawitt

4th Edition

0132423502, 978-0132423502

More Books

Students also viewed these Accounting questions