The transactions of Spade Company:

a. Kacy Spade, the owner, invested $100,750 cash in the company.
b. The company purchased office supplies for $1,250 cash.
c. The company purchased $10,050 of office equipment on credit.
d. The company received $15,500 cash as fees for services provided to a customer.
e. The company paid $10,050 cash to settle the payable for the office equipment purchased in transaction c.
f. The company billed a customer $2,700 as fees for services provided.
g. The company paid $1,225 cash for the monthly rent.
h. The company collected $1,125 cash as partial payment for the account receivable created in transaction (f) Kacy Spade withdrew $10,000 cash from the company for personal use.

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.

KACY SPADE COMPANY TRIAL BALANCE AS AT 31st MAY 2016

DEBIT SIDE

Dr cash $94,850

Dr Account receivable 1575

Dr office supplies1,250

Dr Office equipment 10,050

Account payable 0

DrDividends10,000

DrRent expense1,225

Total$118,950

CREDIT SIDE

Cr Commonstock100,750

Cr Fees earned18,200

Totals$118,950

EXPLANATION

1.Cash

Dr a.100,750

Dr d.15,500

Dr h.1,125

Cr b.1,250

Cr e.10,050

Cr g.1,225

Cr i.10,000

The difference between both Debit and credit side =Balance 94,850

2.Accounts Receivable

Dr f.2,700 Cr b.1,125

The difference between both Debit and credit side Balance 1,575

3.Office Supplies

Dr a.1,250

Balance1,250

4. Office Equipment

Dr c.10,050

Balance 10,050

5.Accounts Payable

Dr e.10,050 Cr c.10,050

Balance 0

6.Common Stock

Cr a.100,750

Balance 100,750

7.Dividends

Dr i.10,000

Balance 10,000

8.Fees Earned

Cr d.15,500

Cr f.2,700

Balance 18,200

9. Rent Expense

Dr g.1,225

Balance 1,225

The below in the explanation the required journal entries as requested.

Explanation:

The journal entries required for Spade Company are as follows:

a Dr  Cash                    $100,750

  Cr Common stock                                $100,750

  Being capital invested in the business

b. Dr Office supplies     $1,250

   Cr Cash                                  $1,250

  Being purchase of office supplies

c.Dr Office equipment   $10,050

  Cr Accounts  payable               $10,050

  Being purchase of equipment on account

d. Dr Cash                       $15,500

   Cr Fees earned                               $15,500

    Being receipt of cash for services rendered

e.Dr Accounts  payable      $10,050

  Cr. Cash                                            $10,050

   Being payment for office equipment bought on account

f.Dr Accounts receivable     $2700

 Cr Fees earned                                   $2700

Being amount billed for services

g. Dr Rent Expense                          $1,225

   Cr Cash                                         $1225

 Being monthly rent paid

h. Dr  Cash                             $1,225

   Cr Accounts receivable                $1,225

   Being payment received from accounts receivable

i. Dr Dividends                       $10,000

 Cr  Cash                                               $10,000

Being withdrawal cash from the business.

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