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the transactions of spade company appear below.
a. k spade, owner, invested $17,250 cash in the company in exchange for common stock.
b. the company purchased supplies for $500 cash.
c. the company purchased $9,539 of equipment on credit.
d. the company received $2,036 cash for services provided to a customer.
e. the company paid $9,539 cash to settle the payable for the equipment purchased in transaction c.
f. the company billed a customer $3,657 for services provided.
g. the company paid $525 cash for the monthly rent.
h. the company collected $1,536 cash as partial payment for the account receivable created in transaction f.
i. the company paid a $1,000 cash dividend to the owner (sole shareholder).
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prepare general journal entries to record the transactions of spade company by using the following accounts: cash; accounts receivable; supplies; equipment; accounts payable; common stock; dividends; services revenue; and rent expense.
journal entry worksheet
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k. spade, owner, invested $17,250 cash in the company in exchange for common stock.
note: enter debits before credits.
transaction general journal debit credit
Step1: Record owner investment
Debit Cash $17,250; Credit Common Stock $17,250
Step2: Record supplies purchase
Debit Supplies $500; Credit Cash $500
Step3: Record equipment purchase on credit
Debit Equipment $9,539; Credit Accounts Payable $9,539
Step4: Record cash - received for services
Debit Cash $2,036; Credit Services Revenue $2,036
Step5: Record payment of payable
Debit Accounts Payable $9,539; Credit Cash $9,539
Step6: Record billing for services
Debit Accounts Receivable $3,657; Credit Services Revenue $3,657
Step7: Record rent payment
Debit Rent Expense $525; Credit Cash $525
Step8: Record collection on account
Debit Cash $1,536; Credit Accounts Receivable $1,536
Step9: Record dividend payment
Debit Dividends $1,000; Credit Cash $1,000
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| Transaction | General Journal | Debit | Credit |
|---|---|---|---|
| b | Supplies<br>Cash | $500<br> | <br>$500 |
| c | Equipment<br>Accounts Payable | $9,539<br> | <br>$9,539 |
| d | Cash<br>Services Revenue | $2,036<br> | <br>$2,036 |
| e | Accounts Payable<br>Cash | $9,539<br> | <br>$9,539 |
| f | Accounts Receivable<br>Services Revenue | $3,657<br> | <br>$3,657 |
| g | Rent Expense<br>Cash | $525<br> | <br>$525 |
| h | Cash<br>Accounts Receivable | $1,536<br> | <br>$1,536 |
| i | Dividends<br>Cash | $1,000<br> | <br>$1,000 |