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Question

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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

Explanation:

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

Answer:

TransactionGeneral JournalDebitCredit
bSupplies<br>Cash$500<br><br>$500
cEquipment<br>Accounts Payable$9,539<br><br>$9,539
dCash<br>Services Revenue$2,036<br><br>$2,036
eAccounts Payable<br>Cash$9,539<br><br>$9,539
fAccounts Receivable<br>Services Revenue$3,657<br><br>$3,657
gRent Expense<br>Cash$525<br><br>$525
hCash<br>Accounts Receivable$1,536<br><br>$1,536
iDividends<br>Cash$1,000<br><br>$1,000