Chapter 3, Problem 1SDP

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; K. Spade, Capital; K. Spade, Withdrawals; Fees Earned; and Rent Expense. Use the letters beside eachtransaction to identify entries. After recording the transactions, post them to T-accounts, which serve as the general ledger for this assignment. Determine the ending balance of each T-account.

The following transactions occurred at Chicken King Restaurant:   a.  Purchased new fryer equipment with a banknote b.  Paid wages from cash c.  Sales for the month in cash d.  Paid postage for a promotional mailing on account e.  Paid rent for the current month and also for next month out of cash f.  Paid utility expense g.  Sales to customers on account   REQUIRED: For each of the transactions, state which accounts are affected, state the normal balance for each account, and indicate whether the transaction is a debit or credit to that account.  Set up your answers in columns, as indicated below.                       Accounts Affected                              Normal Balance                       Debit or Credit   example ~ paid cash for office supplies   example:    z  cash                                                           debit                                                 credit                       office supplies                                            debit…

The following accounts are from Mookie the Beagle Concierge’s Chart of Account. For each account, identify Account Type and Financial Statement on which it appears. Account                                                          Account Type                         Financial Statement Sales Checking Account Receivable Rent& Lease Prepaid Expenses Prepaid Expenses: Supplies Office Supplies& Software Prepaid Expenses: Insurance Insurance: Liability Insurance Expense Undeposited Funds Account Payable VISA Credit Card Prepaid Insurance: Rent Interest Paid Contractors Legal & Professional Services Advertising & Marketing Meals & Entertainment Retained Earnings Owner’s Investment Owner Distributions Inventory Utilities