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Friday, 9 November 2012

The transactions of Dexter Company: a. Macy Dexter, owner, invested $11,500 cash in the company in exchange for common stock. b. The company purchased office supplies for $334 cash. c. The company purchased $6,360 of office equipment on credit. d. The company received $1,357 cash as fees for services provided to a customer. e. The company paid $6,360 cash to settle the payable for the office equipment purchased in transaction c.

The transactions of Dexter Company:

a. Macy Dexter, owner, invested $11,500 cash in the company in exchange for common stock.
b. The company purchased office supplies for $334 cash.
c. The company purchased $6,360 of office equipment on credit.
d. The company received $1,357 cash as fees for services provided to a customer.
e. The company paid $6,360 cash to settle the payable for the office equipment purchased in transaction c.
f. The company billed a customer $2,438 as fees for services provided.
g. The company paid $525 cash for the monthly rent.
h. The company collected $1,024 cash as partial payment for the account receivable created in transaction f.
i. The company paid $1,000 cash for dividends.

Prepare general journal entries to record the transactions above: 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. (Omit the "$" sign in your response.)

  General Journal Debit Credit
a.   Cash    
         Common stock    
       
b.   Office supplies    
         Cash    
       
c.   Office equipment    
         Accounts payable    
       
d.   Cash    
         Fees earned    
       
e.   Accounts payable    
         Cash    
       
f.   Accounts receivable    
         Fees earned    
       
g.   Rent expense    
         Cash    
       
h.   Cash    
         Accounts receivable    
       
i.   Dividends    
         Cash    


Post the above journal entries to T-accounts, which serves as the general ledger for this assignment. Determine the ending balance of each T-account. (Record the transactions in the given order. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Cash

 
  a.      b.  
  d.      e.  
  h.      g.  
        i.  


  Balance      
   

     

Accounts Receivable

 
  f.      h.  


  Balance      
   

     

Office Supplies

 
  b.       


  Balance      
   

     

Office Equipment

 
  c.       


  Balance      
  

     

Accounts Payable

 
  e.      c.  


       Balance     
         


Common Stock

 
      a.  


       Balance     
          


Dividends

 
  i.        


  Balance      
    

     

Fees Earned

 
      d.  
      f.  


    Balance     
         


Rent Expense

 
  g.        


  Balance      
   

     

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