Question

Transactions for the Swifty Company, which provides welding services, for the month of June are presented below. June 1Swifty invests $4,250 cash in exchange for shares of common stock in a small welding business. 2Purchases equipment on account for $350. 3$830 cash is paid to landlord for June rent. 12Bills P. Leonard $410 after completing welding work done on account.

Answer 1

Answer:

1. June 1 Swifty invests $4,250 cash in exchange for shares of common stock in a small welding business.

2. June 2 Purchases equipment on account for $350.

3. June 3 $830 cash is paid to landlord for June rent.

4. June 12 Bills P. Leonard $410 after completing welding work done on account.

Journal Entries:

1.

June 1              Dr.      Cr.

Investment   $4,250

Cash                          $4,250

2.

June 2              Dr.      Cr.

Equipment     $350

Account Payable       $350

3.

June 3                Dr.        Cr.

Rent Expense   $830

Cash                               $830

4.

June 12                                Dr.        Cr.

P. Leonard (Receivable)     $410

Welding Service Revenue              $410