Question

June 1 Sheldon Cooper invests $4,000 cash in exchange for shares of common stock in a small welding business. 2 Purchases equipment on account for $1,200. 3 $800 cash is paid to landlord for June rent. 12 Bills P. Leonard $300 after completing welding work done on account.

Answer 1

Answer:

Transactions:

1. June 1 Monthly invests $4,000 cash in exchange for shares of common stock in a small welding business.

2. June 2 Purchases equipment on account for 1,200.

3. June 3 $800 cash is paid to landlord for June rent.

4. June 12 Bills P. Leonard $300 after completing welding work done on account.

Journal Entries:

1.

June 1              Dr.      Cr.

Investment   $4,000

Cash                          $4,000

2.

June 2              Dr.      Cr.

Equipment     $1,200

Account Payable       $1,200

3.

June 3                Dr.        Cr.

Rent Expense   $800

Cash                               $800

4.

June 12                                Dr.        Cr.

P. Leonard (Receivable)     $300

Welding Service Revenue              $300