Transactions for Jayne Company for the month of June are presented below. June 1 Issues common stock to investors in exchange for $5,000 cash. 2 Buys equipment on account for $1,100. 3 Pays $740 to landlord for June rent. 12 Sends Wil Wheaton a bill for $700 after completing welding work. Identify the accounts to be debited and credited for each transaction.

Question

Mark Singleton

Business

31 December, 19:25

Transactions for Jayne Company for the month of June are presented below. June 1 Issues common stock to investors in exchange for $5,000 cash. 2 Buys equipment on account for $1,100. 3 Pays $740 to landlord for June rent. 12 Sends Wil Wheaton a bill for $700 after completing welding work. Identify the accounts to be debited and credited for each transaction.

+4

Answers (1)

Know the Answer?

Chan · Answer 1

Account Debit ($) Credit ($)

June 1:

cash 5,000

common stock Issue 5000

June 2:

Equipment 1,100

Account payable 1,100

June 3:

Rent Expense 740

Cash 740

June 12:

Service receivable 700

Service Revenue 700

Explanation:

Given dа ta:

June 1: Common stock to investors in exchange for $5,000 cash

June 2: Buys equipment on account for $1,100

June 3; pays $740 to landlord for June rent

June 12:Sends Wil Wheaton a bill for $700

Solution:

Account Debit ($) Credit ($)

June 1:

cash 5,000

common stock Issue 5000

June 2:

Equipment 1,100

Account payable 1,100

June 3:

Rent Expense 740

Cash 740

June 12:

Service receivable 700

Service Revenue 700