Transactions for Ivanhoe Company for the month of June are presented below. June 1 Issues common stock to investors in exchange for $5,830 cash. 2 Buys equipment on account for $1,550. 3 Pays $560 to landlord for June rent. 12 Sends Wil Wheaton a bill for $510 after completing welding work. Journalize the transactions.

Question

Nathalie Roth

Business

1 May, 03:41

Transactions for Ivanhoe Company for the month of June are presented below. June 1 Issues common stock to investors in exchange for $5,830 cash. 2 Buys equipment on account for $1,550. 3 Pays $560 to landlord for June rent. 12 Sends Wil Wheaton a bill for $510 after completing welding work. Journalize the transactions.

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Briley · Answer 1

The Journal entries are as follows:

(a) On June 1,

Cash A/c Dr. $5,830

To common stock $5,830

(To record the issue of common stock for cash)

(b) On June 2,

Equipment A/c Dr. $1,550

To accounts payable $1,550

(To record the purchase of equipment on account)

(c) On June 3,

Rent expense A/c Dr. $560

To cash $560

(To record the rent expense)

(d) On June 12,

Accounts receivable A/c Dr. $510

To Welding service revenue $510

(To record the welding service revenue)