Question

Transactions for the Splish Brothers Company for the month of June are presented as follows. June 1 Splish Brothers invests $5,900 cash in a small welding business of which he is the sole proprietor. 2 Purchases equipment on account for $3,400. 3$870 cash is paid to landlord for June rent. 12 Sends a bill to K, Johnsen for $300 after completing welding work done on account. Journalize the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for th account titles and enter 0 for the amounts.)

Answer 1

To journalize the Splish Brothers Company transactions for June, various accounts such as Cash, Equipment, Rent Expense, and Accounts Receivable are affected, with corresponding debits and credits reflecting the company's financial activities.

Step-by-step explanation:

The student's question involves journalizing transactions for a company, Splish Brothers Company, for the month of June. The transactions are as follows:

• June 1: The company receives a cash investment of $5,900.
• June 2: It purchases equipment on account for $3,400.
• June 3: It pays $870 in cash for June's rent.
• June 12: It bills a customer, K, Johnsen, $300 for welding work done on account.

To journalize these transactions, we would enter:

1. Debit Cash $5,900; Credit Owner's Capital $5,900 (the owner investing cash into the business).
2. Debit Equipment $3,400; Credit Accounts Payable $3,400 (purchasing equipment on account).
3. Debit Rent Expense $870; Credit Cash $870 (paying for June rent).
4. Debit Accounts Receivable $300; Credit Service Revenue $300 (billing for welding work done).

These entries reflect the increase in assets with debits and the increase in liabilities or owner's equity with credits, according to the double-entry accounting system.