Question

Transactions for blue Company for the month of May are presented below. Prepare journal entries for each of these transactions. (You may omit explanations.)

May 1 B.D. blue invests $4,000 cash in exchange for common stock in a small welding corporation.
3 Buys equipment on account for $1,100.
13 Pays $400 to landlord for May rent.
21 Bills Noble Corp. $500 for welding work done.

Answer 1

The journal entries for Blue Company's transactions include issuing common stock, purchasing equipment, paying rent, and billing for services provided. These entries affect the company's assets, liabilities, and shareholder's equity.

Step-by-step explanation:

Journal Entries for Blue Company's Transactions

Below are the journal entries for the transactions of Blue Company for the month of May:

1. May 1: Issued common stock
2. May 3: Purchase of equipment
3. May 13: Rent payment
4. May 21: Billing for services

Note that explanations for these entries are omitted as per the request. Each entry affects different elements of the balance sheet and income statement, reflecting changes in assets, liabilities, and shareholder's equity due to business operations.