Question

Transactions for Crane Company for the month of June are presented below.

June 1 Issues common stock to investors in exchange for $4,960 cash.
2 Buys equipment on account for $1,720. 3 Pays $930 to landlord for June rent.
12 Sends Wil Wheaton a bill for $820 after completing welding work.

Required:
Journalize the transactions.

Answer 1

1. Dr Cash $4,960

Cr Common Stock Issues $4,960

2. Dr Equipment $1,720

Cr Accounts Payable $1,720

3. Dr Rent Expenses$930

Cr Cash $930

4. Dr Service receivables $820

Cr Service Revenue $820

Step-by-step explanation:

Preparation of the journal entries

1. Dr Cash $4,960

Cr Common Stock Issues $4,960

2. Dr Equipment $1,720

Cr Accounts Payable $1,720

3. Dr Rent Expenses$930

Cr Cash $930

4. Dr Service receivables $820

Cr Service Revenue $820