Question

Transactions for the Monty Company, which provides welding services, for the month of June are presented below. June 1 Monthly invests $3, 910 cash in exchange for shares of common stock in a small welding business. 2 Purchases equipment on account for 340. 3 $760 cash is paid to landlord for June rent. 12 Bills P. Leonard $410 after completing welding work done on account. Journalize the transactions.

Answer 1

Transactions:

1. June 1 Monthly invests $3, 910 cash in exchange for shares of common stock in a small welding business.

2. June 2 Purchases equipment on account for 340.

3. June 3 $760 cash is paid to landlord for June rent.

4. June 12 Bills P. Leonard $410 after completing welding work done on account.

Journal Entries:

1.

June 1 Dr. Cr.

Investment $3,910

Cash $3,910

2.

June 2 Dr. Cr.

Equipment $340

Account Payable $340

3.

June 3 Dr. Cr.

Rent Expense $3,760

Cash $3,760

4.

June 12 Dr. Cr.

P. Leonard (Receivable) $410

Welding Service Revenue $410