Question

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

June1 Issues common stock to investors in exchange for $4,200 cash.
June 2 Buys equipment on account for $1,600. 3 Pays $840 to landlord for June rent.
June 12 Bills Wil Wheaton $690 for welding work done.

Jurnalize the transaction.

Answer 1

June 1 Cash $4200 Dr

Common Stock $4200 Cr

June 2 Equipment $1600 Dr

Accounts Payables $1600 Cr

June 3 Prepaid Rent $840 Dr

Cash 840 Cr

June 12 Accounts Receivable $690 Dr

Service revenue $690 Cr

Step-by-step explanation:

June 1 Common stock of 4200 is issued in exchange of cash. Cash is received so it is deboted and the common stock is credited as equity increases.

June 2 Equipment is purchased on credit. The balance in equipment account has increased and as it is an asset, it will be debited when increase. It is purchased on credit so accounts payable is credit.

June3 The rent if for the month of june and is paid in advacne so it is a prepaid and an asset so it is debited as prepaid rent and cash is credited as rent is paid by casha nd cahs decreases.

June 12 The accounts receivable is billed which means that accounts receivable increases and are debited. Service was provided so service revenue is credited