Question

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

June
1 Issues common stock to investors in exchange for $5,000 cash.
2 Buys equipment on account for $1,100.
3 Pays $740 to landlord for June rent.
12 Sends Wil Wheaton a bill for $700 after completing welding work.
Identify the accounts to be debited and credited for each transaction.
Account Debited Account Credited
june 1
june 2
june 3
june 12

Answer 1

June 1 , common stocks are issued

Dr Cash 5,000

Cr Common stock 5,000

June 2 , equipment purchased on account

Dr Equipment 1,100

Cr Accounts payable 1,100

June 3 , monthly rent paid

Dr Rent expense 740

Cr Cash 740

June 12, service revenue

Dr Accounts receivable 700

Cr Service revenue 700