Question

Transactions for the Sheldon Cooper Company, which provides welding services, for the month of June are presented as follows. June 1 Sheldon Cooper invests $4,000 cash in exchange for shares of common stock in a small welding business. 2 Purchases equipment on account for $1,200. 3 $800 cash is paid to landlord for June rent. 12 Bills P. Leonard $300 after completing welding work done on account. Identify the accounts to be debited and credited for each transaction. Account Debited Account Credited June 1 select an account debited Cash select an account credited Common Stock 2 select an account debited Equipment select an account credited Accounts Payable 3 select an account debited Rent Expense select an account credited Cash 12 select an account debited select an account credited

Answer 1

June 01 - Invest cash for stock

Account Debited: Cash

Account Credited: Common Stock capital

June 02 - Equipment purchased

Account Debited: Equipment

Account Credited: Accounts Payable on account

June 03 - paid rent

Account Debited: Rent expense

Account Credited: Cash account

June 13 - Work done on account

Account Debited: Accounts receivable

Account Credited: Service revenue

Sheldon Cooper Company

Journal entries

Date Accounts title Debit Credit

1-Jun Cash account $4,000

Common Stock capital $4,000

2-Jun Equipment $1,200

Accounts payable $1,200

3-Jun Rent expenses $800

Cash account $800

12-Jun Accounts receivable $300

Service revenue $300