Question

Current Attempt in Progress Transactions for Blossom Company for the month of June are presented below. June 1 Issues common stock to investors in exchange for $5,940 cash. 2 Buys equipment on account for $1,060. 3 Pays $590 to landlord for June rent. 12 Bills Wil Wheaton $810 for welding work done. Journalize the transactions. (If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are auto problem.) Date Account Titles and Explanation Debit Credit

Answer 1

Solution: Credit Debit $5,940 Date Accounts Titles and Explanation Jun-01 Cash Common stock (To record the issuence of common stock to investors in exchange of cash) $5,940 $1,060 Jun-02 Equipment Accounts payable (To record the purchase of equipment on account) $1,060 $590 Jun-03 Rent expenses Cash (To record the rent expenses) $590 $810 Jun-12 Accounts receivable Service revenue (To record the service revenue for welding work) $810