Question

Transactions for Blossom Company for the month of June are presented below June 1 Issues common stock to investors in exchange for $4,000 cash. 2 Buys equipment on account for $1,000 3 Pays $520 to landlord for June rent. 12 Bills Wil Wheaton $500 for welding work done. Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work

Answer 1

Date	Account titles and explanation	Debit	Credit
June 1	Cash	$4,000
	Common stock		$4,000
	[ To record the issue of common stock for cash ]
June 2	Equipment	$1,000
	Accounts payables		$1,000
	[ To record the purchase of equipment on account ]
June 3	Prepaid Rent	$520
	Cash		$520
	[ To record the prepayment of rent ]
June 12	Accounts receivables
	Service revenue	$500
	[ To record the revenue for service provided on account ]		$500