Question

Question 16 of 18 -76 View Policies Current Attempt in Progress Transactions for the Oleg Thorn Company for the month of June are presented below. June 1 2 3 12 Oleg Thorn invests $4.500 cash in a small welding business of which he is the sole proprietor Purchases equipment on account for $3.100. 5830 cash is paid to landlord for June rent Sends a bill to Johnsen for $300 after completing welding work done on account Journalize the transactions. (Credit account cities are automatically indented when amounts entered. Do not indent manually Record joumal entries in the order presented in the problem. I no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit Attempts of

Answer 1

Journal entries.

Date	Accounts	Debit	Credit
June 1	Cash	$ 4,600
	To Oleg Thorn capital		$ 4,600
June 2	Equipment	$ 3,100
	To Accounts payable		$ 3,100
June 3	Rent expense	$ 830
	To Cash		$ 830
June 12	Accounts receivable	$ 300
	To Service revenue		$ 300

SUMMARY:

Investing capital will increase cash in business. Purchasing equipment on account increases equipment as asset and increase liability as accounts payable. Paying rent expense is a business expense in which debit rent expense and credit cash. Billing customer for completing work will increase account receivable and revenue is credited.