Question

Brief Exercise 2-03 Transactions for the Marigold Company, which provides welding services, for the month of June are presented below. June 1 Marigold invests $4,900 cash in exchange for shares of common stock in a small welding business. 2 Purchases equipment on account for $1,460. 3 $770 cash is paid to landlord for June rent. 12 Bills P. Leonard $360 after completing welding work done on account. Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit >

Answer 1

Journalize the transaction -

Debit Credit 4900 Date Accounts Title & Explanation 1-Jun Cash To common stock (Being cash amount invested) 4900 1460 2-Jun Equipment To Notes payable (Being assets purchased on credit) 1460 770 3-Jun Rent To Cash (Being Rent paid) 770 360 12-Jun Account receivable/P. Leonard To Services performed (Being Services performed on account) 360

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