Transactions for Jayne Company for the month of June are presented below. June 1 Issues common stock to investors in exchange for $5,000 cash. 2 Buys equipment on account for $1,100. 3 Pays $740 to landlord for June rent. 12 Sends Wil Wheaton a bill for $700 after completing welding work. Identify the accounts to be debited and credited for each transaction.

Account                               Debit($)               Credit($)

June 1:

cash                                      5,000

common stock Issue                                          5000

June 2:

Equipment                           1,100

Account payable                                                1,100

June 3:

Rent Expense                       740

Cash                                                                     740

June 12:

Service receivable                700

Service Revenue                                                 700

Explanation:

Given Data:

June 1: Common stock to investors in exchange for $5,000 cash

June 2: Buys equipment on account for $1,100

June 3; pays $740 to landlord for June rent

June 12:Sends Wil Wheaton a bill for $700

Solution:

Account                               Debit($)               Credit($)

June 1:

cash                                      5,000

common stock Issue                                          5000

June 2:

Equipment                           1,100

Account payable                                                1,100

June 3:

Rent Expense                       740

Cash                                                                     740

June 12:

Service receivable                700

Service Revenue                                                 700

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