ransactions for Pharoah Company for the month of June are presented below. June 1 Issues common stock to investors in exchange for $4,950 cash. 2 Buys equipment on account for $1,200. 3 Pays $600 to landlord for June rent. 12 Bills Wil Wheaton $730 for welding work done. Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 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.

Question

Business

Maci Howe

12 April, 11:47

ransactions for Pharoah Company for the month of June are presented below. June 1 Issues common stock to investors in exchange for $4,950 cash. 2 Buys equipment on account for $1,200. 3 Pays $600 to landlord for June rent. 12 Bills Wil Wheaton $730 for welding work done. Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 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.

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Kaylah Cox · Answer 1

The journal entries are shown below:

June 1

Cash A/c Dr $4,950

To Common stock A/c $4,950

(Being cash is exchanged for common stock)

June 2

Equipment A/c Dr $1,200

To Account payable A/c $1,200

(Being equipment is purchased on credit)

June 3

Rent expenses A/c Dr $600

To Cash A/c $600

(Being rent expenses paid for cash)

June 12

Account receivables A/c Dr $730

To Welding service revenue $730

(Being work done is recorded)