In: Accounting
Transactions for the Tage oslo company for the month of June are presented below.Identify the accounts to be debited and credited for each transaction
June 1 Tage oslo invests $5,000 cash in a small welding business of which he is the sole proprietor
June 2 Purchases equipment on account for $2,400
June 3 $800 cash is paid to landlord for June rent
June 12 Sends a bill to J.Kronsnoble for $300 for welding work performed on account
Date | Account Title & Explanation | Debit$ | Credit$ |
June 1 | Cash A/C | 5,000 | |
To Common stock A/C | 5,000 | ||
(To record $5000 cash invest in exchange for shares) | |||
June 2 | Equipment A/C | 2,400 | |
To Accounts payable A/C | 2,400 | ||
(To record equipment purchase on account) | |||
June 3 | Rent Expense A/C | 800 | |
To Cash A/C | 800 | ||
(To record cash paid to landlord for cash) | |||
June 12 | Accounts Receivable A/C | 300 | |
To Welding Revenue A/C | 300 | ||
(To record J.K.bill after completed welding work done on account) |
Answer to the above question clearly shown in explanation option