Answer:
Transactions:
1. June 1 Monthly invests $4,000 cash in exchange for shares of common stock in a small welding business.
2. June 2 Purchases equipment on account for 1,200.
3. June 3 $800 cash is paid to landlord for June rent.
4. June 12 Bills P. Leonard $300 after completing welding work done on account.
Journal Entries:
1.
June 1 Dr. Cr.
Investment $4,000
Cash $4,000
2.
June 2 Dr. Cr.
Equipment $1,200
Account Payable $1,200
3.
June 3 Dr. Cr.
Rent Expense $800
Cash $800
4.
June 12 Dr. Cr.
P. Leonard (Receivable) $300
Welding Service Revenue $300
