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 done
Journalize the transactions.

Answer and Explanation:

The Journal entry is shown below:-

June 1

Cash Dr,                  $5000  

        To Common stock        $5000

(Being issue of common stock for cash is recorded)  

June 2

Equipment Dr,          $1100  

    To Accounts payable      $1100

(Being purchase of equipment on credit is recorded)  

June 3

Rent expense Dr,     $740  

       To Cash                       $740

(Being rent expense is recorded)  

June 12

Accounts receivable Dr,   $700  

       To Welding service revenue $700

(Being welding service revenue is recorded)