Question

Transactions for Skysong Company for the month of May are presented below. Prepare journal entries for each of these 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.) May 1 B.D.Skysong invests $3,800 cash in exchange for common stock in a small welding corporation. 3 Buys equipment on account for $1,086. 13 Pays $410 to landlord for May rent. 21 Bills Noble Corp. $500 for welding work done. (Use Service Revenue account.)

Answer 1

Step-by-step explanation:

The journal entries are shown below:

May 1 - Cash A/c $3,800

To Common stock A/c $3,800

(Being stock is exchanged for cash)

May 3 - Equipment A/c Dr $1,086

To Account payable A/c $1,086

(Being equipment purchased in credit)

May 13 - Rent expense A/c Dr $410

To Cash A/c $410

May 21 - Accounts receivable A/c Dr $500

To Service Revenue A/c $500

(Being the completed work recorded)