rief Exercise 2-2

Transactions for the Sheldon Cooper Company, which provides welding services, for the month of June are presented below.

June 1		Sheldon Cooper invests $4,000 cash in exchange for shares of common stock in a small welding business.
2		Purchases equipment on account for $1,200.
3		$800 cash is paid to landlord for June rent.
12		Bills P. Leonard $300 after completing welding work done on account.

Identify the accounts to be debited and credited for each transaction.

		Account Debited		Account Credited
June 1		InvestmentRent ExpenseAccounts ReceivableCommon StockService RevenueEquipmentCashRent RevenueDepreciation ExpenseAccounts Payable		Common StockEquipmentAccounts PayableRent ExpenseAccounts ReceivableCashService RevenueRent RevenueInvestmentDepreciation Expense
2		Accounts ReceivableCommon StockRent RevenueDepreciation ExpenseRent ExpenseEquipmentInvestmentService RevenueCashAccounts Payable		Rent ExpenseRent RevenueAccounts ReceivableService RevenueInvestmentEquipmentDepreciation ExpenseCashCommon StockAccounts Payable
3		Accounts ReceivableCashAccounts PayableCommon StockRent ExpenseService RevenueRent RevenueInvestmentDepreciation ExpenseEquipment		EquipmentCashDepreciation ExpenseService RevenueCommon StockRent ExpenseAccounts ReceivableRent RevenueAccounts PayableInvestment
12		Service RevenueCommon StockInvestmentCashDepreciation ExpenseRent RevenueEquipmentAccounts PayableRent ExpenseAccounts Receivable		CashService RevenueRent ExpenseInvestmentRent RevenueDepreciation ExpenseCommon StockEquipmentAccounts ReceivableAccounts Payable