Selected transactions for L. Takemoto, an interior decorating
firm, in its first month of business, are shown below
Jan. 2 | Stockholders invested $15,000 cash in the business in exchange for common stock. | |
3 | Purchased used car for $8,200 cash for use in the business. | |
9 | Purchased supplies on account for $500. | |
11 | Billed customers $1,800 for services performed. | |
16 | Paid $200 cash for advertising. | |
20 | Received $780 cash from customers billed on January 11. | |
23 | Paid creditor $300 cash on balance owed. | |
28 | Declared and paid a $500 cash dividend. |
For each transaction indicate the following.
(a) | The basic type of account debited and credited (Asset, Liability, Stockholders’ Equity). | |
(b) | The specific account debited and credited (Cash, Rent Expense, Service Revenue, etc.). | |
(c) | Whether the specific account is increased or decreased. | |
(d) | The normal balance of the specific account. |
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