E2-2 - Account Debited Account Credited (a) (b) (c) (d) (a)...

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Selected transactions for D. Reyes, Inc., an interior decorating firm, in its first month of business, are as follows. Jan. 2 Invested $10,000 cash in business in exchange for common stock. 3 Purchased used car for $4,000 cash for use in business. 9 Purchased supplies on account for $500. 11 Billed customers $1,800 for services performed. 16 Paid $200 cash for advertising. 20 Received $700 cash from customers billed on January 11. 23 Paid creditor $300 cash on balance owed. 28 Declared and paid a $1,000 cash dividend. Instructions For each transaction indicate the following. (a) The basic type of account debited and credited (asset, liability, owner's 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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Unformatted text preview: Account Debited Account Credited (a) (b) (c) (d) (a) (b) (c) (d) Date Basic Type Specific Account Effect Normal Balance Basic Type Specific Account Effect Normal Balance Jan. 2 Asset Cash Increase Debit Stockholde r's Equity Common Stock Increase Credit 3 Asset Equipme nt Increase Debit Asset Cash Decrease Debit 9 Asset Supplies Increase Debit Liability Accounts Payable Increase Credit 11 Asset Account s Receiva ble Increase Debit Stockholde rs' Equity Service Revenue Increase Credit 16 Stockholders' Equity Advertis ing Expense Increase Debit Asset Cash Decrease Debit 20 Asset Cash Increase Debit Asset Accounts Receivable Decrease Debit 23 Liability Account s Payable Decrease Credit Asset Cash Decrease Debit 28 Stockholders' Equity Dividen ds Increase Debit Asset Cash Decrease Debit...
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E2-2 - Account Debited Account Credited (a) (b) (c) (d) (a)...

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