Currently started an accounting decision class, was able to solveall problems ex

Question

Currently started an accounting decision class, was able to solveall problems except this one which we did not go over...your helpwill be much appreciated.

Selected transactions for D. Reyes, Inc., an interiordecorating firm, in its first month of business, are asfollows.

Jan 2 Invested 10,000 cash in the business in exchange forcommon stock.
Jan 3 Purchased used car for 4,000 cash for use inbusiness
Jan 9 Purchased supplies on account for 500.
Jan11 Billed Customers 1800 for services performed.
Jan16 Paid 200 cash for advertising
Jan20 Received 700 cash from customers billed on January 11.
Jan23 Paid creditor 300 cash on balance owed.
Jan28 Declared and pad a 1000 cash dividend.

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.

Your Help will be Much Appreciated, ThanksAgain.

Your Help will be Much Appreciated, ThanksAgain.

Explanation / Answer

Jan 2 Invested 10,000 cash in the business inexchange for common stock. credited cashstockholders equity increased account $10,000 Jan 3 Purchased used car for 4,000 cash for use in businessdebited liability cash decreased account$6,000 Jan 9 Purchased supplies on account for 500. debited asset cash decreased account $5,500 Jan11 Billed Customers 1800 for services performed. credited service revenue has not been paid so account is thesame $5,500 Jan16 Paid 200 cash for advertising. debited advert. expensecash decreased account $5,300 Jan20 Received 700 cash from customers billed on January 11.credited service revenue cash increased account$6,000 Jan23 Paid creditor 300 cash on balance owed. debited balance payment cash decreased account$5,700 Jan28 Declared and pad a 1000 cash dividend. debited stockholders equity cash decreased account$4,700

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