an. 2 Invested $15,000 cash in the business in exchange for common stock. 3 Purc

Question

an. 2 Invested $15,000 cash in the business in exchange for common stock. 3 Purchased used car for $7,000 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 $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. For each transaction, indicate the following. (a) The basic type of account debited and credited (asset, liability, stockholders

Explanation / Answer

(b) The specific account debited and credited (cash, rent expense, service revenue, etc.). Cash   Debit Common stock Credit Property, plant and equipment Debit Cash   Credit Supplies Debit Account payable- creditors Credit Account receivable - debtors Debit Service revenue Credit Advertising expense Debit Cash Credit J Cash Debit Account receivable - debtors Credit Jan 23 Account payable- creditors Debit Cash Credit Jan 28 Dividend Debit Cash Credit (c) Whether the specific account is increased or decreased. Jan 02 Cash   Increased Common stock Increased Jan 03 Property, plant and equipment Increased Cash   Decreased Jan 09 Supplies Increased Account payable- creditors Increased Jan 11 Account receivable - debtors Increased Service revenue Increased Jan 16 Advertising expense Increased Cash Decreased Jan 20 Cash Increased Account receivable - debtors Decreased Jan 23 Account payable- creditors Decreased Cash Decreased Jan 28 Dividend Increased Cash Decreased

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.