For each tranaction indicate the following: A. the basic type of account debited
ID: 2442538 • Letter: F
Question
For each tranaction 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.
Purchased used car for $4000 cash for use in business.
Purchased supplies on account for $500.
Billed customers $1800 for services performed.
Paid $200 cash for advertising.
Received $700 cash form customers billed on Jan. 11.
Paid creditor $300 cash on balance owed.
Declared and paid a $1000 cash dividend.
Explanation / Answer
.D The normal balance of the specific account
JOURNEL ENTRIES
CAR A/C Dr 4000
TO CASH A/C 4000
-----------------------------------------------
PURCHASE A/C Dr 500
TO CASH A/C 500
-------------------------------------------------
DEBTORS A/C Dr 1800
TO SALES 1800
----------------------------------------------
ADVERTISING A/C Dr 200
TO CASH 200
----------------------------------------------
CASH A/C Dr 700
TO DEBTORS 700
----------------------------------------------
CREDITORS A/C Dr 300
TO CASH 300
------------------------------------------------
DIVIDENDS A/C Dr 1000
TO CASH 1000
----------------------------------------
A) ASSET DEBIT LIABILITY CREDIT SHARE HOLDERS EQUITY CREDIT B) CASH DEBIT RENT EXPENCES DEBIT SERVICE REVENUE CREDIT C) Dr ASSETS A/C Cr TO CAR 4000 BYBALANCE C/D 4000 4000 4000 S.HOLDERS A/C TO CASH 1000 BY DEVIDENDS 1000 1000 1000 CASH A/C TO DEBTORS 1800 BY CAR 4000 TO DEBTORS 700 BY PURCHASED SUPLIESED ON A/C 500 BY ADVERTISING 200 BY CREDITOR 300 TO BALANCE C/D 3500 BY DEVIDENDS 1000 6000 6000 DEVIDENDS A/C TO S.HOLDERS 1000 BY BALANCE C/D 1000 1000 1000 DEBTORS A/C BY CASH 1800 BY CASH 700 TO BALANCE C/D 2500 2500 2500 CREDITORS A/C TO CASH 500 TO CASH 300 BY BALANCE C/D 800 800 800 ADVERTISING A/C TO CASH 200 BY BALANCE C/D 200 200 200
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