E&Z Reader was founded in January 2017 to provide text reading and recording services. Selected transactions for E&Z Reader’s first month of business are as follows: 

a. Issued shares to investors for $50,000 cash

b. Billed customers $10,500 for services performed in January

c. Purchased car for $24,500 for use in the business; paid in cash d. Purchased $2,400 of supplies on account

e. Received $7,500 cash from customers billed in transaction (b) 

f. Used $1,500 in utilities, which will be paid in February

g. Paid employees $3,500 cash for work done in January

h. Paid $1,200 cash toward supplies purchased in transaction (d) 

Required: 

For each transaction, complete the following: 

1. Give the name of the account being debited or credited. 

2. Give the basic account type (A, L, SE, R, E). 

3. Indicate whether the account is increased (+) or decreased (–) due to the transaction. 

4. Indicate whether the account normally holds a debit or credit balance. 

Transaction (a) has been given as an example. 

Transcribed Image Text:

Debit Side of Journal Entry Account Name Account Direction of Normal Туре Change Balance (a) Cash A Debit Credit Side of Journal Entry Account Name Account Direction of Normal Туре Change Balance Contributed Capital SE Credit