Selected transactions for Expensive Designs Pty Ltd, an interior decorator, in its first month of business are
Question:
Selected transactions for Expensive Designs Pty Ltd, an interior decorator, in its first month of business are as follows:
1. Issued shares to investors for $10 000 in cash.
2. Purchased used car for $5000 cash for use in business.
3. Purchased supplies on account for $500.
4. Invoiced customers $1800 for services performed.
5. Paid $200 cash for advertising start of business.
6. Received $700 cash from customers invoiced in transaction (4).
7. Paid creditor $300 cash on account. 8. Paid dividends of $400 cash to shareholders.
Required
For each transaction, indicate (a) the basic type of account debited and credited (asset, liability, equity), (b) the specific account debited and credited (Cash, Rent Expense, Service Revenue etc.), (c) whether the specific account is increased or decreased, and (d) the normal balance of the specific account. Use the following format, in which transaction 1 is given as an example:
Step by Step Answer:
Expensive designs pvt ltd Account debited Account credited Transaction a Basic type b Specific accou...View the full answer
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong
