Rockford Enterprises had the following selected transactions.

1. Kris Rockford invested $5,000 cash in the business in exchange for common stock.

2. Paid office rent of $1,100.

3. Performed consulting services and billed a client $4,700.

oS . Declared and paid a $700 cash dividend.

Instructions

(a) Indicate the effect each transaction has on the accounting equation (Assets = Liabilities + Stockholders’ Equity), using plus and minus signs.

(b) Journalize each transaction. (Omit explanations.)

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.
Instructions For each transaction 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.
Use the following format, in which the January 2 transaction is given as an example.
Account Debited Account Credited

(a)

(b)

(c)

(d)

(a)

(b)

(c) (d)
Basic Specific Normal Basic Specific Normal Date Type Account Effect Balance Type Account Effect Balance Jan. 2 Asset Cash Increase Debit Stockholders’ Common Increase _ Credit Equity Stock