12.5 2 E3-21 (Static) Determining the Effects of Various Transactions [LO 3-3, LO 3-5] EZ Reader was founded in January to provide text reading and recording services. Selected transactions for EZ Reader's first month of business are as follows: points eBook References a. Issued common stock to investors for $50,000 cash. b. Billed customers $10,500 for services performed in January. c. Purchased equipment for $24,500 for use in the business. Paid in cash. d. Purchased and received $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: 1. For each transaction, give (1) the name of the account being debited or credited, (2) the basic account type (Asset, Liability, Stockholders' Equity, Retained Earnings, Expense), (3) whether the account is increased (+) or decreased (-) due to the transaction, and (4) whether the account normally holds a debit or credit balance. Transaction (a) has been given as an example. 2-a. Calculate the company's preliminary net income. 2-b. Calculate the company's net profit margin. Complete this question by entering your answers in the tabs below. Req 1 Req 2a Req 2b For each transaction, give (1) the name of the account being debited or credited, (2) the basic account type (Asset, Liability, Stockholders' Equity, Retained Earnings, Expense), (3) whether the account is increased (+) or decreased (-) due to the transaction, and (4) whether the account normally holds a debit or credit balance. Transaction (a) has been given as an example. Debit Side of Journal Entry Credit Side of Journal Entry Direction Account Name Account Type of Change (a) Cash Asset + Normal Balance Debit Direction Account Name Common Stock Account Type Stockholders' Equity of Change + Normal Balance Credit (b) () (d) (e) (f) (g) (h) < Req 1 Req 2a > Show less Complete this question by entering your answers in the tabs below. Req 1 Req 2a Req 2b Calculate the company's preliminary net income. Preliminary Net Income < Req 1 Req 2b > Req 1 Complete this question by entering your answers in the tabs below. Req 1 Req 2a Req 2b Calculate the company's net profit margin. (Round your answer to 1 decimal place.) Net Profit Margin % < Req 2a Req 2b >