2-3A Identify the type of account and its normal debit or credit balance (LO2-3) Below is a list of typical accounts. Required: For each account, indicate (1) the type of account and (2) whether the normal account balance is a debit or credit. Normal Balance Accounts Type of Account (Debit or Credit) 1. Salaries Payable. 2. Common Stock 3. Prepaid Rent 4. Buildings 5. Utilities Expense 6. Equipment 7 Rent Expense 8. Notes Payable 9. Salaries Expense 10. Insurance Expense 11. Cash 12 Service Revenue Required information Problem 2-5A Analyze the impact of transactions on the accounting equation and record transactions (LO2-2, 2-4) (The following information applies to the questions displayed below] Jake owns a lawn maintenance company, and Luke owns a machine repair shop. For the month of July, the following transactions occurred. July Jake provides lown services to Luke's repair shop on account, $500. July 6 One of Joke's mowers, malfunctions. Luke provides repair services to Jake on account, $450. July 9 Luke pays $500 to Jake for lawn services provided on July 3. July 14 Luke borrows $600 from Jake by signing a note. July 16 Jake purchases advertising in a local newspaper for the remainder of July and pays cash, $110. July 20 Jake pays $450 to Luke for services provided on July 6. July 27 Luke performs repair services for other customers for cash, $800. July 30 Luke pays employee salaries for the month, $300. July 31 Luke pays $600 to Jake for money borrowed on July 14. Problem 2-5A Part 1 Check Required: 1. Record each transaction for Luke's Repair Shop. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first eccount field.) Required information Journal entry worksheet < 1 2 3 4 5 6 7 8 9 Jake provides lawn services to Luke's repair shop on account, $500. Note: Enter debits before credits. Date July 03 General Journal Debit Credit Record entry Clear entry View general journal Required information. Problem 2-5A Analyze the impact of transactions on the accounting equation and record transactions (LO2-2, 2-4) The following information applies to the questions displayed below.) Jake owns a lawn maintenance company, and Luke owns a machine repair shop. For the month of July, the following transactions occurred. July Jake provides lawn services to Luke's repair shop on account, $500. July 6 One of Jake's mowers malfunctions. Luke provides repair services to Jake on account, $450. July 9 Luke pays $500 to Jake for lain services provided on July 3. July 14 Luke borrows $600 from Jake by signing a note. July 18 Jake purchases advertising in a local newspaper for the remainder of July and pays cash, $110. July 20 Jake pays $450 to Luke for services provided on July 6. July 27 Luke performs repair services for other customers for cash, $800. July 30 Luke pays employee salaries for the month, $300. July 31 Luke pays $600 to Jake for money borrowed on July 14. Problem 2-5A Part 2 2. Using the format shown below, enter the impact of each transaction on the accounting equation for each company. (Decreases to account classifications should be entered as a negative.) C Required information 2. Using the format shown below, enter the impact of each transaction on the accounting equation for each company. (Decreases to account classifications should be entered as a negative.) JAKE'S LAWN MAINTENANCE COMPANY Assets July 03 $ 500 06 09 14 18 20 27 30 31 LUKE'S REPAIR SHOP Liabilities Stockholders' Equity Assets Liabilities Stockholders' Equity 0 S 500 S O $ 500 $ (500) Prov 223 $3 Next