Question
E2-2 Selected transactions for R. Sparks, an interior decorator, in her fi rst month of business, are as follows. Jan. 2 Invested $10,000 cash in
E2-2 Selected transactions for R. Sparks, an interior decorator, in her fi rst month of business, are as follows. Jan. 2 Invested $10,000 cash in business. 3 Purchased used car for $4,000 cash for use in business. 9 Purchased supplies on account for $500. 11 Billed customers $2,100 for services performed. 16 Paid $350 cash for advertising. 20 Received $700 cash from customers billed on January 11. 23 Paid creditor $300 cash on balance owed. 28 Withdrew $1,000 cash for personal use by owner. Instructions For each transaction, indicate the following. (a) The basic type of account debited and credited (asset, liability, owners equity). (b) The specifi c account debited and credited (Cash, Rent Expense, Service Revenue, etc.). (c) Whether the specifi c account is increased or decreased. (d) The normal balance of the specifi c account. Use the following format, in which the January 2 transaction is given as an example
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