E2-2 TO E2-6

E2-3 Data for M. Acosta, interior decorator, are presented in E2.2. Instructions Journalize the transactions (You may omit explanations.)Q WRITING. Shea Jonas, a fellow student, is unclear about the basic steps in the recording process. Identify and briefly explain the steps in the order in which they occur. Identify and explain steps in recording process. Eg-s M. Gonzales has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis illustrated in the textbook. Indicate basic and debit-credit analysis. Aug. 1 Opens an office as a financial advisor, investing $9,000 in cash. 4 Pays insurance in advance for 6 months, $2,100 cash. 16 Receives $3,600 from clients for services performed. 27 Pays secretary $1,000 salary. g Using the data in BE2.5, journalize the transactions. (You may omit explanations.) R4 Selected transactions for M. Acosta, an interior decorator, in her first month of business, are as follows. Jan. 2 3 9 11 16 20 23 28 Invested $10,000 cash in business. Purchased used car for $3,000 cash for use in business. Purchased supplies on account for $600. Billed customers $2,400 for services performed. Paid $350 cash for advertising. Received $900 cash from customers billed on January 11. Paid creditor $300 cash on balance owed. 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, owner's 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) ((1) Basic Specic Normal Basic Specic Normal Date Type Account Effect Balance 'Iype Account E'ect Balance Jan. 2 Asset Cash Increase Debit Owner's Owner's Increase Credit Equity Capital