Exercise 3-6 Selected transactions for Home Place, an interior decorator corporation, in its first month of business, are as follows 1. 2. 3. 4. 5. 6. 7. 8. Issued stock to investors for $13,910 in cash Purchased used car for $10,090 cash for use in business Purchased supplies on account for $340 Billed customers $5,000 for services performed Paid $270 cash for advertising start of the business Received $1,290 cash from customers billed in transaction (4) Paid creditor $340 cash on account Paid dividends of $390 cash to stockholders For each transaction indicate the basic type of account debited and credited (asset, liability, stockholders' equity); the specific account debited and credited (Cash, Rent Expense, Service Revenue, etc.); whether the specific account is increased or decreased; and the normal balance of the specific account. Account Debited Account Credited Normal Balance Debit Normal Balance Credit No. Basic Type Effect Basic Type Stockholders' Equity Specific Account Specific Account Effect 1. Asset Cash Increase Common Stock Increase 4 6