Exercise 3-7 (Part Level Submission) Selected transactions for Front Room, an interior decorator corporation, in its first month of business, are as follows. 1. Issued stock to investors for $14,600 in cash 2. Purchased used car for $10,500 cash for use in business 3. Purchased supplies on account for $300. 4. Billed customers $5,380 for services performed. 5. Paid $200 cash for advertising start of the business. 6. Received $1,730 cash from customers billed in transaction (4) 7. Paid creditor $300 cash on account 8. Paid dividends of $390 cash to stockholders. (a) Z Your answer is partially correct. Try again For each transaction indicate the basic type of account debited and credited (asset ability, 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 Normal Basic Type Specific Account Effect Basic Type Specific Account Effect No Balance Balance Cash Stockholders' Equity Common Stock Credit 1. Asset Increase Debit Increase Equipme Debit TT Liability Accounts Receivable Asset Supplies Increas Accounts Receivable Increase Increase Debt CIT Asset Cash Decrease Debt Asset IT Cash :TIncrease Debit TT Asset ccounts Receivabl Accounts Payable Decrease Stockholders' Equity a Dividends a 1ncrease Debit a Asset a Cash a TDecrease a Debit a