Exercises CHAPTER 2 A list of accounts and their balances at a specific time Used to decrease the balance in an asset account A list of all of a company's accounts An accounting record where transactions are recorded in chronological (date) order (g) (h) () E2-3 Kobayashi Company has the following accounts: Identify type of account, financial statement, and normal balance. Explain normal balances. (LO 1) (1) Account (2) Financial Statement Type of Account (3) Normal Balance Cash Asset M. Kobayashi, Capital Accounts Payable Building Fees Earned Balance Sheet Debit Insurance Expense Interest Revenue M. Kobayashi, Drawings Notes Receivable Prepaid Insurance Rent Expense Supplies Hw Instructions (a) Complete the table. Identify (1) the type of account as asset, liability, or owner's equity (for owner's equity accounts, also identify if it is a capital, drawings, revenue, or expense account): (2) what financial statement it is presented on; and (3) the normal balance of the account. The first one has been done for you as an example. (b) Explain why the normal balance for each of the different types of accounts is either a debit or credit. Refer to the accounting equation in your explanation. Identifv accounts anc determine debits and (LO 1)C In the first month of business, Jakmak Interior Design Company had the following transactions E2-4 The owner, Jackie MacKenzie, invested $10,220 cash in the business. Paid $350 cash for advertising the launch of the business. Purchased supplies on account for $1,050. Purchased a used car for $8.770 cash, for use in the business. 13 Mar. 5 Billed customers $1,520 for services performed. Borrowed $10,880 from the bank and signed a note payable. 26 25 Received S1,140 cash from customers billed on March 13. 29 Paid for the supplies purchased on March 9. Received $800 cash from a customer for services to be performed in April. 31 30 Paid Jackie MacKenzie $1,720 cash for her personal use. Instructions For each transaction, indicate: (a) the basic type of account debited and credited (asset, liability, or owner's equity): (b) the specific account debited and credited (Cash, Rent Expense, Service Revenue, etc.); and (c) whether each account is increased (+) or decreased (-), and by what amount. Cse the following format to complete the exercise; the first one has been done for you as an example: Account Credited (c) Account Debited (b) (a) Basic Type Owner's (c) (b) Specific Account Cash (a) Basic Specific Effect +10,220 Account Effect Type J. MacKenzie, Capital Date +10,220 Mar. 5 Asset Equity Record transacti (LO 2) AP data in E2-4 for Jakmak Interior Design Company journalize the transactions. Prepare basic an credit analysis. ( for lune