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E&Z Reader was founded in January to provide text reading and recording services. Selected transactions for E&Z Reader's first month of business are as follows:
E&Z Reader was founded in January to provide text reading and recording services. Selected transactions for E&Z Reader's first month of business are as follows: a. Issued shares to investors for $55,000 cash. b. Billed customers $11,500 for services performed in January. c. Purchased car for $27,000 for use in the business; paid in cash. d. Purchased $2,900 of supplies on account. e. Received $8,000 cash from customers billed in transaction (b). f. Used $1,750 in utilities, which will be paid in February. g. Paid employees $4,500 cash for work done in January. h. Paid $1,450 cash toward supplies purchased in transaction (d). Required: For each transaction, give (a) the name of the account being debited or credited, (b) the basic account type (A, L, SE, R, E), (c) whether the account is increased (+) or decreased (-) due to the transaction, and (d) whether the account normally holds a debit or credit balance. Transaction (a) has been given as an example. a. Cash b. C. d. e. f. g. h. Debit Side of Journal Entry Account Account Name A Direction of Change + Normal Balance Debit Credit Side of Journal Entry Account Type Account Name Contributed capital SE Direction of Change + Normal Balance Credit
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