Question
Selected transactions for M. Acosta, an interior decorator, in her first month of business, are as follows. Jan. 2Invested $10,000 cash in business.3Purchased used car
Selected transactions for M. Acosta, an interior decorator, in her first month of business, are as follows.
Jan. 2Invested $10,000 cash in business.3Purchased used car for $3,000 cash for use in business.9Purchased supplies on account for $600.11Billed customers $2,400 for services performed.16Paid $350 cash for advertising.20Received $900 cash from customers billed on January 11.23Paid creditor $300 cash on balance owed.28Withdrew $1,000 cash for personal use by owner.
For each transaction, indicate the following. January 2 transaction is given as an example.
(a)The basic type of account debited and credited.(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.
Account Debited
Account Credited
Transaction
(a)
Basic Type
(b)
Specific Account
(c)
Effect
(d)
Normal Balance
(a)
Basic Type
(b)
Specific Account
(c)
Effect
(d)
Normal Balance
Jan. 2Asset
Cash
Increase
Debit
Owner's EquityOwner's CapitalIncrease
Credit
3
Asset
Liability
Owner's Equity
Increase
Decrease
Debit
Credit
Asset
Liability
Owner's Equity
Increase
Decrease
Debit
Credit
9
Asset
Liability
Owner's Equity
Increase
Decrease
Debit
Credit
Asset
Liability
Owner's Equity
Increase
Decrease
Debit
Credit
11
Asset
Liability
Owner's Equity
Increase
Decrease
Debit
Credit
Asset
Liability
Owner's Equity
Increase
Decrease
Debit
Credit
16
Asset
Liability
Owner's Equity
Increase
Decrease
Debit
Credit
Asset
Liability
Owner's Equity
Increase
Decrease
Debit
Credit
20
Asset
Liability
Owner's Equity
Increase
Decrease
Debit
Credit
Asset
Liability
Owner's Equity
Increase
Decrease
Debit
Credit
23
Asset
Liability
Owner's Equity
Increase
Decrease
Debit
Credit
Asset
Liability
Owner's Equity
Increase
Decrease
Debit
Credit
28
Asset
Liability
Owner's Equity
Increase
Decrease
Debit
Credit
Asset
Liability
Owner's Equity
Increase
Decrease
Debit
Credit
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Accounting What the Numbers Mean
Authors: David Marshall, Wayne McManus, Daniel Viele
12th edition
007802529X, 1259969525, 978-1260565492
