Selected transactions for Front Room, an interior decorator corporation, in its first month of business, are as follows.

Exercise 3-7

1.		Issued stock to investors for $16,300 in cash.
2.		Purchased used car for $10,400 cash for use in business.
3.		Purchased supplies on account for $310.
4.		Billed customers $5,620 for services performed.
5.		Paid $300 cash for advertising start of the business.
6.		Received $1,460 cash from customers billed in transaction (4).
7.		Paid creditor $330 cash on account.
8.		Paid dividends of $320 cash to stockholders.

Warning

Don't show me this message again for the assignment

Ok Cancel

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

No.

Basic Type

Specific Account

Effect

Normal Balance

Basic Type

Specific Account

Effect

Normal Balance

Asset

Cash

Increase

Debit

Stockholders’ Equity

Common Stock

Increase

Credit

Warning

Don't show me this message again for the assignment

Ok Cancel

Show List of Accounts

Link to Text

Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
1.

2.

3.

4.

5.

6.

7.

8.

Warning

Don't show me this message again for the assignment

Ok Cancel

Show List of Accounts

Link to Text

9 years ago

Report issue

Front Room 100% Correct Guaranteed

NOT RATED

Purchase the answer to view it

front_room.xlsx