E2.2 (LO 1) Selected transactions for M. Acosta, an interior decorator, in her first month of business, are as follows. Jan. 2 Invested $10,000 cash in business. 3 Purchased used car for $3,000 cash for use in business. 9 Purchased supplies on account for $600. 11 Billed customers $2,400 for services performed. Paid $350 cash for advertising. 16 20 Received $900 cash from customers billed on January 11. 23 Paid creditor $300 cash on balance owed. 28 Withdrew $1,000 cash for personal use by owner. Instructions For each transaction, indicate the following. a. The basic type of account debited and credited (asset, liability, owner's equity). 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. Use the following format, in which the January 2 transaction is given as an example. Date Jan. 2 (a) Basic Type Asset Account Debited (b) Specific Account Cash (c) (d) Normal Balance Effect Increase Debit Account Credited (c) (b) Specific Account Effect (a) Basic Type Owner's Owner's Increase (d) Normal Balance Credit Identify debits, credits, and norma balances.

E2.2 (LO 1) Selected transactions for M. Acosta, an interior decorator, in her first month of business, are as follows. Jan. 2 Invested $10,000 cash in business. 3 Purchased used car for $3,000 cash for use in business. 9 Purchased supplies on account for $600. 11 Billed customers $2,400 for services performed. Paid $350 cash for advertising. 16 20 Received $900 cash from customers billed on January 11. 23 Paid creditor $300 cash on balance owed. 28 Withdrew $1,000 cash for personal use by owner. Instructions For each transaction, indicate the following. a. The basic type of account debited and credited (asset, liability, owner's equity). 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. Use the following format, in which the January 2 transaction is given as an example. Date Jan. 2 (a) Basic Type Asset Account Debited (b) Specific Account Cash (c) (d) Normal Balance Effect Increase Debit Account Credited (c) (b) Specific Account Effect (a) Basic Type Owner's Owner's Increase (d) Normal Balance Credit Identify debits, credits, and norma balances.

Name: How would I answer these questions correctly? E2.2 (LO 1) Selected tra
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: How would I answer these questions correctly? E2.2 (LO 1) Selected transactions for M. Acosta, an interior decorator, in her first month of business,are as follows.Jan. 2 Invested $10,000 cash in business.391683811Purchased used car for $3,000 cash f

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Explain the difference between inductive and deductive reasoning. Which method does Sherlock Holmes use? Which do people think he uses?
What do you understand by the term ias 38 and what are its criteria, advantages and disadvantage in real life situation
What does a deficiency judgment mean?
Explain the steps that apply your own sense of right and wrong to ethical dilemmas.
Is "true and fair view" the same as truth? Give reason for your answer.
What is a postaudit? What are its potential benefits?
What is simple interest?
Explain what is meant by political ideologies?
What is a goingconcern problem? What factors can contribute to such aproblem?
What are the assumptions, focus, and hypothesis of agency theory?