Question

Exercise 2-2 Selected transactions for A. Mane, an interior decorator, in her first month of business, are as follows. List of Accounts Jan. 2 Invested $10,000 cash in business. Exercise 2-2 3 Purchased used car for $3,000 cash for use in business. Accounts Payable Accounts Receivable Advertising Expense Buildings 9 Purchased supplies on account for $500 11 Billed customers S2,400 for services performed. 16 Paid $350 cash for advertising. 20 Received $7D0 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. Furnitures and Fixtures Gasoline Expense Insurance Expense For each transaction, indicate the following. January 2 transaction is given as an example. Maintenance and Repairs Expense Miscellaneous Expense Mortgage Payable No Entry Notes Payable Owner's Capital Owner's Drawings Prepaid Insurance Prepaid Rent Rent Expense Rent Revenue Salaries and Wages Expense Salaries and Wages Payable Service Revenue (a) (b) (c) (d) The basic type of account debited and credited. The speclfic account debited and credited (Cash, Rent Dxpense, Service Revenue, etc.). Whether the specific account is increased or decreased. The normal balance of the specific account. Suppl es Expense Unearned Service Revenue Utilities Expense Vehicle Account Debited Account Credited Basic Type Speclflc Account Effect Normal Balance Basic Type Owner's Equity Speclflc Account Effect Normal Balance an. 2 Asset Owner's Capital Increase Credit

Answer 1

	Account debited				Account credited
Transaction	Basic type (a)	Specific account (b)	Effect (c )	Normal balance (d)	Basic type (a)	Specific account (b)	Effect (c )	Normal balance (d)
Jan. 2	Asset	Cash	Increase	Debit	Owners equity	Onwer's capital	Increase	Credit
Jan. 3	Asset	Vehicles	Increase	Debit	Asset	Cash	Decrease	Debit
Jan. 9	Asset	Suppies	Increase	Debit	Liability	Accounts payable	Increase	Credit
Jan. 11	Asset	Accounts receivable	Increase	Debit	Revenue	Service revenue	Increase	Credit
Jan. 16	Expense	Advertising expenses	Increase	Debit	Asset	Cash	Decrease	Debit
Jan. 20	Asset	Cash	Increase	Debit	Asset	Accounts receivable	Decrease	Debit
Jan. 23	Liability	Accounts payable	Decrease	Credit	Asset	Cash	Decrease	Debit
Jan. 28	Owners equity	Owners drawings	Increase	Debit	Asset	Cash	Decrease	Debit