D. Reyes, Inc., an interior decorating firm
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I need some help figuring out the attachment. I attached the work book and the word file. I am to do E2-2 and E2-3 and J1 is mentioned so I attached. I have 5 other problems I was able to work out on my own.
Thanks
Selected transactions for D. Reyes, Inc., an interior decorating firm, in its first month of
business, are as follows.
Jan. 2 Invested $10,000 cash in the business in exchange for common stock.
3 Purchased used car for $4,000 cash for use in business.
9 Purchased supplies on account for $500.
11 Billed customers $1,800 for services performed.
16 Paid $200 cash for advertising.
20 Received $700 cash from customers billed on January 11.
23 Paid creditor $300 cash on balance owed.
28 Declared and paid a $1,000 cash dividend.
Instructions
For each transaction indicate the following.
(a) The basic type of account debited and credited (asset, liability, stockholders' 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.
Post journal entries to standard
form of account.
Use the following format, in which the January 2 transaction is given as an example.
Account Debited Account Credited
(a) (b) (c) (d) (a) (b) (c) (d)
Basic Specific Effect Normal Basic Specific Effect Normal
Date Type Account Balance Type Account Balance
Data for D. Reyes, Inc., interior decorating are presented in E2-2.
Instructions
Journalize the transactions using journal page J1. (You may omit explanations.)
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1) Exercise E2-2
Selected transactions for D. Reyes, Inc., an interior decorating firm, in its first month of
business, are as follows.
Jan. 2 Invested $10,000 cash in the business in exchange for common stock.
3 Purchased used car for $4,000 cash for use in business.
9 Purchased supplies on account for $500.
11 Billed customers $1,800 for services performed.
16 Paid $200 cash for advertising.
20 Received $700 cash from customers billed on January 11.
23 Paid creditor $300 cash on balance owed.
28 Declared and paid a $1,000 cash dividend.
Instructions
For each transaction indicate the following.
(a) The basic type of account debited and credited (asset, ...
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