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Identify debits, credits, and normal balances.

Help identify debits, credits, and normal balances.

E2-1 H. Burns, Inc.

Account Debited Account Credited

Date Basic Type Specific Amount Effect Normal Balance Basic Type Specific Amount Effect Normal Balance

Jan. 2 Asset Cash Increase Debit Stockholders Equity Common Stock Increase Credit
Jan. 3
Jan. 9
Jan. 11
Jan. 16
Jan. 16
Jan. 20
Jan. 23
Jan. 28

Jan. 2 Invested $15,000 cash in business in exchange for common stock.
3 Purchased used car for $4000 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, liabilitys, stockholders equity).
(B) The specific amount debited and credited (cash, rent, expense, service revenue, etc.).
(C) Whether the specific amount is increased or decreased.
(D) The normal balance of specific account.

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E2-1 H. Burns, Inc.

Account Debited Account Credited

Date Basic Type Specific Amount Effect Normal Balance Basic Type Specific Amount Effect Normal Balance

Jan. 2 Asset Cash Increase Debit Stockholders Equity Common Stock Increase Credit
Jan. 3 Asset Car Increase Debit Asset Cash Decrease Debit
Jan. 9 Asset Supplies Increase Debit Liability Accounts ...

Solution Summary

This solution is comprised of the answer identifying debits, credits, and normal balances.

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