Identifying Journal Transactions
Not what you're looking for?
Selected transactions for D. Reyes, Inc., an interior decorating firm, in its first month of business, are as follows.
January 2: Invested $10,000 cash in the business in exchange for common stock.
3: Purchased a used car for $4,000 cash for use in the 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.
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.
Purchase this Solution
Solution Summary
This solution demonstrates how to construct transaction journal entries for the series of events presented in this case. The basic type of the account, the specific account type, the effect this transaction had on the account and the ending normal balance after the event, were all documented.
Solution Preview
Account Debited
(a) Basic type (b) Specific account (c) Effect (d) Normal balance
Jan-02 Asset Cash Increase Debit
Jan-03 Asset Vehicle Increase Debit
Jan-09 Asset Supplies Increase Debit
Jan-11 Asset Accounts ...
Purchase this Solution
Free BrainMass Quizzes
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Introduction to Finance
This quiz test introductory finance topics.