Selected transactions for D. Reyes, Inc. an clothing industry, in it's first month of business are as follows.
Jan. 2 Invested $10,000 cash in 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 $1,100 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
The solution provided Journal Entries for D Reyes Clothing Business for 1st month.