Selected transactions for Home Place, an interior decorator corporation, in its first month of business, are as follows.

Selected transactions for Home Place, an interior decorator corporation, in its first month of business, are as follows.

1.		Issued stock to investors for $13,290 in cash.
2.		Purchased used car for $10,320 cash for use in business.
3.		Purchased supplies on account for $350.
4.		Billed customers $4,500 for services performed.
5.		Paid $270 cash for advertising start of the business.
6.		Received $1,970 cash from customers billed in transaction (4).
7.		Paid creditor $420 cash on account.
8.		Paid dividends of $410 cash to stockholders.

For each transaction indicate the basic type of account debited and credited (asset, liability, stockholders’ equity); the specific account debited and credited (Cash, Rent Expense, Service Revenue, etc.); whether the specific account is increased or decreased; and the normal balance of the specific account.

Account Debited

Account Credited

No.

Basic Type

Specific Account

Effect

Normal Balance

Basic Type

Specific Account

Effect

Normal Balance

1.

Asset

Cash

Increase

Debit

Stockholders’ Equity

Common Stock

Increase

Credit

2.

Stockholders’ Equity Asset Liability

Accounts Receivable Advertising Expense Equipment Supplies Accounts Payable Dividends Cash

Increase Decrease

Debit Credit

Stockholders’ Equity Liability Asset

Accounts Receivable Accounts Payable Cash Service Revenue

Increase Decrease

Credit Debit

3.

Stockholders’ Equity Liability Asset

Advertising Expense Equipment Accounts Receivable Supplies Accounts Payable Cash Dividends

Increase Decrease

Debit Credit

Liability Asset Stockholders’ Equity

Accounts Payable Cash Service Revenue Accounts Receivable

Increase Decrease

Debit Credit

4.

Liability Asset Stockholders’ Equity

Supplies Accounts Receivable Equipment Advertising Expense Accounts Payable Dividends Cash

Decrease Increase

Credit Debit

Liability Asset Stockholders’ Equity

Cash Service Revenue Accounts Receivable Accounts Payable

Decrease Increase

Debit Credit

5.

Stockholders’ Equity Liability Asset

Equipment Accounts Receivable Supplies Dividends Advertising Expense Accounts Payable Cash

Decrease Increase

Credit Debit

Stockholders’ Equity Liability Asset

Service Revenue Accounts Payable Accounts Receivable Cash

Decrease Increase

Credit Debit

6.

Stockholders’ Equity Asset Liability

Cash Supplies Accounts Receivable Advertising Expense Accounts Payable Dividends Equipment

Decrease Increase

Credit Debit

Liability Asset Stockholders’ Equity

Accounts Receivable Service Revenue Accounts Payable Cash

Increase Decrease

Debit Credit

7.

Stockholders’ Equity Liability Asset

Supplies Advertising Expense Dividends Accounts Payable Equipment Cash Accounts Receivable

Increase Decrease

Debit Credit

Asset Stockholders’ Equity Liability

Service Revenue Accounts Receivable Accounts Payable Cash

Increase Decrease

Credit Debit

8.

Stockholders’ Equity Liability Asset

Cash Dividends Equipment Supplies Accounts Receivable Advertising Expense Accounts Payable

Decrease Increase

Credit Debit

Liability Asset Stockholders’ Equity

Service Revenue Accounts Receivable Accounts Payable Cash

Decrease Increase

Credit Debit

Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)