Selected transactions for L. Takemoto, an interior decorating firm, in its first month of business, are shown below

Selected transactions for L. Takemoto, an interior decorating firm, in its first month of business, are shown below

Jan. 2 Stockholders invested $15,000 cash in the business in exchange for common stock.

3 Purchased used car for $8,200 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 $780 cash from customers billed on January 11.

23 Paid creditor $300 cash on balance owed.

28 Declared and paid a $500 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.

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