E&Z Reader was founded in January 2014 to provide text reading and recording services.

Selected transactions for E&Z Reader's first month of business are as follows:

a. Issued shares to investors for $50,000 cash.

b. Billed customers $10,500 for services performed in January.

c. Purchased car for $24,500 for use in the business. Paid in cash.

d. Purchased $2,400 of supplies on account.

e. Received $7,500 cash from customers billed in transaction (b).

f. Used $1,500 in utilities, which will be paid in February.

g. Paid employees $3,500 cash for work done in January.

h. Paid $1,200 cash toward supplies purchased in transaction (d).

Required

For each transaction, complete the following:

1. Give the name of the account being debited or credited.

2. Give the basic account type (A, L, SE, R, E).

3. Indicate whether the account is increased (+) or decreased (-) due to the transaction.

4. Indicate whether the account normally holds a debit or credit balance.

Transaction (a) has been given as an example.

Transcribed Image Text:

Debit Side of Journal Entry Credit Side of Journal Entry Normal Balance Direction of Change Normal Account Account Account Type Direction Type Account of Change Name Name Balance Contributed Capital (a) Cash Debit SE Credit