Tsunami, Inc., entered into the following transactions during one month of operations:
1. Purchased S3, 000 of computer equipment on account.
2. Issued $7,500 of common stock to investors in exchange for cash.
3. Purchased supplies for $300 in cash.
4. Billed customers $25,000 for services rendered.
5. Paid salaries of $3,500 to employees.
6. Paid dividends to stockholders in the amount of $1,000.
7. Received $5,000 cash in payment of services earned and billed in the previous month.
8. Paid cash for the purchase in #1.
9. Borrowed $50,000 from the bank.
a. Indicate the specific accounts affected by each transaction.
b. Indicate whether those accounts were increased or decreased.
c. Designate the normal balances for each of the specific accounts.

  • CreatedJuly 16, 2015
  • Files Included
Post your question