Pet Salon Ltd. incurred the following selected transactions during the month of March:

Mar. 1Paid monthly rent, $1,000.

3 Performed pet grooming services for $740 on account.

5 Sold pet grooming products for $1,250 cash. (Hint: Use the Sales account for sales of pet products.)

8 Purchased additional grooming equipment for $700. The company paid cash of $70 and the balance was financed by a short-term bank loan.

12 Received $250 in payment from one of the customers for whom pet grooming services were performed on March 3.

15 Paid salaries to employees of $525.

16 Purchased $72 of supplies on account.

20 Paid $229 to repair grooming equipment.

22 Sold pet grooming products for $2,000 on account.

26 Paid balance owing for purchase of grooming equipment on March 8.

28 Received $500 from a customer in advance to provide pet grooming services at a dog show to be held next month.

31 Declared and paid $150 of dividends to shareholders.

Instructions

(a) For each transaction, indicate

(1) The basic type of account debited or credited (asset, liability, shareholders' equity);

(2) The specific account debited or credited; and

(3) Whether the specific account is increased or decreased to record this transaction. Use the following format, in which the first one has been done for you as an example:

(b) Identify the normal balances for each of the accounts identified in part (a).

Transcribed Image Text:

Account Debited Account Credited Transaction Basic TypeSpecific Effect Basic ScificEffect Type Account AssetsCash Decrease Account Mar Shareholders' Rent Expense In equity