Selected transactions for Acosta Decor, an interior design company, in its first month of business are as follows.

Jan. 2 Marie Acosta invested €10,000 cash in business in exchange for ordinary shares.

3 Purchased used car for €3,000 cash for use in business.

9 Purchased supplies on account for €600.

11 Billed customers €2,400 for services performed.

16 Paid €350 cash for advertising.

20 Received €900 cash from customers billed on January 11.

23 Paid creditor €300 cash on balance owed.

28 Declared and paid a €1,000 cash dividend.

Instructions

For each transaction, indicate the following.

a. The basic type of account debited and credited (asset, liability, 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.

Use the following format, in which the January 2 transaction is given as an example.

Transcribed Image Text:

Account Credited (b) Specific Account Debited (b) (c) (d) Normal Balance Debit (a) (d) (a) (c) Specific Basic Basic Normal Effect Type Date Type Account Account Effect Balance Jan. 2 Asset Cash Equity Share Capital- Increase Credit Increase Ordinary