Classify the account type* and the appropriate financial statements for each of the following items. and For each indicate the effects of (a) a debit and (b) a credit on the accounts and (c) the normal balance of the account.

* Type means indicate whether the item is an asset, liability, revenue ... etc. with justification

Account	Account Type	Normal Balance	Debit	Credit	Financial Statement
Account Receivable
Note payable
Sales
Salaries and wages
Dividends

TOYOTA entered into the following transactions during August 2020:

Shareholders invested an additional 150,000 SAR in the business.

Purchased computers for 50,000 SAR from Extra on account

Received 8,000 cash from customer for car maintenance services.

Paid Extra for the computer purchased in( transaction 2).

Incurred advertising expenses for August of 1200 on account.

Purchase supplies for 100,000 cash.

Describe the effect of each transaction on assets, liability and owner’s equity. with justification

Answer rating: 100% (QA)

Account Account Type Normal Balance Debit Credit Financial Statement Accounts Receivable Asset Debit Increase Decrease Balance Sheet Note Payable Liab... View the full answer