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Exercises for Chapter One E1-5 Dichl Cleaners has the following balance sheet items. Accounts payable, Accounts receivable, Cash, Notes payable, Equipment, Salaries and wages payable, Supplies, Owner's capital Instructions Classify each item as an asset, liability, or owner's equity. E1-6 Selected transactions for Green Valley Lawn Care Company are listed below. 1. Made cash investment to start business. 2. Paid monthly rent 3. Purchased equipment on account. 4. Billed customers for services performed 5. Withdrew cash for owner's personal use 6. Received cash from customers billed in (4). 7. Incurred advertising expense on account 8. Purchased additional equipment for cash. 9. Received cash from customers when service was performed Instructions List the numbers of the above transactions and descnbe the effect of each transaction on assets, liabilities, and owner's equity. For example, the first answer is (1) Increase in assets and increase in owner's equity. Exercise for Chapter Two Selected transactions for A. Mane, an interior decorator, in her first month of business, are as follows Jan. 2 Invested $10,000 cash in business. 3 Purchased used car for $3,000 cash for use in business 9 Purchased supplies on account for $500 11 Billed customers $2,400 for services performed 16 Paid $350 cash for advertising 20 Received $700 cash from customers billed on January 11 23 Paid creditor $300 cash on balance owed. 28 Withdrew S1,000 cash for personal use by owner. Instructions For each transaction, indicate the following (a) The basic type of account debited and credited (asset, liability, owner's 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