Wood Maker Ltd. incurred the following selected transactions during the month of April:

Apr. 2Paid monthly rent, $800.

3 Sold signs to a customer for $1,000 on account.

5 Sold lawn furniture products for $1,250 cash.

6 Purchased additional woodworking equipment for $3,000. The company paid cash of $500 and the balance was due on account in 20 days.

12 Collected amount owed by customer for April 3 transaction.

15 Declared and paid $150 of dividends to shareholders.

16 Purchased lumber for $500 on account.

19 Paid $200 to repair equipment.

20 Sold picnic tables to an RV park for $2,000 on account.

25 Paid balance owing for purchase of woodworking equipment on April 6.

27 Received $500 from a customer in advance to provide custom signs to be delivered next month.

30 Paid salaries to employees of $1,800.

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 action Basic Type SpecificEffect Basic Specific Effect Account Type Account Apr. Shareholders' Rent Expense Increase Assets Cash Decrease equity