acc346 selected transactions for loving home an interior decorator corporation in it 492643

Selected transactions for Loving Home, an interior decorator corporation, in its first month of business, are as follows.

1. Issued stock to investors for $18,319 in cash.

2. Purchased used car for $9,902 cash for use in business.

3. Purchased supplies on account for $367.

4. Billed customers $5,017 for services performed.

5. Paid $254 cash for advertising start of the business.

6. Received $1,280 cash from customers billed in transaction (4).

7. Paid creditor $380 cash on account.

8. Paid dividends of $488 cash to stockholders.

Instructions:

a. For each transaction indicate (a) the basic type of account debited and credited (asset, liability, stockholders’ equity); (b) the specific account debited and credited (Cash, Rent Expense, Service Revenue, etc.); (c) whether the specific account is increased or decreased; and (d) the normal balance of the specific account. Use the folllowing format, in which transaction1 is given as an example.

b. Journalize the transactions. Do not provide explanations.