Question

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

Answer 1

Answer:

1 . Debit Asset , bank increase normal balance is Debit balance , Credit Equity stock increase , normal balance is credit balance

2 . Debit Asset , Vehicles , increase , normal balance is Debit balance . Credit Asset , Bank , decrease , normal balance is Debit balance

3 . Debit Expense , Supplies , increase , normal balance is Debit . Credit Liabilities , Accounts payable , increase , normal balance is credit balance .

4 . Debit Asset , Accounts receivable , increase , normal is balance Debit . Credit Income , Service rendered , increase , normal balance is Credit balance .

5 . Debit Expense , Advertising , increase , normal balance is Debit balance . Credit Asset , Bank , decrease , normal is balance Debit .

6 . Debit Asset , Bank , Increase , normal balance is Debit balance . Credit Asset , Accounts receivable , Decrease , Normal balance is Debit balance .

7 . Debit Liability, Accounts payable, decrease, normal  is balance credit balance . Credit Asset, Bank, Decrease, normal balance is Debit balance .

8 . Debit Equity , Dividends Paid , decrease , normal balance is credit balance .

Credit Asset , Bank , decrease , normal balance is Debit balance

Explanation: