Type of account debited and credited


Problem: H. Burns, Inc.   


Account Debited Account Credited




 



Date Basic Type Specific Amount Effect Normal Balance Basic Type Specific Amount Effect Normal Balance




 



Jan. 2 Asset Cash Increase Debit Stockholders Equity Common Stock Increase Credit
Jan. 3


 



Jan. 9


 



Jan. 11


 



Jan. 16


 



Jan. 16


 



Jan. 20


 



Jan. 23


 



Jan. 28


 




Jan. 2 Invested $15,000 cash in business in exchange for common stock.                   
       3 Purchased used car for $4000 cash for use in business.                   
       9 Purchased supplies on account for $500.                   
      11 Billed customers $1,800 for services performed.                   
      16 Paid $200 cash for advertising.                   
      20 Received $700 cash from customers billed on January 11.                   
      23 Paid creditor $300 cash on balance owed.                   
      28 Declared and paid a $1,000 cash dividend.                   
                       
Required to do:

For each transaction indicate the following:

(A) The basic type of account debited and credited (asset, liablilty, shtockholders equity).

(B) The specific amount debited and credited (cash, rent, expense, service revenue, etc.).

(C) Whether the specific amount is increased or decreased.

(D) The normal balance of specific account.

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Finance Basics: Type of account debited and credited
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