Selected transactions for Expensive Designs Pty Ltd, an interior decorator corporation, in its first month of business, are as follows.?
Issued share to investors for $10 000 in cash.
Purchased used car for $5 000 cash for use in business.
Purchased supplies on account for $500.
Invoiced customers $1 800 for services performed.
Paid $200 cash for advertising start of the business.
Received $700 cash from customers invoiced in transaction (4).
Paid creditor $300 cash.
Paid dividends of $400 cash to shareholders.
For each transaction indicate (a) the basic type of account debited and credited (asset, liability, equity); (b) the specific account debited and credited (cash at bank, rent expense, service revenue, etc.); (c) whether the specific account increases or decreases; and (d) the normal balance of the specific account.
1. Issued shares to investors for $10 000 in cash.