Selected Transactions for Sweet Home, a Property Management Company, in Its

question 220

Essay

Selected transactions for Sweet Home, a property management company, in its first month of business, are as follows.
Jan. 2 Issued ordinary shares to investors for $15,000 cash.
3 Purchased used car for $4,000 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 Paid dividends of $2,000.
Instructions
For each transaction indicate the following.
(a) The basic type of account debited and credited (asset (A), liability (L), equity (E)).
(b) The specific account debited and credited (cash, rent expense, service revenue, etc.).
(c) Whether the specific account is increased (incr.) or decreased (decr).
(d) The normal balance of the specific account.
Use the following format, in which the January 2 transaction is given as an example.

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Definitions:

Stereotyping

Labeling people based on their membership in a group.

Negative Consequence

A result or effect of an action or condition that is harmful or undesirable.

Stereotype

A widely held but fixed and oversimplified image or idea of a particular type of person or thing.

Persuasive Definitions

Definitions that aim to sway opinion or affect attitudes by the way terms are described.