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

question 72

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:

Managerial Accounting Reports

Financial documents that provide detailed financial and operational information tailored to the needs of a company's management for decision making.

Relevance

The quality of information that makes it significant and useful for decision-making purposes.

Chief Management Accountant

A senior-level executive responsible for overseeing a company's management accounting, providing financial insights and strategies for decision-making.

Controller

A senior financial officer in a company responsible for overseeing accounting and financial reporting.