Jan.

2 Invested $15,000 cash in business in

exchange for common stock – Liability
3 Purchased used car for $4,000 cash for use in
business. Asset

9 Purchased supplies on account for $500 – Asset

11 Billed customers $1,800 for services performed
– Asset
16 Paid $200 cash for advertising – Liability
20 Received $700 cash from customers billed on
January 11 – Asset
23 Paid creditor $300 cash on balance owed –
Liability
28 Declared and paid a $1,000 cash dividend
Asset

Account Debited Account Credited

Specific Normal Specific

Date Basic Type Account Effect Balance Basic Type account
common
2-Jan Asset Cash Increase debit Stakeholders Equity stock
stockhold
3 Asset Cash Increase debit Expense ers equity
stockhold
9 Asset AP Increase debit Expense ers equity
retained
11 Asset AR decrease credit Stakeholders Equity earnings
16 Liability Cash Increase debit
retained
20 Asset Cash Increase debit Stakeholders Equity earnings
23 Liability Expense Increase debit
28 Asset dividend Increase debit Stakeholders Equity divends
 Normal
Effect Balance

increase credit

Decrease debit

Decrease debit

increase credit

increase credit

increase credit