WileyPLUS 7 Part Level Selected transactions for Front Room

WileyPLUS -7 (Part Level Selected transactions for Front Room, an inberior 1 1ssued stock to investors for $15,000 in cash. decorator oorporation, in ts frst month of business, are as follows Paid dividenos of $400 cash to stockholders

Solution

Accounts Debited No Basic Type Specific accounts Effect Normal balances Basic Type Specific accounts Effect Normal balances Amt 1 Asset Cash Increase Debit Stockholder equity Common stock Increase Credit $15,000 2 Asset Car Increase Debit Asset Cash Decrease Credit 10000 3 Asset Supplies Increase Debit Liabilities Accounts payable Increase Credit $300 4 Assets Accounts receivable Increase Debit Stockholder equity Retained Eranings Increase Credit $3,700 5 Stockholder equity Retained Eranings Decrease Debit Asset Cash Decrease Credit $200 6 Asset Cash Increase Debit Assets Accounts receivable Decrease Credit $1,100 7 Liabilities Accounts payable Decrease Debit Asset Cash Decrease Credit $300 8 Stockholder equity Retained Eranings Decrease Debit Asset Cash Decrease Credit $400