Jan. 2 Stockholders invested $15,000 cash in the business in exchange for common stock. 3 Purchased used car for $8,200 cash for use in the business. 9 Purchased supplies on account for $500. 11 Billed customers $1,800 for services performed. 16 Paid $200 cash for advertising. 20 Received $780 cash from customers billed on January 11. 23 Paid creditor $300 cash on balance owed. 28 Declared and paid a $500 cash dividend. For each transaction indicate the following. (a) The basic type of account debited and credited (Asset, Liability, Stockholders' Equity). (b) The specific account debited and credited (Cash, Rent Expense, Service Revenue, etc.). (c) Whether the specific account is increased or decreased. (d) The normal balance of the specific account.

The categorization is presented below:

For debited accounts

Transaction date Basic Type Specific account Effect Normal balance

Jan. 2 Asset Cash Increase $15,000

Jan. 3 Asset Car used Increase $8,200

Jan. 9 Asset Supplies Increase $500

Jan. 11 Asset Account receivable Increase $1,800

Jan. 16 Expense Advertisement Increase $200

Jan. 20 Asset Cash Increase $7,380

Jan. 23 Liability Account payable Decrease $200

Jan. 28 Asset Retained earnings Decrease $500

Jan. 28 Liability Dividend payable Decrease $500

For credited accounts

Transaction date Basic Type Specific account Effect Normal balance

Jan. 2 Asset Common stock Increase $15,000

Jan. 3 Asset Cash Decrease $6,800

Jan. 9 Asset Account payable Increase $500

Jan. 11 Asset Service revenue Increase $1,800

Jan. 16 Expense Cash Decrease $6,600

Jan. 20 Asset Account receivable Decrease $1,020

Jan. 23 Liability Cash Decrease $7,080

Jan. 28 Asset Dividend payable Increase $500

Jan. 28 Liability Cash Decrease $6,580

We determining the balances by adding the received or that transactions which increases the balance and deduct the paid amount or that transactions which decreases the balance