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Business, 07.03.2020 05:45 bobtothemaxthe1st

Selected transactions for Front Room, an interior decorator corporation, in its first month of business, are as follows.

1. Issued stock to investors for $15,000 in cash

2. Purchased used car for $10,000 cash for use in business.

3. Purchased supplies on account for $300.

4. Billed customers $3,700 for services performed.

5. Paid $200 cash for advertising start of the business.

6. Received $1,100 cash from customers billed in transaction (4)

7. Paid creditor $300 cash on account

8. Paid dividends of $400 cash to stockholders.

For each transaction indicate the basic type of account debited and credited (asset ability, stockholders' equity); the specific account debited and credited (Cash Rent Expense, Service Revenue, etc.); whether the specific account is increased or decreased; and the normal balance of the specific account.

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