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.

1. Debit Asset, bank increase normal balance is Debit balance, Credit Equity stock increase, normal balance is credit balance

2. Debit Asset, Vehicles, increase, normal balance is Debit balance. Credit Asset, Bank, decrease, normal balance is Debit balance

3. Debit Expense, Supplies, increase, normal balance is Debit. Credit Liabilities, Accounts payable, increase, normal balance is credit balance.

4. Debit Asset, Accounts receivable, increase, normal is balance Debit. Credit Income, Service rendered, increase, normal balance is Credit balance.

5. Debit Expense, Advertising, increase, normal balance is Debit balance. Credit Asset, Bank, decrease, normal is balance Debit.

6. Debit Asset, Bank, Increase, normal balance is Debit balance. Credit Asset, Accounts receivable, Decrease, Normal balance is Debit balance.

7. Debit Liability, Accounts payable, decrease, normal is balance credit balance. Credit Asset, Bank, Decrease, normal balance is Debit balance.

8. Debit Equity, Dividends Paid, decrease, normal balance is credit balance.

Credit Asset, Bank, decrease, normal balance is Debit balance