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Review the transactions and determine the accounts, the account types (use assets, liabilities, common stock, dividends, revenue, and expenses), if they increase/decrease and if they are DR/CR. List accounts in order they would be in the journal entry. Paid for advertising in the local paper Account #1 Account Type Increase/Decrease Debit/Credit Advertising expense Expense Increase Debit Account #2 Account Type Increase/Decrease Debit/Credit Cash Assets Decrease Credit Paid cash on account Account #1 Account Type Increase/Decrease Debit/Credit Account #2 Account Type Increase/Decrease Debit/Credit Paid for a one year insurance policy Account #1 Account Type Increase/Decrease Debit/Credit Account #2 Account Type Increase/Decrease Debit/Credit Paid cash for rent. Account #1 Account Type Increase/Decrease Debit/Credit Account #2 Account Type Increase/Decrease Debit/Credit Common stock was issued to stockholders for cash Account #1 Account Type Increase/Decrease Debit/Credit Account #2 Account Type Increase/Decrease Debit/Credit Record the following transactions as journal entries. Purchased office furniture for $7,000 on account Date Accounts and Explanation Debit Credit Nov. 3 7000 7000 Received $9,000 from selling shares of stock Date Accounts and Explanation Debit Credit Nov. 4 5000 9000 Earned $8,000 of services on account. $. Date Accounts and explanation Debit Credit Nov.5 8000 B000 Paid $7,000 cash for salaries Date Accounts and Explanation Debit Credit Nov. 5 7000 2000 Common stock was issued to stockholders for $7,000 Date Accounts and Explanation Debit Credit Nav, 5 2000 2000

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