E2-2 Selected transactions for R. Sparks, an interior decorator, in her fi rst month of business, are as follows. Jan. 2 Invested $10,000 cash in business. 3 Purchased used car for $4,000 cash for use...

E2-2 Selected transactions for R. Sparks, an interior decorator, in her fi rst month of business, are as follows. Jan. 2 Invested $10,000 cash in business. 3 Purchased used car for $4,000 cash for use in business. 9 Purchased supplies on account for $500. 11 Billed customers $2,100 for services performed. 16 Paid $350 cash for advertising. 20 Received $700 cash from customers billed on January 11. 23 Paid creditor $300 cash on balance owed. 28 Withdrew $1,000 cash for personal use by owner. Instructions For each transaction, indicate the following. (a) The basic type of account debited and credited (asset, liability, owner’s equity). (b) The specifi c account debited and credited (Cash, Rent Expense, Service Revenue, etc.). (c) Whether the specifi c account is increased or decreased. (d) The normal balance of the specifi c account. Use the following format, in which the January 2 transaction is given as an example. Analyze statements about accounting and the recording process. (LO 1) Identify debits, credits, and normal balances. (LO 2) Account Debited Account Credited (a) (b) (c) (d) (a) (b) (c) (d) Basic Specifi c Normal Basic Specifi c Normal Date Type Account Effect Balance Type Account Effect Balance Jan. 2 Asset Cash Increase Debit Owner’s Owner’s Increase Credit Equity Capital