Indicate whether each of the following accounts normally has a debit or cresit balance.
a. common stock
b. retained earnings
c. certificate of deposit
d. interest expense
e. accounts receivable
f. interest revenue
g. insurance expense
h. interest payable
k. unearned revenue
l. operating expense
m. accumulated depreciation
n. accounts payable
o. office equipment
p. depreciation expense
q. service revenue
r. notes payable
s. notes receivable
u. utilities payable
v. consulting revenue
w. interest receivable
x. supplies expense
y. salaries expense
aa. salaries payable
cc. prepaid insurance
First the rules:
Assets have normal debit balances
Liabilities have normal credit balances
Equity accounts have normal credit balances
Revenue accounts have normal credit balances
Expense accounts have normal debit balances
a. common stock Equity accounts have normal credit balances
b. retained earnings Equity accounts have normal credit balances
c. certificate of deposit Assets have normal debit balances
d. interest expense Expense accounts have normal debit balances
e. accounts receivable Assets have normal ...
For 29 different accounts commonly used in business, the solution identifes the normal balance of each account.
Identify normal balances for listed accounts in the first group. Indicate whether debit or credit is required for the second group. Indicate agreement or disagreement in third group of accounts.
Indicate whether debit or credit decreases the normal balance of each of the following accounts:
office supplies-repair services revenue-interest payable-accounts receivable-salaries expenses-owner capital-prepaid insurance-buildings-interest revenue-owner withdrawals-unearned revenue-accounts payable.
Identify whether a debit or credit yields the indicated change for each of the following accounts:
to increase store equipment- to increase owner revenue- to increase cash- to increase utilities expense- to increase fees earned- to decrease unearned revenue-to decrease prepaid insurance-to decrease notes payable-to decrease accounts receivable-to decrease owner capital.
Identify whether the normal balances (in parentheses) assigned to the following accounts are correct or incorrect:
office supplies (debit) owner withdrawals (credit) fees earned (debit) wages expense (credit) cash (debit) prepaid insurance (credit) wages payable (credit) building (debit).