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Identify normal debit & credit balances to list of accounts

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
i. cash
j. dividends
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
t. supplies
u. utilities payable
v. consulting revenue
w. interest receivable
x. supplies expense
y. salaries expense
z. equipment
aa. salaries payable
bb. land
cc. prepaid insurance

Solution Preview

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 ...

Solution Summary

For 29 different accounts commonly used in business, the solution identifes the normal balance of each account.

$2.19