Last Updated 17 Apr 2020

Linking Debit or Credit with Normal Balance

Category Credit
Essay type Research
Words 495 (1 page)
Views 247

QS 2-3 Linking debit or credit with normal balance C5 Indicate whether a debit or credit decreases the normal balance of each of the following accounts: Notes* *Assets = Liabilities + Owners Equity a. Office Supplies e. Salaries Expense i. Interest Revenue b. Repair Services Revenue f. Owner Capital j. Owner Withdrawals c. Interest Payable g. Prepaid Insurance k. Unearned Revenue d. Accounts Receivable h. Buildings l. Accounts Payable A. Office supplies are an asset and debit decreases the normal balance. B.

Repair services revenue is an asset and credit decreases the normal balance. C. Interest payable uses credit for decrease of normal balance. D. Accounts recievable is an asset and debit will decrease the normal balance. E. Salaries expense uses debit for decrease of normal balance. F. Owner Capital is an asset and credit decreases normal balance. G. Prepaid insurance uses debit for decrease of normal balance. H. Buildings are considered an asset and debit decreases normal balance. I. Interest Revenue uses credit for decrease of normal balance.

J. Owner Withdrawals may use credit for decrease of normal balance. K. Unearned Revenue uses credit for decrease of normal balance. L. Accounts payable uses debit for decrease of normal balance. QS 2-4 Identify whether a debit or credit yields the indicated change for each of the following accounts: *Notes* Assets: Debit to increase, credit to decrease; Liabilities & Equity: Credit to increase, debit to decrease; Income: Credit to increase, debit to decrease; Expenses: debit to increase, credit to decrease. a. To increase Store Equipment f.

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To decrease Unearned Revenue b. To increase Owner Withdrawals g. To decrease Prepaid Insurance c. To decrease Cash h. To increase Notes Payable d. To increase Utilities Expense i. To decrease Accounts Receivable e. To increase Fees Earned j. To increase Owner Capital a) Store equipment uses debit to increase. (asset) b) Owner withdrawals use debit to increase. (equity) c) Cash uses credit to decrease. (asset) d) Utilities expense use debit to increase. (expense) e) Fees earned uses credit to increase. (income) f) Unearned revenue uses debit to decrease. asset) g) Prepaid insurance uses credit to decrease. (asset) h) Notes payable uses credit to increase. (liability) i) Accounts receivable uses credit to decrease. (asset) j) Owner capital uses credit to increase. (equity) QS 2-5 *Identify whether the normal balances (in parentheses) assigned to the following accounts are* correct or incorrect. a. Office supplies (Debit) d. Wages Expense (Credit) g. Wages Payable b. Owner Withdrawals (Credit) e. Cash (Debit) (Credit) c. Fees Earned (Debit) f. Prepaid Insurance (Credit) h.

Building (Debit) Office supplies uses debit for a normal balance. (correct) Owner withdrawals does not use credit for a normal balance. (incorrect) Fee’s earned does not use debit for normal balance. (incorrect) Wages expense does not use credit for normal balance. (incorrect) Cash does use debit for normal balance. (correct) Prepaid insurance does not use credit for normal balance. (incorrect) Wages payable does use credit for normal balance. (correct) Building does use debit for normal balance. (correct)

Linking Debit or Credit with Normal Balance essay

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Linking Debit or Credit with Normal Balance. (2018, Feb 17). Retrieved from https://phdessay.com/linking-debit-or-credit-with-normal-balance/

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