What is the normal balance for the following accounts? (Highlight the answer) (For example: Cash Debit Credit) Accounts Receivable Debit Credit Accounts Payable Debit Credit Equipment Debit Credit Service Revenue Debit Credit Prepaid Insurance Debit Credit Expense Debit Credit
- What is the normal balance for the following accounts? (Highlight the answer)
(For example: Cash Debit Credit)
Accounts Payable Debit Credit
Equipment Debit Credit
Service Revenue Debit Credit
Prepaid Insurance Debit Credit
Expense Debit Credit
For each of the transactions in items 2 through 5, indicate the two (or more) effects on the
- Receive payment in cash for outstanding account receivable
Assets Increase Decrease No effect
Liability Increase Decrease No effect
Equity Increase Decrease No effect
- The company purchases land by paying half in cash and signing a note payable for
the other half
Assets Increase Decrease No effect
Liability Increase Decrease No effect
Equity Increase Decrease No effect
- Receive land from owner as investment in exchange for capital stock
Assets Increase Decrease No effect
Liability Increase Decrease No effect
Equity Increase Decrease No effect
- Pay next quarter rent in cash in advance
Assets Increase Decrease No effect
Liability Increase Decrease No effect
Equity Increase Decrease No effect
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