EBK FINANCIAL & MANAGERIAL ACCOUNTING
13th Edition
ISBN: 9780100545052
Author: WARREN
Publisher: YUZU
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Question
Chapter 2, Problem 2.1APE
To determine
Normal balance:
Normal balance refers to the excess of amount on one side, over the amount on the other side in an account. The excess amount of debit side over the credit side is shown as the normal debit balance. The excess amount of credit side over the debit side is shown as the normal credit balance.
Type of account | Normal balance |
Asset account | Debit balance |
Liability account | Credit balance |
Expense account | Debit balance |
Revenue account | Credit balance |
Dividend account | Debit balance |
Rules of Debit and Credit
Following rules are followed for debiting and crediting different accounts while they occur in business transactions:
- Debit, all increase in assets, expense, dividends, and owner’s drawing accounts, and all decrease in liabilities, revenues and owner’s capital accounts.
- Credit, all increase in liabilities, revenues, and owner’s capital accounts, and all decrease in assets, expenses, and owner’s drawing account.
To determine: Whether each of the following account is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries, and also to indicate its normal balance.
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Check out a sample textbook solutionStudents have asked these similar questions
Which of the following accounts has a normal debit balance?
A. Interest Revenue
B. Inventory
C. Sales
D. Accounts Payable
Give what is required, For the Classification: (Classify the account if it is current/noncurrent asset; current/non-current liabilities; equity; revenue or expense); For the normal balance (answer whether the normal balance is a debit or credit) For the presentation (Classify whether a balance sheet or an income statement account).
ACCOUNT
CLASSIFICATION
NORMAL BALANCE
PRESENTATION
OWNER’S DRAWING
PETTY CASH FUND
ACCOUNTS RECEIVABLE
NOTES RECEIVABLE (6 MOS.)
NOTES PAYABLE (2 YEARS)
INTEREST EXPENSE
BONDS PAYABLE
UNEARNED INCOME
ACCRUED EXPENSE
PREPAID EXPENSE
SUPPLIES
COST OF GOOD SOLDS
MERCHANDISE INVENTORY, END
MERCHANDISE INVENTORY, BEG
PATENT
GOODWILL
ADVANCES FROM CUSTOMERS
ADVANCES TO SUPPLIERS…
Which of the following accounts has a normal debit balance?
a.Accounts Payable
b.Sales
c.Interest Revenue
d.Merchandise Inventory
Chapter 2 Solutions
EBK FINANCIAL & MANAGERIAL ACCOUNTING
Ch. 2 - What is the difference between an account and a...Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - eCatalog Services Company performed services in...Ch. 2 - If the two totals of a trial balance are equal,...Ch. 2 - Assume that a trial balance is prepared with an...Ch. 2 - Prob. 7DQCh. 2 - Assume that Muscular Consulting erroneously...Ch. 2 - Assume that Sunshine Realty Co. borrowed 300,000...Ch. 2 - Checking accounts are one of the most common forms...
Ch. 2 - Prob. 2.1APECh. 2 - Rules of debit and credit and normal balances...Ch. 2 - Journal entry for asset purchase Prepare a journal...Ch. 2 - Journal entry for asset purchase Prepare a journal...Ch. 2 - Journal entry for fees earned Prepare a journal...Ch. 2 - Journal entry for fees earned Prepare a journal...Ch. 2 - Journal entry for dividends Prepare a journal...Ch. 2 - Journal entry for dividends Prepare a journal...Ch. 2 - Prob. 2.5APECh. 2 - Missing amount from an account On August 1, the...Ch. 2 - Prob. 2.6APECh. 2 - Trial balance errors For each of the following...Ch. 2 - Prob. 2.7APECh. 2 - Correcting entries The following errors took place...Ch. 2 - Prob. 2.8APECh. 2 - Prob. 2.8BPECh. 2 - Prob. 2.1EXCh. 2 - Chart of accounts Innerscape Interiors is owned...Ch. 2 - Chart of accounts LeadCo School is a newly...Ch. 2 - Rules of debit and credit The following table...Ch. 2 - Normal entries for accounts During the month,...Ch. 2 - Normal balances of accounts Identify each of the...Ch. 2 - Prob. 2.7EXCh. 2 - Prob. 2.8EXCh. 2 - Transactions and T accounts The following selected...Ch. 2 - Cash account balance During the month, Warwick Co....Ch. 2 - Account balances A. During February, 186,500 was...Ch. 2 - Retained earnings account balance As of January 1,...Ch. 2 - Identifying transactions Wyoming Tours Co. is a...Ch. 2 - Journal entries Based upon the T accounts in...Ch. 2 - Prob. 2.15EXCh. 2 - Prob. 2.16EXCh. 2 - Effect of errors on trial balance Indicate which...Ch. 2 - Errors in trial balance The following preliminary...Ch. 2 - Effect of errors on trial balance The following...Ch. 2 - Errors in trial balance Identify the errors in the...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Entries to correct errors The following errors...Ch. 2 - Prob. 2.23EXCh. 2 - Prob. 2.24EXCh. 2 - Entries into T accounts and trial balance Kimberly...Ch. 2 - Journal entries and trial balance On August 1,...Ch. 2 - Journal entries and trial balance On November 1,...Ch. 2 - Journal entries and trial balance Elite Realty...Ch. 2 - Corrected trial balance The Colby Group has the...Ch. 2 - Prob. 2.1BPRCh. 2 - Prob. 2.2BPRCh. 2 - Journal entries and trial balance On October 1,...Ch. 2 - Journal entries and trial balance Valley Realty...Ch. 2 - Prob. 2.5BPRCh. 2 - Prob. 1COPCh. 2 - Prob. 2.1CPCh. 2 - Prob. 2.2CPCh. 2 - Prob. 2.3CPCh. 2 - Prob. 2.5CP
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- Using the information contained in the accounts receivable ledger, the accountant can prepare _________. a. The general ledger balance b. The balance sheet c. The income statement d. A schedule of accounts receivable e. None of the abovearrow_forwardRules of debit and credit The following table summarizes the rules of debit and credit. For each of the items a through l, indicate whether the proper answer is a debit or a credit.arrow_forwardWill an accounts receivable balance increase with a debit or a credit entry? How do you know?arrow_forward
- The schedule of accounts payable lists each creditors account balance, and the total equals the _________________. a. Controlling account in the journal b. Accounts Payable account in the general ledger c. Accounts Receivable account in the general ledger d. Purchases account in the general ledger e. Sales account in the general ledgerarrow_forwardWhich of the following best describes the classification and normal balance of the accounts receivable account? Select one: a. Asset, Debit b. Liability, credit c. Revenue, credit d. Owner's equity, debitarrow_forwardFor each of the accounts listed below, indicate whether the typical or normal balance is a debit or credit. 1. Cash 2. Accounts Payable 3. Prepaid Expense 4. Deferred Revenue 5. Allowance for Sales Discounts and Returnsarrow_forward
- Identify the normal balance (debit [Dr] or credit [Cr]) for each of the following accounts: __________ Note Receivable. _______ Accounts Payable.arrow_forwardBelow is a list of common accounts. Required: Indicate whether the normal balance of each account is a debit or a credit. Accounts 1. Cash 2. Service revenue 3. Salaries expense 4. Accounts payable 5. Equipment 6. Retained earnings 7. Utilities expense 8. Accounts receivable 9. Dividends 10. Common stock Debit or Creditarrow_forwardRules of debit and credit and normal balances State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (C) both debit and credit entries. Also, indicate its normal balance. 3. Dividendsarrow_forward
- For each account, identify whether the normal balance is a debit or credit a.Notes Payable b.Dividends c.Service Revenue How do i figure this out?arrow_forwardThe total credit equal to the total of debit in ledger account is called: O a. Credit balance O b. Negative balance O C. No balance O d. Positive balancearrow_forwardThe following source document is used to support the transactions related to returns outwards to creditors/accounts payables: O a. Purchases invoices O b. Debit note O c. Credit note O d. Payable notearrow_forward
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