Textbook Problem

Rules 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.

	Increase	Decrease	Normal Balance
Balance sheet accounts:
Asset	A	B	Debit
Liability	C	Debit	D
Stockholders’ equity:
Common Stock	Credit	E	F
Retained Earnings	G	H	Credit
Dividends	Debit	Credit	1
Income statement accounts:
Revenue	J	K	Credit
Expense	L	Credit	Debit