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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

DEBIT AND CREDIT ANALYSIS Complete the following statements using either “debit” or “credit”:

  1. (a) The asset account Prepaid Insurance is increased with a ________.
  2. (b) The owner’s drawing account is increased with a ________.
  3. (c) The asset account Accounts Receivable is decreased with a ________.
  4. (d) The liability account Accounts Payable is decreased with a ________.
  5. (e) The owner’s capital account is increased with a ________.
  6. (f) The revenue account Professional Fees is increased with a ________.
  7. (g) The expense account Repair Expense is increased with a ________.
  8. (h) The asset account Cash is decreased with a ________.
  9. (i) The asset account Delivery Equipment is decreased with a ________.

To determine

Complete the given statements using either “debit” or “credit”.

Explanation

Normal balance:

Normal balance refers to the excess of amount on one side, over the amount on the other side of 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.

Types of accountNormal balance
AssetsDebit
LiabilitiesCredit
CapitalCredit
RevenueCredit
ExpenseDebit
DrawingsDebit

Table (1)

Debit:

In an accounting term debit refers to the left side of an account. The term debit can be denoted by (Dr.). The amounts which are recorded on the left side of the account are known as debiting.

Credit:

In an accounting term credit refers to the right side of an account. The term credit can be denoted as (Cr.). The amounts which are recorded on the right side of the account are known as crediting...

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