Linking Debit or Credit with Normal Balance Essay Example
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. 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