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 Receivable 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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