Question

1. For the accounts listed below, identify the type of account (asset, liability, owner’s capital, owner’s drawing, revenue, or expense), the normal balance (debit or credit), and which financial statement you would find the account on (income statement, owner’s equity statement, or balance sheet).

		Type of Account	Normal Balance	Financial Statement
A	Cash
B	Accounts Payable
C	Rent Expense
D	Accumulated Depreciation
E	Interest Revenue
F	Notes Payable
G	Advertising Expense
H	Owner's Drawings
I	Equipment
J	Owner's Capital
K	Sales Revenue
L	Prepaid Insurance

                                   

Answer 1

Ans.
		Type of Account	Normal Balance	Financial Statement
A	Cash	Assets	Debit	Balance sheet
B	Accounts payable	Liabilities	Credit	Balance sheet
C	Rent expense	Expenses	Debit	Income statement
D	Accumulated depreciation	Liabilities	Credit	Balance sheet
E	Interest revenue	Revenues	Credit	Income statement
F	Notes payable	Liabilities	Credit	Balance sheet
G	Advertising expenese	Expenses	Debit	Income statement
H	Owner's drawings	Owner's drawings	Debit	Owner's equity statement
I	Equipment	Assets	Debit	Balance sheet
J	Owner's capital	Owner's capital	Credit	Owner's equity statement
K	Sales revenue	Revenues	Credit	Income statement
L	Prepaid insurance	Assets	Debit	Balance sheet
	*All assets have normal debit balance.
	*All liabilities and equities have normal credit balance.
	*All expenses have normal debit balance.
	*All revenues have normal credit balance.
	*Assets and liabilities are listed in balance sheet.
	*Revenues and expenses are the part of income statement.