Question

Indicate in which financial statement(s) each item would most likely appear, by selecting income statement (1), balance sheet (B), statement of retained earnings (E), or Statement of cash flows (CF) from the drop down provided. Postage expense b. Common stock c. Dividends d. Rent expense e. Note payable f. Supplies expense g. Supplies h. Insurance expense i. Equipment

Answer 1

Indicate in which financial statement each item would most likely appear: income statement (I), balance sheet (B), statement of retained earnings (E), or statement of cash flows (CF).

Answer -

a.	Postage expense	I
b.	Common stock	B
c.	Dividends	E
d.	Rent expense	I
e.	Note payable	B
f.	Supplies expense	I
g.	Supplies	B
h.	Insurance expense	I
i.	Equipment	B

.

Indicate whether a debit or credit decreases the normal balance of each of the following accounts.

Answer -

Decreases Normal Balance
a.	Unearned Subscriptions	Debit
b.	Unearned Ticket Revenue	Debit
c.	Common Stock	Debit
d.	Rental Revenue	Debit
e.	Commission Revenue	Debit
f.	Salaries Expense	Credit
g.	Advertising Expense	Credit
h.	Utilities Expense	Credit
i.	Delivery Expense	Credit
j.	Fuel Expense	Credit
k.	Janitorial Expenses	Credit
l.	Dividends	Debit