Question

Problem 1/15 minutes): Increases and decreases in various types of accounts are listed below. In each case, indicate by "Dr." or "Cr." (a) whether the change in the account would be recorded as a debit or a credit and (b) whether the normal balance of the account is a debit or a credit. Please answer Assignment 1 in your assignment workbook. Recorded As Normal Balance (2) (3) (5) (6) (7) (8) (9) (10) Increase in Dennis Demano, Capital Increase in Dennis Demano, Drawing Decrease in Accounts Receivable Increase in Note Payable Increase in Accounts Payable Decrease in Supplies Decrease in Salaries Expense Increase in Accounts Receivable Increase in Cash Decrease in Land

Answer 1

		Recorded As	Normal Balance	Supporting Explanations
1)	Increase in Dennis Demano, Capital	Credit	Credit	Capital is part of Common Stock and shareholders' equity that always has credit balance so a debit decreases its balance and a credit increases its balance.
2)	Increase in Dennis Demano, Drawing	Debit	Debit	Drawings is contra part of shareholders' equity that decreases its balance so it has debit balance so a debit increases its balance and a credit decreases its balance.
3)	Decrease in Accounts Receivable	Credit	Debit	Accounts Receivable is part of Assets that always has debit balance so a debit increases its balance and a credit decreases its balance.
4)	Increase in Notes Payable	Credit	Credit	Notes Payable is part of Liabilities that always has credit balance so a debit decreases its balance and a credit increases its balance.
5)	Increase in Accounts Payable	Credit	Credit	Accounts Payable is part of Liabilities that always has credit balance so a debit decreases its balance and a credit increases its balance.
6)	Decrease in Supplies	Credit	Debit	Supplies is part of Assets that always has debit balance so a debit increases its balance and a credit decreases its balance.
7)	Decrease in Salaries Expense	Credit	Debit	Salaries Expense is part of Expenses that always has debit balance so a debit increases its balance and a credit decreases its balance.
8)	Increase in Accounts Receivable	Debit	Debit	Accounts Receivable is part of Assets that always has debit balance so a debit increases its balance and a credit decreases its balance.
9)	Increase in Cash	Debit	Debit	Cash is part of Assets that always has debit balance so a debit increases its balance and a credit decreases its balance.
10)	Decrease in Land	Credit	Debit	Land is part of Assets that always has debit balance so a debit increases its balance and a credit decreases its balance.