Question

For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense: (2) identify the normal balance of the account; and (3) select debit (Dr.) or credit (Cr.) to identify the kind of entry that would increase the account balance. Type of Account Liability Normal Balance increase (Dr. or Cr.) Credit Credit Account a. Accounts Payable b. Consulting Revenue c. Salaries Expense d. Utilities Expense e. Prepaid Rent f. Wages Payable 9. Notes Receivable h. Land i. Cash Legal Expense k Prepaid Insurance 1. Accounts Receivable

Answer 1

	Acount	Types of account	Normal Balance	Increase (Dr. or Cr)
a	Accounts Payable	Liabilities	Credit	Credit
b	Consulting revenue	Revenue	Credit	Credit
c	Salaries expenses	Expense	Debit	Debit
d	Utility expenses	Expense	Debit	Debit
e	Prepaid Rent	Asset	Debit	Debit
f	Wages Payable	Liabilities	Credit	Credit
g	Notes Receivable	Asset	Debit	Debit
h	Land	Asset	Debit	Debit
i	Cash	Asset	Debit	Debit
j	Legal Expenses	Expense	Debit	Debit
k	Prepaid insurance	Asset	Debit	Debit
l	Accounts Receivable	Asset	Debit	Debit

	JOURNAL ENTRIES
Date	General Gernal	Debit	Credit
August,1	Cash	12000
	Photography Equipment	51600
	Capital Stock		63600
2	Prepaid Insurance	3800
	Cash		3800
5	Supplies	2280
	Cash		2280
20	Cash	2250
	Fees Earned		2250
31	Utility	876
	Cash		876
		72806	72806

SPADAY COMPANY
Trial Balance
May, 31
	Debit	Credit
Cash	6020
Capital Stock		18000
Supplies	522
Equipment	9954
Fees Earned		2124
Fees Paid	3816
Rent	515
Account Receivable		1603
Drawing	900
TOTAL	21727	21727

a	Store Equipment	B
b	Store Supplies	I
c	Supplies	I
d	Supplies Expenses	I
e	Taxes Expenses	I
f	Taxes Payable	B
g	Trucks	B
h	Unearned Revenue	B
i	Unearned Subscription	B
j	Unearned Ticket Revenue	B
k	Utilities Expenses	I
l	Utilities Payable	B

	JOURNAL ENTRIES
Date	General Gernal	Debit	Credit
May, 1	Cash	2500
	Fees Earned		2500
3	Supplies	550
	Accounts payable		550
9	Cash	1500
	Fees Earnes		1500
20	Supplies	550
	Cash		550
31	Utility	350
	Cash		350