Question

1. For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, and (2) identify the normal balance of the account (debit or credit and the financial statement that the account is listed on (Income Statement or Balance Sheet) Normal balance (debit or credit) Financial statement Account title Account type Asset Cash Prepaid insurance Accounts payable Common stock Utilities expense Land Service revenue Notes receivable Advertising expense Unearned revenue Debit Balance sheet

Answer 1

Accounts title	Accounts type	Normal balance(debit of Credit)	Financial statement
Cash	Asset	Debit	Balance sheet
Prepaid insurance	Asset	Debit	Balance sheet
Accounts payable	Liability	Credit	Balance sheet
Common stock	Equity	Credit	Balance sheet
Utilities expense	Expense	Debit	Income statement
Land'	Asset	Debit	Balance sheet
Service revenue	Revenue	Credit	Income statement
Notes receivable	Asset	Debit	Balance sheet
Advertising expense	Expense	Debit	Income statement
Un earned revenue	Liability	Credit	Balance sheet

Note

All assets and expense have debit balance and all liabilities, equity and revenue accounts have credit balances.

Liabilities and assets are reported on balance sheet but all expenses and revenues are reported on income statement.