Chapter 2, Problem 1EYCT

(a)

To determine

Normal balance: It is that balance of an account that it normally possess in the books of accounts such as,

• Asset has debit balance.
• Liability has credit balance.
• Stockholder’s equity has credit balance.
• Expense has debit balance.
• Income has credit balance.

To identify: Increase and decrease side and normal balance of accounts.

(b)

To determine

To identify: Probable other account in the transaction and the effect on that account.

(c)

To determine

To identify: The other account that ordinarily would be involved in given transaction.