Financial Accounting
3rd Edition
ISBN: 9780078025549
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Question
Chapter 2, Problem 9RQ
To determine
Normal balance:
Normal balance refers to the excess of amount on one side, over the amount on the other side in an account. The excess amount of debit side over the credit side is shown as the normal debit balance. The excess amount of credit side over the debit side is shown as the normal credit balance.
Type of account | Normal balance |
Asset account | Debit balance |
Liability account | Credit balance |
Expense account | Debit balance |
Revenue account | Credit balance |
Dividend account | Debit balance |
Table (1)
To indicate: Whether to debit or credit the following accounts in order to decrease the balance of the account.
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Chapter 2 Solutions
Financial Accounting
Ch. 2 - Prob. 1RQCh. 2 - 2.List the steps we use to measure external...Ch. 2 - 3.Each external transaction will have a dual...Ch. 2 - 4.Describe the impact of each of these external...Ch. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - 10.Suzanne knows that an increase to an expense...
Ch. 2 - 11.What is a journal? What is a journal entry?Ch. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - Prob. 14RQCh. 2 - 15.Describe the events that correspond to the...Ch. 2 - 16.What does a T-account represent? What is the...Ch. 2 - Prob. 17RQCh. 2 - Prob. 18RQCh. 2 - Prob. 19RQCh. 2 - 20.If total debits equal total credits in the...Ch. 2 - List steps in the measurement process (LO21) Below...Ch. 2 - Balance the accounting equation (LO22) Using the...Ch. 2 - Suppose a local company has the following balance...Ch. 2 - Analyze the Impact of transactions on the...Ch. 2 - Understand the effect of debits and credits on...Ch. 2 - Prob. 2.6BECh. 2 - Record transactions (LO24) The following...Ch. 2 - Prob. 2.8BECh. 2 - Analyze T-accounts (LO25) Consider the following...Ch. 2 - Prob. 2.10BECh. 2 - Prob. 2.11BECh. 2 - Correct a trial balance (LO26) Your study partner...Ch. 2 - Listed below are several terms and phrases...Ch. 2 - Prob. 2.2ECh. 2 - Analyze the Impact of transactions on the...Ch. 2 - Analyze the Impact of transactions on the...Ch. 2 - Understand the components of retained earnings...Ch. 2 - Indicate the debit or credit balance of accounts...Ch. 2 - Associate debits and credits with external...Ch. 2 - Prob. 2.8ECh. 2 - Identify transactions (LO24) Below are recorded...Ch. 2 - Prob. 2.10ECh. 2 - Record transactions (LO24) Bearcat Construction...Ch. 2 - Correct recorded transactions (LO24) Below are...Ch. 2 - Correct recorded transactions (LO24) Below are...Ch. 2 - Prob. 2.14ECh. 2 - Post transactions to T-accounts (LO25) Consider...Ch. 2 - Identify transaction (LO25) Below are T-accounts....Ch. 2 - Prob. 2.17ECh. 2 - Prepare o trial balance (LO26) Below is the...Ch. 2 - Prob. 2.19ECh. 2 - Prob. 2.20ECh. 2 - Below is a list of activities for Jayhawk...Ch. 2 - Prob. 2.2APCh. 2 - Prob. 2.3APCh. 2 - Prob. 2.4APCh. 2 - Refer to the transactions described in P24A. Keep...Ch. 2 - Prob. 2.6APCh. 2 - Prob. 2.7APCh. 2 - Prob. 2.8APCh. 2 - Prob. 2.9APCh. 2 - Analyze the impact of transactions on the...Ch. 2 - Prob. 2.2BPCh. 2 - Prob. 2.3BPCh. 2 - Record transactions (LO24) Flip Side of P25B Eli...Ch. 2 - Prob. 2.5BPCh. 2 - Prob. 2.6BPCh. 2 - Prob. 2.7BPCh. 2 - Prob. 2.8BPCh. 2 - Prob. 2.9BPCh. 2 - Prob. 2.1APCPCh. 2 - Prob. 2.2APFACh. 2 - Prob. 2.3APFACh. 2 - Prob. 2.4APCACh. 2 - Prob. 2.5APECh. 2 - Prob. 2.6APIRCh. 2 - Prob. 2.7APWC
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- 10.Which of the following accounts would be increased with a debit?  a. Withdrawals account. b. Legal fees earned c. Rent Payable d. Owner’s capital accountarrow_forward12. An account to be debited should be firstly determined in recording transaction in the general journal. Which of the following should come first?* O A. Cash, when the balance decreases B. Accounts payable, when the balance increases C. Accounts receivable, when the balance decreases D. Rent expense, when the balance increasesarrow_forwardAnalyze the statement given then choose if the effect on account will Increase or Decrease it. Afterwards, write your answer before the number. Interest revenue that is entered in the credit side. Prepaid expense that is entered in the debit side. Interest payable that is entered in the debit side. Salaries expense that is entered in the credit side. Prepaid rent that is entered in the credit side. Unearned revenue that is entered in the debit side. Deferred revenue that is entered in the debit side. Interest expense that is entered in the credit side. Accrued liability that is entered in the debit side. Accumulated depreciation that is entered in the credit side.arrow_forward
- Which of the following accounts is not a permanent account?  Select one: a. Utilities Expense b. Cash in Bank c. Accounts Payable d. Retained Earningsarrow_forwardFigure out the amount of total debits by determining which accounts have a normal debit balance.arrow_forwardWhich among the following accounts will increase with a debit? a. Service revenue b. Capital c. Furniture d. Accounts payablearrow_forward
- Indicate whether a debit or credit decreases the normal balance of each of the following accounts. Decrease Normal Balance a. Prepaid Rent b. Cash c. Office Supplies d. Notes Receivable e. Accounts Receivable f. Interest Payablearrow_forward1. What is the corrected balance of cash account? 2. What is the corrected balance of Accounts Receivable account? 3. What is the corrected balance of supplies account? 4. What is the corrected balance of prepaid insurance account? 5. What is the corrected balance of notes payable account? 6. What is the corrected balance of accounts payable account? 7. What is the corrected balance of Reena, Capital account? 8. What is the corrected balance of Reena, drawing account? 9. What is the corrected balance of advertising expense account? 10. What is the corrected balance of debit and credit columns of the Trial Balance?arrow_forwardClassify each account below using the following alternatives: Asset, Liabilities, Equity, Revenue, Expenses. Also inform where each account has its normal balance: Debit or Credit. 1. Cash 2. Account Receivable 3. Supplies 4. Prepaid Insurance 5. Truck 6. Notes Payables 7. Rent Revenue 8. Sales Revenue 9. MR Capital 10. MR Drawings 11. Truck expenses 12. Depreciation expenses 13. Wages Expenses 14. Accrual Payable 15. Accounts Payables 16. Long Term Debt 17. Inventoryarrow_forward
- 11. Which of the following accounts would be increased with a credit?  a Supplies Expense b Supplies c Fees Earned d Withdrawals accountarrow_forwardFor each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance (Debit or Credit). Increase (+), Decrease (–).  Debit _Credit_ Normal Balance a. Salaries and Wages Expense. _______ _______ _______ b. Accounts Receivable. _______ _______ _______ c. Service Revenue. _______ _______ _______ d. Dividends _______ _______ _______ e. Retained Earnings. _______ _______ _______arrow_forwardUse the following to answer questions 10 – 13 Indicate which of the following accounts should be debited and which should be credited. An example has been provided (ex). Purchase Office Supplies in exchange for cash Debit : N (Supplies) Credit: C (Cash)...see below. Only include the letter of the account not the account name. A. Accounts payable E. Dividends I. Rent expense M. Service revenue B. Accounts receivable F. Equipment J. Retained earnings N. Supplies C. Cash G. Notes payable K. Salaries expense O. Utilities expense D. Common stock H. Prepaid rent L. Salaries payable Account Debited Account Credited ex Purchase Office Supplies in exchange for cash 10. Received the utility bill, will pay next week. 11. Paid a deposit for rent for the next three months. 12. Recorded salaries for the week, will pay next week. 13. Provided services to customers on account.arrow_forward
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ACCOUNTING BASICS: Debits and Credits Explained; Author: Accounting Stuff;https://www.youtube.com/watch?v=VhwZ9t2b3Zk;License: Standard Youtube License