For each account, identify whether the normal balance is a Debit(DR) or Credit (CR). f. Herman, Capitalg. Utilities Expenseh. Office Suppliesi. Advertising Expensej. Interest Payable

Answered: f. Herman, Capital g. Utilities Expense…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

100%

For each account, identify whether the normal balance is a Debit(DR) or Credit (CR).

f. Herman, Capital
g. Utilities Expense
h. Office Supplies
i. Advertising Expense
j. Interest Payable

Expert Solution

Introduction

According to the accounting principles, all assets and expenses have a normal debit balance, and all liabilities and incomes have a normal credit balance. It means that debiting an asset account (or an expense account) increases its balance, and crediting an asset account (or an expense account) decreases its balance. On the other hand, when we credit a liability or an income account, its balance increases, and when we debit a liability or income account, then its balance decreases.

Note: Shareholders' equity or owner's capital is a form of business liability but it is reported separately.

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions