Below is a list of typical accounts.Required: For each account, indicate (1) the type of account and (2) whether the normal account balance is a debit or credit. For type of account, choose from asset, liability, stockholders’ equity, dividend, revenue, or expense. Normal BalanceAccountsType of Account(Debit or Credit)1. Supplies2. Advertising Expense3. Prepaid Insurance4. Supplies Expense5. Accounts Payable6. Equipment7. Dividends8. Accounts Receivable9. Retained Earnings10. Deferred Revenue11. Service Revenue12. Utilities Payable

The incomes and expenses are of the income statement where incomes are to be recorded on the credit…

Normal Balance Accounts Type of Account (Debit or Credit) 1. Supplies 2. Advertising Expense 3. Prepaid Insurance 4. Supplies Expense 5. Accounts Payable 6. Equipment 7. Dividends 8. Accounts Receivable 9. Retained Earnings 10. Deferred Revenue 11. Service Revenue 12. Utilities Payable

Normal Balance Accounts Type of Account (Debit or Credit) 1. Supplies 2. Advertising Expense 3. Prepaid Insurance 4. Supplies Expense 5. Accounts Payable 6. Equipment 7. Dividends 8. Accounts Receivable 9. Retained Earnings 10. Deferred Revenue 11. Service Revenue 12. Utilities Payable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Below is a list of typical accounts.

Required:
For each account, indicate (1) the type of account and (2) whether the normal account balance is a debit or credit. For type of account, choose from asset, liability, stockholders’ equity, dividend, revenue, or expense.

Normal Balance
Accounts
Type of Account
(Debit or Credit)
1. Supplies
2. Advertising Expense
3. Prepaid Insurance
4. Supplies Expense
5. Accounts Payable
6. Equipment
7. Dividends
8. Accounts Receivable
9. Retained Earnings
10. Deferred Revenue
11. Service Revenue
12. Utilities Payable

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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