Chapter 2, Problem 2.3BYP

(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: Normal balances of accounts that ordinarily would be involved in given transaction.

(b)

To determine

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