Account: An account refers to a financial record in the general ledger, where the increase or decrease in the values of the assets, liabilities, stockholder’s equity, revenues or expenditures of the business, pertaining to a particular period are recorded. Some of the accounts are assets, liabilities, and stockholder’s equity. Assets: Assets are the resources, owned by the company, that are used for the generation of income in the future. Assets are classified under four major heads which are as follows: Current assets Long-term investments Property, Plant and Equipment Intangible assets Some of the examples of assets are equipment, accounts receivable , supplies, and cash. Liabilities: Liabilities refer to the financial debts or obligations, which the company is owed to its creditors. The creditors have the claims over the assets of the company. Some of the examples of the liabilities are accounts payable, unearned revenue, and income tax payable. Stockholders’ equity : Stockholder’s equity represents the capital contributed by the shareholders to its business and the revenues generated for the business. Stockholders’ equity is sometimes referred to as the net worth of the shareholders or stockholders. The two parts of stockholders’ equity are common stock and retained earnings . Normal debit and credit balance: 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 Assets account Debit balance Liabilities account Credit balance Expense account Debit balance Revenue account Credit balance Dividends account Debit balance Table (1) To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

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Answer 1

Question

Chapter 3, Problem 11Q

(a)

To determine

Account:

An account refers to a financial record in the general ledger, where the increase or decrease in the values of the assets, liabilities, stockholder’s equity, revenues or expenditures of the business, pertaining to a particular period are recorded. Some of the accounts are assets, liabilities, and stockholder’s equity.

Assets:

Assets are the resources, owned by the company, that are used for the generation of income in the future. Assets are classified under four major heads which are as follows:

Current assets

Long-term investments

Property, Plant and Equipment

Intangible assets

Some of the examples of assets are equipment, accounts receivable, supplies, and cash.

Liabilities:

Liabilities refer to the financial debts or obligations, which the company is owed to its creditors. The creditors have the claims over the assets of the company. Some of the examples of the liabilities are accounts payable, unearned revenue, and income tax payable.

Stockholders’ equity:

Stockholder’s equity represents the capital contributed by the shareholders to its business and the revenues generated for the business. Stockholders’ equity is sometimes referred to as the net worth of the shareholders or stockholders. The two parts of stockholders’ equity are common stock and retained earnings.

Normal debit and credit balance:

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
Assets account Debit balance
Liabilities account Credit balance
Expense account Debit balance
Revenue account Credit balance
Dividends account Debit balance

Table (1)

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(b)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(c)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(d)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(e)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

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Students have asked these similar questions

Michiko Industries uses flexible budgets. At a normal capacity of 25,000 units, the budgeted manufacturing overhead is $75,000 variable and $300,000 fixed. If Michiko Industries had actual overhead costs of $385,500 for 27,000 units produced, what is the difference between actual and budgeted costs?

Can you solve this general accounting problem with appropriate steps and explanations?

Edison Manufacturing uses a single raw material in its production process. The standard price for a unit of material is $2.25. During the month, the company purchased and used 820 units of this material at a price of $2.10 per unit. The standard quantity required per finished product is 4 units, and during the month, the company produced 200 finished units. How much was the material price variance?

Answer 2

Question

Chapter 3, Problem 11Q

(a)

To determine

Account:

An account refers to a financial record in the general ledger, where the increase or decrease in the values of the assets, liabilities, stockholder’s equity, revenues or expenditures of the business, pertaining to a particular period are recorded. Some of the accounts are assets, liabilities, and stockholder’s equity.

Assets:

Assets are the resources, owned by the company, that are used for the generation of income in the future. Assets are classified under four major heads which are as follows:

Current assets

Long-term investments

Property, Plant and Equipment

Intangible assets

Some of the examples of assets are equipment, accounts receivable, supplies, and cash.

Liabilities:

Liabilities refer to the financial debts or obligations, which the company is owed to its creditors. The creditors have the claims over the assets of the company. Some of the examples of the liabilities are accounts payable, unearned revenue, and income tax payable.

Stockholders’ equity:

Stockholder’s equity represents the capital contributed by the shareholders to its business and the revenues generated for the business. Stockholders’ equity is sometimes referred to as the net worth of the shareholders or stockholders. The two parts of stockholders’ equity are common stock and retained earnings.

Normal debit and credit balance:

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
Assets account Debit balance
Liabilities account Credit balance
Expense account Debit balance
Revenue account Credit balance
Dividends account Debit balance

Table (1)

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(b)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(c)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(d)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(e)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

Expert Solution & Answer

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Answer 3

Question

Chapter 3, Problem 11Q

(a)

To determine

Account:

An account refers to a financial record in the general ledger, where the increase or decrease in the values of the assets, liabilities, stockholder’s equity, revenues or expenditures of the business, pertaining to a particular period are recorded. Some of the accounts are assets, liabilities, and stockholder’s equity.

Assets:

Assets are the resources, owned by the company, that are used for the generation of income in the future. Assets are classified under four major heads which are as follows:

Current assets

Long-term investments

Property, Plant and Equipment

Intangible assets

Some of the examples of assets are equipment, accounts receivable, supplies, and cash.

Liabilities:

Liabilities refer to the financial debts or obligations, which the company is owed to its creditors. The creditors have the claims over the assets of the company. Some of the examples of the liabilities are accounts payable, unearned revenue, and income tax payable.

Stockholders’ equity:

Stockholder’s equity represents the capital contributed by the shareholders to its business and the revenues generated for the business. Stockholders’ equity is sometimes referred to as the net worth of the shareholders or stockholders. The two parts of stockholders’ equity are common stock and retained earnings.

Normal debit and credit balance:

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
Assets account Debit balance
Liabilities account Credit balance
Expense account Debit balance
Revenue account Credit balance
Dividends account Debit balance

Table (1)

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(b)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(c)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(d)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(e)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

Expert Solution & Answer

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Answer 4

Question

Chapter 3, Problem 11Q

(a)

To determine

Account:

An account refers to a financial record in the general ledger, where the increase or decrease in the values of the assets, liabilities, stockholder’s equity, revenues or expenditures of the business, pertaining to a particular period are recorded. Some of the accounts are assets, liabilities, and stockholder’s equity.

Assets:

Assets are the resources, owned by the company, that are used for the generation of income in the future. Assets are classified under four major heads which are as follows:

Current assets

Long-term investments

Property, Plant and Equipment

Intangible assets

Some of the examples of assets are equipment, accounts receivable, supplies, and cash.

Liabilities:

Liabilities refer to the financial debts or obligations, which the company is owed to its creditors. The creditors have the claims over the assets of the company. Some of the examples of the liabilities are accounts payable, unearned revenue, and income tax payable.

Stockholders’ equity:

Stockholder’s equity represents the capital contributed by the shareholders to its business and the revenues generated for the business. Stockholders’ equity is sometimes referred to as the net worth of the shareholders or stockholders. The two parts of stockholders’ equity are common stock and retained earnings.

Normal debit and credit balance:

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
Assets account Debit balance
Liabilities account Credit balance
Expense account Debit balance
Revenue account Credit balance
Dividends account Debit balance

Table (1)

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(b)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(c)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(d)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(e)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 11Q

(a)

To determine

Account:

An account refers to a financial record in the general ledger, where the increase or decrease in the values of the assets, liabilities, stockholder’s equity, revenues or expenditures of the business, pertaining to a particular period are recorded. Some of the accounts are assets, liabilities, and stockholder’s equity.

Assets:

Assets are the resources, owned by the company, that are used for the generation of income in the future. Assets are classified under four major heads which are as follows:

Current assets

Long-term investments

Property, Plant and Equipment

Intangible assets

Some of the examples of assets are equipment, accounts receivable, supplies, and cash.

Liabilities:

Liabilities refer to the financial debts or obligations, which the company is owed to its creditors. The creditors have the claims over the assets of the company. Some of the examples of the liabilities are accounts payable, unearned revenue, and income tax payable.

Stockholders’ equity:

Stockholder’s equity represents the capital contributed by the shareholders to its business and the revenues generated for the business. Stockholders’ equity is sometimes referred to as the net worth of the shareholders or stockholders. The two parts of stockholders’ equity are common stock and retained earnings.

Normal debit and credit balance:

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
Assets account Debit balance
Liabilities account Credit balance
Expense account Debit balance
Revenue account Credit balance
Dividends account Debit balance

Table (1)

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(b)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(c)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(d)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

(e)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

Answer 6

Chapter 3, Problem 11Q

(a)

To determine

Account:

An account refers to a financial record in the general ledger, where the increase or decrease in the values of the assets, liabilities, stockholder’s equity, revenues or expenditures of the business, pertaining to a particular period are recorded. Some of the accounts are assets, liabilities, and stockholder’s equity.

Assets:

Assets are the resources, owned by the company, that are used for the generation of income in the future. Assets are classified under four major heads which are as follows:

Current assets

Long-term investments

Property, Plant and Equipment

Intangible assets

Some of the examples of assets are equipment, accounts receivable, supplies, and cash.

Liabilities:

Liabilities refer to the financial debts or obligations, which the company is owed to its creditors. The creditors have the claims over the assets of the company. Some of the examples of the liabilities are accounts payable, unearned revenue, and income tax payable.

Stockholders’ equity:

Stockholder’s equity represents the capital contributed by the shareholders to its business and the revenues generated for the business. Stockholders’ equity is sometimes referred to as the net worth of the shareholders or stockholders. The two parts of stockholders’ equity are common stock and retained earnings.

Normal debit and credit balance:

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
Assets account Debit balance
Liabilities account Credit balance
Expense account Debit balance
Revenue account Credit balance
Dividends account Debit balance

Table (1)

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

Answer 7

Chapter 3, Problem 11Q

(a)

To determine

Account:

An account refers to a financial record in the general ledger, where the increase or decrease in the values of the assets, liabilities, stockholder’s equity, revenues or expenditures of the business, pertaining to a particular period are recorded. Some of the accounts are assets, liabilities, and stockholder’s equity.

Assets:

Assets are the resources, owned by the company, that are used for the generation of income in the future. Assets are classified under four major heads which are as follows:

Current assets

Long-term investments

Property, Plant and Equipment

Intangible assets

Some of the examples of assets are equipment, accounts receivable, supplies, and cash.

Liabilities:

Liabilities refer to the financial debts or obligations, which the company is owed to its creditors. The creditors have the claims over the assets of the company. Some of the examples of the liabilities are accounts payable, unearned revenue, and income tax payable.

Stockholders’ equity:

Stockholder’s equity represents the capital contributed by the shareholders to its business and the revenues generated for the business. Stockholders’ equity is sometimes referred to as the net worth of the shareholders or stockholders. The two parts of stockholders’ equity are common stock and retained earnings.

Normal debit and credit balance:

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
Assets account Debit balance
Liabilities account Credit balance
Expense account Debit balance
Revenue account Credit balance
Dividends account Debit balance

Table (1)

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

Answer 8

(b)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

Answer 9

(b)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

Answer 10

(c)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

Answer 11

(c)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

Answer 12

(d)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

Answer 13

(d)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

Answer 14

(e)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

Answer 15

(e)

To determine

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 3 - Prob. 1Q Ch. 3 - Can a business enter into a transaction that...Ch. 3 - Are the followingevents recorded in the accounting...Ch. 3 - Prob. 4Q Ch. 3 - Prob. 5Q Ch. 3 - Prob. 6Q Ch. 3 - Prob. 7Q Ch. 3 - Misty Reno, a beginning accounting student,...Ch. 3 - Prob. 9Q Ch. 3 - What is the normal balance for each of these...

Solution Summary: The author explains that an account is a financial record in the general ledger, where the increase or decrease in values of assets, liabilities, stockholder's equity, revenues or expenditures of the business are recorded.

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To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

To indicate: whethereach of the following account is an asset, a liability, or a stockholder’s equity account and whether it would have a normal debit or credit balance.

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Chapter 3 Solutions

Type of account	Normal balance
Assets account	Debit balance
Liabilities account	Credit balance
Expense account	Debit balance
Revenue account	Credit balance
Dividends account	Debit balance