Question

 

Indicate the financial statement on which each of the following items appears. Use I for income statement, E for statement of retained earnings, and B for balance sheet. 

a.Note Receivable b. Office Equipment c. Office Supplies d. Dividends e. Postage Expense f. Prepaid Insurance g. Prepaid Rent h. Prepaid Service Fees Rent Expense j. Rental Revenue k. Repairs Expense i. Salaries Expense

 

Identify the normal balance (debit or credit) for each of the following accounts. 

Normal Ending Balance 

a. Fuel Expense

b. Furniture

c.Rent Revenue

d.Postage Expense

e. Office Equipment

f. Building

g. Accounts Receivable

h. Salaries Expense

i. Salaries Payable

Answer 1

Part 1

All expenses and revenue are shown in the income statement. Net income and dividends are included in statement of retained earning.

All assets, liabilities and stockholders' equity are included in the balance sheet.

a	Note receivable	B
b	Office equipment	B
c	Office supplies	B
d	Dividends	E
e	Postage expense	I
f	Prepaid insurance	B
g	Prepaid rent	B
h	Prepaid service fees	B
i	Rent expense	I
j	Rental revenue	I
k	Repairs expense	I
l	Salaries expense	I

Part 2

All expense and assets have normal debit balance. All revenue and liabilities have normal credit balance

Normal ending Balance

a	Fuel expense	Debit
b	Furniture	Debit
c	Rent revenue	Credit
d	Postage expense	Debit
e	Office equipment	Debit
f	Building	Debit
g	Accounts receivable	Debit
h	Salaries expense	Debit
i	Salaries payable	Credit