Question

Identify each of the following accounts of Dispatch Services Co. as asset, liability, owner's equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit:

Item	Type of Account	Debit or Credit
a. Accounts Payable
b. Accounts Receivable
c. Ashley Griffin, Capital
d. Ashley Griffin, Drawing
e. Cash
f. Fees Earned
g. Office Equipment
h. Rent Expense
i. Supplies
j. Wages Expense

Answer 1

				Explanation
Sr. No.	Item	Type of account	Debit or Credit	Nature of account	Fundamental accounting principle
a	Accounts Payable	Liability	Credit	Personal	Debit the giver and credit the receiver
b	Accounts Receivable	Asset	Debit	Personal	Debit the giver and credit the receiver
c	Ashley Griffin, Capital	Owner's Equity	Credit	Personal	Debit the giver and credit the receiver
d	Ashley Griffin, Drawings	Owner's Equity	Debit	Personal	Debit the giver and credit the receiver
e	Cash	Asset	Debit	Real	Debit what comes in, credit what goes out
f	Fees Earned	Revenue	Credit	Nominal	Debit the expenses and Losses and credit the revenue & gains
g	Office Equipement	Asset	Debit	Real	Debit what comes in, credit what goes out
h	Rent expense	Expense	Debit	Nominal	Debit the expenses and Losses and credit the revenue & gains
i	Supplies	Asset	Debit	Real	Debit what comes in, credit what goes out
j	Wages expenses	Expense	Debit	Nominal	Debit the expenses and Losses and credit the revenue & gains