can someone correct these for me thanks. If you have a spare minutes. I'll appreciate it....
Identify whether the normal balances (in parentheses) assigned to the following accounts are correct
or incorrect.
a. Office supplies (Debit)
My answer: Correct
b. Owner Withdrawals (Credit)
My answer: Incorrect
c. Fees Earned (Debit)
My answer: Incorrect
d. Wages Expense (Credit)
My answer:Incorrect
e. Cash (Debit)
My answer:Correct
f. Prepaid Insurance (Credit)
My answer: Incorrect
g. Wages Payable (Credit)
MY answer: Correct
h. Building (Debit)
My ansswer: Correct
To determine whether the normal balances assigned to the given accounts are correct, you need to understand the basic principles of double-entry bookkeeping. In double-entry bookkeeping, every transaction affects at least two accounts and must be recorded with both a debit and a credit.
In general, assets and expenses have a normal debit balance, while liabilities, equity, and revenue have a normal credit balance.
Now let's go through each account to determine whether the normal balance assigned is correct or incorrect:
a. Office supplies (Debit):
Your answer: Correct.
Explanation: Office supplies are an asset, and assets have normal debit balances, so your answer is correct.
b. Owner Withdrawals (Credit):
Your answer: Incorrect.
Explanation: Owner withdrawals are considered a reduction in the owner's equity, specifically the owner's drawing account. Since owner's equity has a normal credit balance, your answer should be corrected to "Incorrect."
c. Fees Earned (Debit):
Your answer: Incorrect.
Explanation: Fees earned represent revenue, and revenue has a normal credit balance. Your answer should be corrected to "Incorrect."
d. Wages Expense (Credit):
Your answer: Incorrect.
Explanation: Wages expense represents an expense, and expenses have a normal debit balance. Your answer should be corrected to "Incorrect."
e. Cash (Debit):
Your answer: Correct.
Explanation: Cash is an asset, and assets have normal debit balances. Therefore, your answer is correct.
f. Prepaid Insurance (Credit):
Your answer: Incorrect.
Explanation: Prepaid insurance is an asset, and assets have normal debit balances. Your answer should be corrected to "Incorrect."
g. Wages Payable (Credit):
Your answer: Correct.
Explanation: Wages payable is a liability, and liabilities have normal credit balances. Therefore, your answer is correct.
h. Building (Debit):
Your answer: Correct.
Explanation: The building is an asset, and assets have normal debit balances. Your answer is correct.
Overall, you have provided correct answers for Office Supplies, Cash, Wages Payable, and Building. However, you need to correct your answers for Owner Withdrawals, Fees Earned, Wages Expense, and Prepaid Insurance.