Indicate whether each of the followings accounts normally has a debit balance or a or a credit balance
1.Mary Amos,Capital
2.Cash
3.Fees income
4.Accounts Payable
5.Supplies
6.Salaries Expense
7.Accounts Receivable
8.Equipment
To determine whether each of the accounts normally has a debit or a credit balance, we can refer to the fundamental accounting equation: Assets = Liabilities + Owner's Equity.
1. Mary Amos, Capital:
Mary Amos, Capital is an owner's equity account. Owner's equity represents the owner's investment in the business. It typically has a credit balance because it represents the owner's rights to the assets of the business.
2. Cash:
Cash is an asset account. Assets represent the resources owned by the business. Cash has a debit balance because it increases with debit entries (e.g., when the business receives cash) and decreases with credit entries (e.g., when the business makes cash payments).
3. Fees Income:
Fees Income is a revenue account. Revenue accounts represent the income generated by the business. Fees Income has a credit balance because it increases with credit entries (e.g., when the business earns fees from services rendered) and decreases with debit entries.
4. Accounts Payable:
Accounts Payable is a liability account. Liabilities represent the obligations owed by the business. Accounts Payable has a credit balance because it increases with credit entries (e.g., when the business incurs expenses on credit) and decreases with debit entries (e.g., when the business makes payments to its creditors).
5. Supplies:
Supplies is an asset account. Supplies represent the materials or products that the business uses. Supplies has a debit balance because it increases with debit entries (e.g., when the business purchases supplies) and decreases with credit entries (e.g., when the business consumes supplies).
6. Salaries Expense:
Salaries Expense is an expense account. Expense accounts represent the costs incurred by the business. Salaries Expense has a debit balance because it increases with debit entries (e.g., when the business incurs salaries expense) and decreases with credit entries.
7. Accounts Receivable:
Accounts Receivable is an asset account. It represents the amounts owed to the business by its customers. Accounts Receivable has a debit balance because it increases with debit entries (e.g., when the business makes a sale on credit) and decreases with credit entries (e.g., when the customer pays the outstanding amount).
8. Equipment:
Equipment is an asset account. It represents the physical assets owned by the business. Equipment has a debit balance because it increases with debit entries (e.g., when the business purchases equipment) and decreases with credit entries (e.g., when the business sells or depreciates its equipment).
Remember that these are the normal balances for these accounts, but there can be exceptions depending on specific transactions and adjustments made during the accounting period.