Please double check me.
Indicate whether a debit or credit decreases the normal balance of each of the following accounts.
Office Supplies- debit
Repair Service Revenue- debit
Interest Payable- debit
Accounts Receivable- creditSalaries Expense- debit
Owner Capital- credit
Prepaid Insurance- debit
Buildings-debit
Interest Revenue-credit
Owner Withdrawals-debit
Unearned Revenue-credit
Account Payable-debit
Identify whether a debit or credit yields the indicated change for each of the following accounts.
To increase Store Equipment- debit
To increase Owner Withdrawals- credit
To decrease Cash- debit-
To increase Utilities Expense- debit
To increase Fees Earned- credit
To decrease Unearned Revenue-debit
To decrease Prepaid Insurance- debit
To increase Notes Payable- debit
To decrease Account Receivable- credit
To increase Owner Capital- credit
Identify whether the normal balances (in parentheses) assigned to the following accounts are correct or incorrect.
Office supplies (Debit)- correct
Owner Withdrawals (Credit)- correct
Fees Earned (Debit)- correct
Wages Expense (Credit)
Cash (Debit)- correct
Prepaid Insurance(Credit)- correct
Wages Payable (Credit)- correct
Building (Debit)-correct
Indicate whether a debit or credit decreases the normal balance of each of the following accounts:
Office Supplies - debit (correct)
Repair Service Revenue - credit
Interest Payable - credit
Accounts Receivable - debit (incorrect)
Salaries Expense - debit (correct)
Owner Capital - debit (incorrect)
Prepaid Insurance - credit
Buildings - credit
Interest Revenue - debit (correct)
Owner Withdrawals - debit (correct)
Unearned Revenue - debit
Account Payable - credit
Identify whether a debit or credit yields the indicated change for each of the following accounts:
To increase Store Equipment - debit (correct)
To increase Owner Withdrawals - debit
To decrease Cash - credit
To increase Utilities Expense - debit (correct)
To increase Fees Earned - credit (correct)
To decrease Unearned Revenue - debit
To decrease Prepaid Insurance - credit (correct)
To increase Notes Payable - credit
To decrease Accounts Receivable - debit (correct)
To increase Owner Capital - credit (correct)
Identify whether the normal balances (in parentheses) assigned to the following accounts are correct or incorrect:
Wages Expense (Credit) - incorrect
Cash (Debit) - correct
Prepaid Insurance (Credit) - correct
Wages Payable (Credit) - correct
Building (Debit) - correct
It seems like you have made a mistake in identifying the normal balance for "Wages Expense" account. Wages Expense has a normal debit balance, not a credit balance.
To double-check this, let's go through the process of determining the normal balance for each account:
- Office Supplies - debit (correct)
Normally, Office Supplies have a debit balance because they decrease when purchased.
- Repair Service Revenue - credit (correct)
Repair Service Revenue has a credit balance since it increases the owner's equity.
- Interest Payable - credit
Interest Payable has a credit balance because it represents an obligation to pay interest.
- Accounts Receivable - debit (correct)
Accounts Receivable typically has a debit balance because it represents amounts owed to the company.
- Salaries Expense - debit (correct)
Salaries Expense has a debit balance because it represents an expense incurred.
- Owner Capital - credit (correct)
Owner Capital has a credit balance as it represents the owner's equity in the business.
- Prepaid Insurance - debit (correct)
Prepaid Insurance has a debit balance as it represents an asset paid in advance.
- Buildings - debit (correct)
Buildings have a debit balance as they are assets.
- Interest Revenue - credit (correct)
Interest Revenue has a credit balance as it represents income earned.
- Owner Withdrawals - debit (correct)
Owner Withdrawals have a debit balance as they decrease the owner's equity.
- Unearned Revenue - credit (correct)
Unearned Revenue has a credit balance as it represents a liability for services or products not yet delivered.
- Accounts Payable - credit
Accounts Payable has a credit balance as it represents an obligation to pay vendors or suppliers.
Now, let's move on to the second set of questions about the impact of debits and credits on various accounts:
- To increase Store Equipment - debit (correct)
Debiting Store Equipment will increase its balance since it is an asset.
- To increase Owner Withdrawals - credit (correct)
Crediting Owner Withdrawals will increase this account's balance as it represents the owner taking money out of the business.
- To decrease Cash - debit (correct)
Debiting Cash will decrease its balance since cash is an asset.
- To increase Utilities Expense - debit (correct)
Debiting Utilities Expense will increase its balance since it represents an expense incurred.
- To increase Fees Earned - credit (correct)
Crediting Fees Earned will increase this account's balance as it represents revenue earned.
- To decrease Unearned Revenue - debit (correct)
Debiting Unearned Revenue will decrease its balance as the company fulfills its obligations.
- To decrease Prepaid Insurance - debit (correct)
Debiting Prepaid Insurance will decrease its balance as it represents an asset being used up.
- To increase Notes Payable - debit (correct)
Debiting Notes Payable will increase its balance since it represents a liability.
- To decrease Accounts Receivable - credit (correct)
Crediting Accounts Receivable will decrease its balance since it represents amounts owed to the company.
- To increase Owner Capital - credit (correct)
Crediting Owner Capital will increase this account's balance as it represents the owner's investment or additional equity.
Lastly, let's review the accuracy of the assigned normal balances:
- Office supplies (Debit) - correct
- Owner Withdrawals (Credit) - correct
- Fees Earned (Debit) - correct
- Wages Expense (Credit) - incorrect
Wages Expense should have a debit balance as it represents an expense.
- Cash (Debit) - correct
- Prepaid Insurance (Credit) - correct
- Wages Payable (Credit) - correct
- Building (Debit) - correct
I hope this clarifies any doubts you had.