This exercise will test your understanding of the debit and credit rules.
A list of accounts appears below:
| |
|
Debit
|
Credit
|
|
1.
|
Cash
|
√
|
|
|
2.
|
Sales Revenue
|
|
|
|
3.
|
Commissions Expense
|
|
|
|
4.
|
Advertising Expense
|
|
|
|
5.
|
Salaries and Wages Payable
|
|
|
|
6.
|
Prepaid Insurance
|
|
|
|
7.
|
Property Taxes Payable
|
|
|
|
8.
|
Property Tax Expense
|
|
|
|
9.
|
Dividends
|
|
|
|
10.
|
Interest Revenue
|
|
|
|
11.
|
Salaries and Wages Expense
|
|
|
|
12.
|
Commissions Revenue
|
|
|
|
13.
|
Unearned Service Revenue
|
|
|
|
14.
|
Equipment
|
|
|
|
15.
|
Note Payable
|
|
|
|
16.
|
Building
|
|
|
|
17.
|
Accounts Payable
|
|
|
|
18.
|
Land
|
|
|
|
19.
|
Accounts Receivable
|
|
|
|
20.
|
Common Stock
|
|
|
Instructions
For each account, put a check mark (√) in the appropriate column to indicate if it is increased by an entry in the debit (left) side of the account or by an entry in the credit (right) side of the account. The first one is done for you.
TIP: In essence, you are being asked to identify the normal balance of each of the accounts listed. The normal balance of an account is the side where increases are recorded.