Problem: In columns (a) and (b) indicate whether the change in the account would be recorded as a debit or a credit and whether the normal balance of the account is a debit or a credit. In column (c) indicate if the basic type of account is Asset, Liability or Stockholder’s Equity.
|
(a)
|
(b )
|
(c)
|
|
|
Recorded
|
Normal
|
Basic
|
|
|
As
|
Balance
|
Account
|
|
Increase in Common Stock
|
Credit
|
Credit
|
Stockholders' Equity
|
|
Increase in Dividends
|
|
|
|
|
Decrease in Accounts Receivable
|
|
|
|
|
Increase in Note Payable
|
|
|
|
|
Increase in Accounts Payable
|
|
|
|
|
Decrease in Supplies
|
|
|
|
|
Decrease in Salaries Expense
|
|
|
|
|
Decrease in Retained Earnings
|
|
|
|
|
Increase in Cash
|
|
|
|
|
Decrease in Land
|
|
|
|