Response to the following questions:
1. What types of accounts are closed by transferring their balances (a) as a debit to Retained Earnings, (b) as a credit to Retained Earnings?
2. During the month, Gilbert Labs Co. has a substantial number of transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries.
1. Accounts Payable
2. Accounts Receivable
3. Cash
4. Fees Earned
5. Dividends
6. Miscellaneous Expense
7. Supplies Expense.