Normal Balances
What is the normal balance of cash?
Debit
Jan purchased $300 worth of office supplies. Which accounts are affected?
Cash
Office Supplies
What are the three owner's equity accounts?
Capital, withdrawals, income summary
What is the normal balance of C. Joe, Withdrawals?
debit
The business performed services for Food Supplies Inc on account. Which accounts will be debited and credited?
Accounts Receivable DR
Revenue CR
Which category is prepaid insurance in?
assets
The left side of the t account is the ?
Debit side
Name four types of asset accounts for a pizza business
Examples: land, equipment, furniture, supplies
True or false: When an account decreases on the debit side that means that that same side is the normal balance.
false
The owner paid salaries of his staff for the month. Which account is debited?
Salary Expense
What category is accounts payable in?
Liability
An increase to an expense account _____ owner's equity
Decreases
Bought computer on account from Ace Inc. for $1,100. What is the debit and the credit for this transaction?
Computer debit $1,000
Accounts Payable credit for $1,000
The 3 account titles that would be increased by a credit are:
accounts payable, capital, and revenue
Received cash on account. What two accounts are impacted & in what way?
Cash DR
Accounts Receivable CR
Fees earned is in what category?
Revenue
Your transaction has been recorded correctly if
Your accounting equation still balances
What is the order of account categories on the chart of accounts?
assets, liabilities, owner's equity, revenue, expenses
Which 3 account categories increase on the debit side, and decrease on the credit side?
cash, expenses, and withdrawals
How would an investment by owner impact the related t-accounts
Debit to cash (increase)
Credit to capital account (increase)
How is owners equity broken down into categories?
capital, withdrawals, revenue, expenses
If my debits do not equal my credits I know that
I did something wrong!
You are paying for rent, advertising, internet, and other misc costs. What accounts are being debited and credited? How do you know if your transaction is recorded correctly?
Debit-
Rent Expense
Advertising Expense
Communication Expense
Misc Expense
Credit-
Cash
Your credits and debits should be equal.