Indicate whether a debit or credit decreases the normal balance of each of the following accounts:
a. Office Supplies e. Salaries Expense i. Interest Revenue
b. Repair Services Revenue f. Owner Capital j. Owner Withdrawals
c. Interest Payable g. Prepaid Insurance k. Unearned Revenue
d. Accounts Receivable h. Buildings l. Accounts Payable
Assistance needed.
Office Supplies is a credit
Repair Services Revenue is a debit
Interest Payable is a debit
Accounts Receivalbe is a credit
Salaries Expense is a credit
Owner Capital is a debit
Prepaid Insurance is a credit
Buildings is a credit
Interest Revenue is a debit
Owner Withdrawals are a credit
Accounts Payable is a debit.
Unearned Revenue is a credit
a. Debit - Office Supplies
b. Credit - Repair Services Revenue
c. Credit - Interest Payable
d. Credit - Accounts Receivable
e. Debit - Salaries Expense
f. Credit - Owner Capital
g. Debit - Prepaid Insurance
h. Debit - Buildings
i. Credit - Interest Revenue
j. Debit - Owner Withdrawals
k. Credit - Unearned Revenue
l. Credit - Accounts Payable
To determine whether a debit or credit decreases the normal balance of each account, we need to consider the type of account and how it is affected by transactions.
1. Office Supplies: The normal balance of this account is a debit. Debits increase the balance, so a credit would decrease the balance.
2. Repair Services Revenue: The normal balance of this account is a credit. Credits increase the balance, so a debit would decrease the balance.
3. Interest Payable: The normal balance of this account is a credit. Credits increase the balance, so a debit would decrease the balance.
4. Accounts Receivable: The normal balance of this account is a debit. Debits increase the balance, so a credit would decrease the balance.
5. Salaries Expense: The normal balance of this account is a debit. Debits increase the balance, so a credit would decrease the balance.
6. Owner Capital: The normal balance of this account is a credit. Credits increase the balance, so a debit would decrease the balance.
7. Prepaid Insurance: The normal balance of this account is a debit. Debits increase the balance, so a credit would decrease the balance.
8. Buildings: The normal balance of this account is a debit. Debits increase the balance, so a credit would decrease the balance.
9. Interest Revenue: The normal balance of this account is a credit. Credits increase the balance, so a debit would decrease the balance.
10. Owner Withdrawals: The normal balance of this account is a debit. Debits increase the balance, so a credit would decrease the balance.
11. Unearned Revenue: The normal balance of this account is a credit. Credits increase the balance, so a debit would decrease the balance.
12. Accounts Payable: The normal balance of this account is a credit. Credits increase the balance, so a debit would decrease the balance.
By applying the rules of debits and credits, we can determine whether a debit or credit would decrease the normal balance of each account.