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Answer #1

For each of the following (1) identify the type of account as an Asset, Liability, Equity, Revenue, or Expense, (2) identify its normal balance, (3) using DR (Debit) or CR (Credit)--identify the kind of entry that would increase its account balance, and (4) note on which financial statement(s) it appears . Use an Excel spreadsheet to set up your solution.

a. Rent

 

b. Accrued Rent

 

c. Prepaid Rent

 

d. Rental Security Deposits

 

e. Accounts Receivable

 

f. Sales

 

g. Owner’s Withdrawals

 

h. Prepaid Insurance

 

i. (Expiring) Insurance Premiums

 

j. Withheld Payroll Taxes

 

k. Business’s Share of Payroll Taxes

 

l. Cash

 

m. Accounts Payable

 

n. Merchandise Inventory

 

o. Merchandise Purchases

 

p. Common Stock

 

q. Dividends

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