Final answer:
The account with a normal debit balance from the options provided is treasury stock, as it is a contra equity account, contrary to other equity accounts that have credit balances.
Step-by-step explanation:
Among the options provided, treasury stock is the account with a normal debit balance in accounting. The normal balance of an account indicates whether increases in that account are recorded as debits or credits. In the case of treasury stock, which represents the company's repurchased shares, it is considered a contra equity account. Contra equity accounts have balances opposite to those of regular equity accounts.
Equity accounts such as preferred stock, common stock, and paid-in capital in excess of stated value typically have a credit balance. These accounts reflect the ownership interest of shareholders and contribute to the overall equity of the company. On the other hand, treasury stock, being a contra equity account, carries a normal debit balance. This means that when a company repurchases its own shares, it records the transaction by debiting the treasury stock account.
Understanding the normal balances of different accounts is fundamental in the double-entry accounting system. It guides the recording of financial transactions and ensures accurate representation of a company's financial position in its balance sheet. In the case of treasury stock, a debit balance reflects the reduction in the overall equity of the company due to share repurchases.