Question

For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense, (2) identify the normal balance of the account, and (3) select debit (Dr.) or credit (Cr.) to identify the kind of entry that would increase the account balance

Account Type of Account Normal Balance Increase (Dr. or Cr.)
a. Fees Earned
b. Equipment
c. Notes Payable
d. Owner Capital
e. Cash
f. Legal Expense
g. Prepaid Insurance
h. Land
i. Accounts Receivable
j. Owner Withdrawals
k. License Fee Revenue
l. Unearned Revenue

Answer 1

a. Fees Earned REVENUE, CREDIT

b. Equipment ASSET, DEBIT

c. Notes Payable LIABILITY, CREDIT

d. Owner Capital EQUITY, CREDIT

e. Cash ASSET, DEBIT

f. Legal Expense EXPENSE, DEBIT

g. Prepaid Insurance ASSET, DEBIT

h. Land ASSET, DEBIT

i. Accounts Receivable ASSET, DEBIT

j. Owner Withdrawals (CONTRA) EQUITY, DEBIT

k. License Fee Revenue REVENUE, CREDIT

l. Unearned Revenue LIABILITY, CREDIT