Question

1. Identify each account as an asset​ (A), liability​ (L), or equity​ (E).

2. Identify whether the account is increased with a debit​ (DR) or credit​ (CR).
3. Identify whether the normal balance is a debit​ (DR) or credit​ (CR)(a) Interest Revenue (b) Accounts Payable (c) Calhoun, Capital (d) Office Supplies (e) Advertising Expense (f) Unearned Revenue (g) Prepaid Rent

Answer 1

Interest Revenue: Income, Credit balance, credit increases the balance, debit reduces such balance

Accounts Payable: Liability, Credit balance, credit increases the balance, debit reduces such balance

Calhoun Capital: Equity, Credit balance, Credit increases the balance, debit reduces such balance

Office Supplies: Asset, Debit balance, Debit increases the balance, credit reduce such balance

Advertising Expense: Expense, Debit balance, debit increases the balance, credit reduces such balance

Unearned Revenue: Liability, Credit balance, credit increases the balance, debit reduces such balance

Prepaid Rent: Asset, Debit balance, Debit increases the balance, credit reduces such balance