Question

For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance.

Debit Effect Credit Effect Normal Balance
1. Salaries and Wages Expense select an option select an option select an option
2. Accounts Receivable select an option select an option select an option
3. Service Revenue select an option select an option select an option
4. Dividends select an option select an option select an option
5. Retained Earnings

Answer 1

Answer and Explanation:

As we know that

The assets, expenses, and the dividend contains the debit normal balance while the liabilities, revenues and the stockholder equity contains the credit normal balance

Based on this, the classification are as follows

Particulars Debit Effect Credit Effect Normal Balance

(1) Salaries and Wages Expense Increase Decrease Debit

(2) Accounts Receivable Increase Decrease Debit

(3)Service Revenue Decrease Increase Credit

(4) Dividends Increase Decrease Debit

(5 Retained Earnings Decrease Increase Credit