Question

Boyd Docker has just rented space in a strip mall. In this space, he will open a photography studio, to be called SnapShot! A friend has advised Boyd to set up a double-entry set of accounting records in which to record all of his business transactions.
Indicate whether the normal balance of each account is a debit or credit. Balance Cash select between debit and credit Supplies select between debit and credit Notes Payable select between debit and credit Equipment select between debit and credit Accounts Payable select between debit and credit Common Stock select between debit and credit

Answer 1

Answer and Explanation:

The normal balance of each account is a debit or credit is shown below:-

Accounts              Normal balance           Reason

Cash                        Debit                     Being an asset

Supplies                   Debit                     Being an asset

Note payable         Credit                      Being a liability

equipment              Debit                      Being an asset

accounts payable  Credit                      Being a liability

common stock      Credit                     Being an equity account

Therefore as per the balance sheet cash, supplies and equipment are the normal debit balance of assets while notes payable, accounts payable and common stock are the normal credit balance of liabilities on the balance sheet.