Question

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

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