Question

For each of the following accounts, indicate the effect of a debit or credit on the account and the normal balance. Debit Effect Credit Effect Normal Balance a. Bonds Payable. select between increase and decrease select between increase and decrease select between credit and debit b. Unearned Service Revenue. select between increase and decrease select between increase and decrease select between credit and debit c. Depreciation Expense. select between increase and decrease select between increase and decrease select between credit and debit d. Common Stock. select between increase and decrease select between increase and decrease select between credit and debit e. Buildings. select between increase and decrease select between increase and decrease select between credit and debit f. Rent Revenue.

Answer 1

Answer:

                                             Debit  Credit  

A Bonds payable                    Decrease Increase  

b. Unearned Service Revenue Decrease Increase  

c. Depreciation Expense      Increase Decrease      

d. Common Stock                    Decrease Increase  

e. Buildings.                            Increase Decrease  

f. Rent Revenue.                   Decrease Increase  

 

Explanation:

Debit  Credit  

A Bonds payable Decrease Increase  

Bonds payable are a form of long term debt usually issued by corporations, hospitals, and governments.    

b. Unearned Service Revenue Decrease Increase  

Unearned Service Revenue is a liability account that is used to record advanced collections from clients. In other words, it pertains to revenue already collected but the service has not yet been rendered    

c. Depreciation Expense Increase Decrease  

Depreciation expense is the amount of depreciation that is reported on the income statement.    

d. Common Stock Decrease Increase  

Common stock is a security that represents ownership in a corporation.    

e. Buildings.  Increase Decrease  

A building, or edifice, is a structure with a roof and walls standing more or less permanently in one place, such as a house or factory    

f. Rent Revenue. Decrease Increase  

Rent Revenue is the title of an income statement account which (under the accrual basis of accounting) indicates the amount of rent that has been earned during the period of time indicated in the heading of the income statement.