Question

State for each account whether it is likely to have debit entries only, credit entries only, or both debit and credit entries. Also, indicate its normal balance. Typical Entries Normal Balance 1. Accounts Payable 2. Cash 3. Dividends 4. Miscellaneous Expense 5. Insurance Expense 6. Fees Earned

Answer 1

Answer:

Account payable: both

Cash: both

Dividends: debit

Miscellaneous Expense: debit

Insurance expense: debit

Fees Earned: credit

Explanation:

Account payable will have a normal credit balance.

It will be credited when a purchases on account are made.

And debited when payment on this accounts occurs.

Cash: represent the cash of the company

It increase when collected or received. And decrease when used on payment.

Dividends: debit, only used when dividends are declared

Miscellaneous Expense: debit each time a common expense is made

Insurance expense: debit each time it is accrued through time the expired portion of the insurance policy.

Fees Earned: credit each time the company earns from providing their services.