Question

Indicate whether a debit or credit decreases the normal balance of each of the following accounts.

Answer 1

Answer:

__________________Increase ___Decrease ___ Normal balance

a. Postage Expense__ Debit ______ Credit ______ Debit

b. Utilities Payable___ Credit ______Debit _______Credit

c. Prepaid Insurance__Debit ______ Credit ______ Debit

d. Janitorial Expense __Debit ______Credit ______ Debit

e. Advertising Expense  Debit ______Credit ______ Debit

f. Rent Payable______ Credit ______Debit _______Credit

g. Prepaid Parking ____Debit ______ Credit ______ Debit

h. Fuel Expense ______Debit ______Credit ______ Debit

i. Accounts Receivable _Debit ______Credit ______ Debit

j. Service Revenue____Credit ______ Debit _______Credit

k. Unearned Revenue_ Credit ______ Debit _______Credit

l. Warehouse________ Debit ______ Credit _______ Debit

Explanation:

Debit Balance

All the Assets and Expense has the Normal debit balance that is increased by the debit entry and decreased by the credit entry.

The followings are the account with debit balances.

Expenses

a. Postage Expense

d. Janitorial Expense

e. Advertising Expense

h. Fuel Expense

Assets

c. Prepaid Insurance

g. Prepaid Parking  

i. Accounts Receivable

l. Warehouse

Credit Balance

All the Revenue, Liabilities, and Equity accounts have the Normal credit balance that is increased by the credit entry and decreased by the debit entry.

The followings are the account with credit balances.

Liabilities

b. Utilities Payable

f. Rent Payable

k. Unearned Revenue

Revenue

j. Service Revenue