EX 2-5 Normal entries for accounts

During the month, Gates Labs Co. has a substantial number of transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries.

1. Accounts Payable

2. Accounts Receivable

3. Cash

4. Fees Earned

5. Insurance Expense

6. Dividends 

7. Utilities Expense

Answer:

1. debit and credit entries (c) 

2. debit and credit entries (c) 

3. debit and credit entries (c) 

4. credit entries only (b) 

5. debit entries only (a) 

6. debit entries only (a) 

7. debit entries only (a)