EX 2-6 Normal balances of accounts

Identify each of the following accounts of Kaiser Services Co. as asset, liability, stockholders’ equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit:

a. Accounts Payable

b. Accounts Receivable

c. Cash

d. Common Stock

e. Dividends

f. Fees Earned

g. Office Equipment

h. Rent Expense

i. Supplies

j. Wages Expense

Answer:

a. Liability—credit

b. Asset—debit

c. Asset—debit

d. Stockholders’ equity (Common Stock)—credit

e. Stockholders’ equity (Dividends)—debit 

f. Revenue—credit 

g. Asset—debit 

h. Expense—debit 

i. Asset—debit 

j. Expense—debit