Question

Brief Exercise 161

For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance.

		Debit	Credit	Normal Balance
1.	Salaries and wages expense.	IncreaseDecrease	IncreaseDecrease	DebitCredit
2.	Accounts receivable.	IncreaseDecrease	IncreaseDecrease	DebitCredit
3.	Service revenue.	IncreaseDecrease	DecreaseIncrease	DebitCredit
4.	Owner's Capital.	IncreaseDecrease	DecreaseIncrease	CreditDebit
5.	Owner's Drawings.	IncreaseDecrease	DecreaseIncrease	DebitCredit

Answer 1

All expenses, Assets and Owner's Drawings have normal debit balances.

Increase in expenses, Assets and Owner's Drawings, is debited and decrease is credited.

All liabilities, Revenues and Owner's Capital have normal credit balances.

Increase in liabilities, Revenues and Owner's Capital, is credited and decrease is debited.

		Debit	Credit	Normal Balance
1.	Salaries and wages expense.	Increase	Decrease	Debit
2.	Accounts receivable.	Increase	Decrease	Debit
3.	Service revenue.	Decrease	Increase	Credit
4.	Owner's Capital.	Decrease	Increase	Credit
5.	Owner's Drawings.	Increase	Decrease	Debit