STUDENT: John Vacky B.

Bantugan COURSE: 1st year BS in Accountancy

CODE: ACC111 (459)

LET’S CHECK
Activity 8: Knowing the elements and its classification is not enough you have to understand the normal
balances for you to correctly analyze the effect in the accounting equation. This activity will test your
understanding on the normal balances of the elements of FS. A perfect score is required. The first item is
answered for your reference.

ACCOUNT TITLES NORMAL INCREASE DECREASE

BALANCE
EXAMPLE CASH DR DR CR
1 Accounts Payable CR CR DR
2 Accrued Expense CR CR DR
3 Accumulated depreciation CR CR DR
4 Advertising Expense DR DR CR
5 Allowance for doubtful accounts CR CR DR
6 Copyright DR DR CR
7 Depreciation Expense DR DR CR
8 Doubtful Account Expense DR DR CR
9 Drawing DR DR CR
10 Franchise DR DR CR
11 Freight in DR DR CR
12 Furniture and Fixtures DR DR CR
13 Income tax Payable CR CR DR
14 Interest Income CR CR DR
15 Interest Receivable DR DR CR
16 Internet Fees CR CR DR
17 Land DR DR CR
18 Land held for speculation DR DR CR
19 Light, water and communication DR DR CR
expense
20 Machineries DR DR CR
21 Mortgage Payable CR CR DR
22 Notes Payable CR CR DR
23 Notes Receivable DR DR CR
24 Office Equipment DR DR CR
25 Owner’s Capital CR CR DR
26 Prepaid Advertising DR DR CR
27 Prepaid Insurance DR DR CR
28 Professional Fees CR CR DR
29 Purchases DR DR CR
30 Refundable Deposit DR DR CR
31 Rent Expense DR DR CR
32 Representation Expense DR DR CR
33 Salaries and Wages DR DR CR
34 Sales CR CR DR
35 Supplies DR DR CR
36 Supplies Expense DR DR CR
37 Taxes and Licenses DR DR CR
38 Transportation Expense DR DR CR
39 Unearned Income CR CR DR
40 Withholding Tax Payable CR CR DR