Reference no: EM13333148
Each account has a normal balance. For the following list of accounts, indicate whether the normal balance of each is a debit or a credit.
Account Normal Balance
1. Cash _______
2. Prepaid Insurance _______
3. Retained Earnings _______
4. Bonds Payable _______
5. Investments _______
6. Capital Stock _______
7. Advertising Fees Earned _______
8. Wages and Salaries Expense _______
9. Wages and Salaries Payable _______
10. Office Supplies _______
11. Dividends _______
Prepare the journal entry to record each of the following independent transactions. (Use the number of the transaction in lieu of a date for identification purposes.)
1. Services provided on account of $1,530
2. Purchases of supplies on account for $1,365
3. Services provided for cash of $750
4. Purchase of equipment for cash of $4,240
5. Issuance of a promissory note for $2,500
6. Collections on account for $890
7. Sale of capital stock in exchange for a parcel of land; the land is appraised at $50,000
8. Payment of $4,000 in salaries and wages
9. Payment of open account in the amount of $500
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