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Fundamentals of Financial Management, Concise Edition10th EditionEugene F. Brigham, Joel Houston 777 solutions 95. The classification and normal balance of the drawing account is A. an expense with a credit balance B. an expense with a debit balance C. a liability with a credit balance D.owner's equity with a debit balance 96. Which of the following accounts are debited to record increase in balances? A. assets and liabilities B. drawing and liabilities C. expenses and liabilities D.assets and expenses 97. In which of the following types of accounts are increases recorded by credits? A.revenues and liabilities B. drawing and assets C. liabilities and drawing D. expenses and liabilities 98. In which of the following types of accounts are decreases recorded by debits? A. assets B.revenues C. expenses D. drawing 99. In which of the following types of accounts are decreases recorded by credits? A. liabilities B. owner's capital C.drawing D. revenues 100. A credit balance in which of the following accounts would indicate a likely error? A. Fees Earned B.Salary Expense C. Janet James, Capital D. Accounts Payable We have textbook solutions for you!The document you are viewing contains questions related to this textbook. Financial Accounting: The Impact on Decision Makers Norton/Porter 101. A debit balance in which of the following accounts would indicate a likely error? A. Salaries Expense B.Notes Payable C. Edgar Martin, Drawing D. Supplies 102. Randomly listed below are the steps for preparing a trial balance: (1) Verify that the total of the Debit column equals the total of the Credit column. (2) List the accounts from the ledger and enter their debit or credit balance in the Debit or Credit column of the trial balance. (3) List the name of the company, the title of the trial balance, and the date the trial balance is prepared. (4) Total the Debit and Credit columns of the trial balance. What is the proper order of these steps?A.(3), (2), (4), (1)B. (2), (3), (4), (1)C. (3), (2), (1), (4)D. (4), (3), (2), (1)103. Which of the following entries records the payment of an account payable? A. debit Cash; credit Accounts Payable B. debit Accounts Receivable; credit Cash C. debit Cash; credit Supplies Expense D.debit Accounts Payable; credit Cash 104. Which of the following entries records the investment of cash by Ron York, owner of a proprietorship? A. debit Ron York, Capital; credit Accounts Receivable B.debit Cash; credit Ron York, Capital C. debit Ron York, Drawing; credit Cash D. debit Cash; credit Ron York, Drawing 105. Which of the following entries records the receipt of a utility bill from the water company? A.debit Utilities Expense; credit Accounts Payable B. debit Utilities Payable; credit Accounts Receivable C. debit Accounts Payable; credit Cash D. debit Accounts Payable; credit Utilities Payable What is the classification of a drawing account?The drawing account is a contra equity account, and is therefore reported as a reduction from total equity in the business. Thus, a drawing account deduction reduces the asset side of the balance sheet and reduces the equity side at the same time.
What is the normal balance side of a drawing account?The balance of a drawing account represents the total value of assets taken out of a business by the owner. 18. The left side of a liability account is the normal balance side because liabilities are on the left side of the accounting equation.
What is the normal balance of the owner's drawing account?An account's assigned normal balance is on the side where increases go because the increases in any account are usually greater than the decreases. Therefore, asset, expense, and owner's drawing accounts normally have debit balances. Liability, revenue, and owner's capital accounts normally have credit balances.
What is the balance of drawing account?The drawing account represents a reduction of the business' assets, as the assets in question are withdrawn and transferred to the owner for personal use.
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The classification and normal balance of the drawing account are
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