1 of 4 A company receives $500 of cash as an additional investment in the company by its owner, Mary Smith. The company's Cash account is increased and Mary Smith Capital is increased. 1. Should the $500 entry to the Cash account be a debit? Yes or No 2. Should the $500 entry to Mary Smith, Capital be a debit? Yes or No Use the following information for questions 3 through 6: A company using the accrual method of accounting performed services on account in August. The services were for $2,000 and the company gave the customer credit terms that state the amount is to be paid to the company in September. 3. Assuming that the company prepares monthly income statements, what will be the account debited for $2,000 in August? Cash Accounts Receivable Service Revenue 4. Which account should the company credit for $2,000 in August? Cash Accounts Receivable Service Revenue 5. In September when the company receives the $2,000 from the customer, which account should the company debit? Cash Accounts Receivable Service Revenue In September when the company receives the $2,000 from the customer, which account should the company credit? Cash Accounts Receivable Service Revenue 7.To increase the balance in the following accounts, would you debit the account or would you credit the account? 7 a) Accounts Payable Debit Credit 8) Cash Debit Credit 9) Land Debit Credit 10)Notes Payable Debit Credit 11) Accounts Receivable Debit Credit 12) Mary Smith, Capital Debit Credit 13)Supplies Debit Credit 14) Supplies Expense Debit Credit 15) Prepaid Insurance Debit Credit 16)Service Revenue Debit Credit 17)Mary Smith, Drawing Debit Credit 18)Equipment Debit Credit 19)Unearned Revenue Debit Credit 20.To decrease the balance in the following accounts, would you debit the account or would you credit the account? 20 a) Accounts Payable Debit Credit 21) Cash Debit Credit 22 )Land Debit Credit 23) Notes Payable Debit Credit 24 )Accounts Receivable Debit Credit 25) Mary Smith, Capital Debit Credit 26) Supplies Debit Credit 27) Supplies Expense Debit Credit 28) Prepaid Insurance Debit Credit 29) Service Revenue Debit Credit 30) Mary Smith, Drawing Debit Credit 31) Equipment Debit Credit 32) Unearned Revenue Debit Credit 33.What is the normal balance for the following accounts? 33 a) Accounts Payable Debit Credit 34) Cash 35) Land 36) Notes Payable Debit Credit Debit Credit Debit Credit 37) Accounts Receivable Debit Credit 38) Mary Smith, Capital Debit Credit 39) Supplies Debit Credit 40) Supplies Expense Debit Credit 41) Prepaid Insurance Debit Credit 42) Service Revenue Debit Credit 43) Mary Smith, Drawing Debit Credit 44) Equipment Debit Credit 45) Unearned Revenue Debit Credit 46. Generally when an expense is involved in a transaction, an expense will be Debited Credited 47. Generally when revenues are involved in a transaction, a revenue account will be Debited Credited 48. The accountant's word to indicate that an entry will be recorded on the left-side of an account is Debit Credit 49. A contra-asset account such as Accumulated Depreciation will likely have which balance? Debit 50. Credit A contra-liability account such as Discount on Notes Payable will likely have which balance? Debit Credit