Accounting Review Problems: 1. What is the normal balance of the below accounts: Cash Accounts Receivable Purchase Discounts Inventory Prepaid Rent Sales Returns Retained Earnings Unearned Revenue Purchases Dividends 2. What side of the above accounts increase or decrease the account? 3. Does a debit increase or decrease the above accounts? 4. Classify the above accounts: 5. Name some adjusting entries: accruals, deferrals 6. How do you classify Cost of Goods Sold? 7. How do you make the depreciation adjustment entry and how does this 'entry effect the overall financial statements? Book to Bank method of the Bank reconciliation Equipment costing $35,000 with a book value of 10,000 was sold for $11,500. 8. 9. What is the journal entry for the sale? Is there a gain or loss? 10. Prepare the adjusting entry for bad debts if you use the % of sales methods and the below facts are given: Credit and Cash Sales 100,000 Sales Returns and Allowances are $30,000. % ofnet sales 2% for bad debt method. 11.Calculate interest on the note we owe: We took the note (loan) of $10,000 on November 14, we want the adjustment for November 30, The interest rate is 10%. 12. Deolare dividends and later pay the dividents