EX 2-3 Chart of accounts Obj. LeadCo School is a newly organized business that teaches people how to inspire and influence others. The list of accounts to be opened in the general ledger is as follows: Accounts Payable Prepaid Insurance Accounts Receivable Rent Expense Cash Retained Earnings Common Stock Supplies Dividends Supplies Expense Equipment Unearned Rent Fees Earned Wages Expense Miscellaneous Expense List the accounts in the order in which they should appear in the ledger of LeadCo School and assign account numbers. Each account number is to have two digits: the first digit is to indicate the major classification (1 for assets, etc.), and the second digit is to identify the specific accoun within each major classification (11 for Cash, etc.). EX 2-4 Rules of debit and credit Obj. 1, a The following table summarizes the rules of debit and credit. For each of the items a through indicate whether the proper answer is a debit or a credit. Increase Decrease Normal Balance Balance sheet accounts: Asset Credit Liability Credit c) (d) Stockholders' equity Common Stock Credit le) f) Retained Earnings ig) (h) Credit Dividends Debit Credit Income statement accounts: Revenue Credit Expense Credit Debit se EX 2-5 Normal entries for accounts Obj. 2 During the month, Gates Labs Co. has a substantial number of transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (e) both debit and credit entries. 1. Accounts Payable 5. Insurance Expense 2. Accounts Receivable 6. Dividends 3. Cash 7. Utilities Expense 4. Fees Earned EX 2-6 Normal balances of accounts Obj. 1, 2 Identify each of the following accounts of Liken Services Co, as asset, liability, stockholders' equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit: a. Accounts Payable f. Fees Earned b. Accounts Receivable Cash h. Rent Expense d. Common Stock 1. Supplies e Dividends J. Utilities Expense 9. Land