EX 2-5 Normal entries for accounts During the month, Gates Labs Co. has a substantial number of transactions affecting following accounts. State for each account whether it is likely to have (a) debit entri credit entries only, or (c) both debit and credit entries. 1. Accounts Payable ! 5. Insurance Expense a 2. Accounts Receivable a 6. Dividends 3. Cash a 7. Utilities Expense a 4. Fees Earned Save PQQ- Angela Bums c. $5,000 d. $ 8,000 8. The difference between the balance of a fixed asset account and the related accumulated depreciation account is termed a historical cost b. contra asset c. book value c. market value 9. Smokey Company purchases a one-year insurance policy on July 1 for $3,600. The adjusting entry on December 31 is a. debit Insurance Expense, $1,800; credit Prepaid Insurance, $1,800 b. debit Insurance Expense, $1,500; credit Prepaid Insurance $1,500 c. debit Insurance Expense, $2,100; credit Prepaid Insurance, $2,100 d. debit Prepaid Insurance, $1,800; credit Cash, $1,800 10. Accumulated Depreciation and Depreciation Expense are classified, respectively, as a. expense, contra asset b. asset contra liability c. revenue, asset d. contra asset, expense