Generally speaking on a balance sheet Debits are good and Credits are bad. IE Debiting PP&E is good and Crediting Long term debt is bad. Cr Cash is bad, but Dr Long Term debt reduces what we owe and that is good.

On the income statement it is the opposite. We Dr COGS reducing our income for expenses (bad), but we Cr Revenue to increase our profit (Good).

With this in mind pleases indicate whether a Dr or Cr are needed to increase and decrease account and whether it is a balance sheet or income statement account.

Increase Dr Decrease CR BS or IS BS Account Example: Cash Wages Payable Prepaid Insurance Depreciation Expense Interest Expense Prepaid Insurance Goodwill Treasury Stock Preferred Stock Unearned Revenues Securities available for sale Sales Retained Earnings Taxes payable