For the Accounts Listed Below Indicate If the Normal Balance

question 65

Essay

For the accounts listed below indicate if the normal balance of the account is a debit or credit. $\begin{array}{lrr}&\text {Normal Balance}\\ \underline{\text { Accounts }}& \underline{\text { Debit or Credit}}\\ \text { 1. Service Revenue} &\underline{\quad\quad\quad\quad}\\ \text {2. Rent Expense } &\underline{\quad\quad\quad\quad}\\ \text { 3. Accounts Receivable } &\underline{\quad\quad\quad\quad}\\ \text { 4. Accounts Payable} &\underline{\quad\quad\quad\quad}\\ \text { 5. Owner's Capital } &\underline{\quad\quad\quad\quad}\\ \text {6. Supplies } &\underline{\quad\quad\quad\quad}\\ \text { 7. Insurance Expense } &\underline{\quad\quad\quad\quad}\\ \text {8. Owner's Drawings } &\underline{\quad\quad\quad\quad}\\ \text { 9. Buildings } &\underline{\quad\quad\quad\quad}\\ \text { 10. Notes Payable} &\underline{\quad\quad\quad\quad}\\\end{array}$

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Definitions:

Bond Discounts

The financial difference observed when a bond's selling price is less than its stated face value upon sale.

Effective-Interest Method

A way of calculating the amortized cost of a bond and the amount of interest expense over its relevant period.

Interest Expense

The cost incurred by an entity for borrowed funds, often reflected in financial statements.

Market Rate

The market rate refers to the current price or interest rate of a commodity, security, labor, or currency in the marketplace.