Listed Below Are Selected Accounts

question 39

Essay

Listed below are selected accounts.In the blank spaces provided for each account,indicate what type of account it is,its normal balance,and the debit/credit rules for increasing and decreasing it.Use the following abbreviations for your answer:
$\begin{array}{lll}&\text { Normal } &\text { Rules to Increase or } \\\underline {\text { Type of Account } }&\underline {\text { Account Balance } }&\underline {\text { Decrease the Account } }\\{\mathrm{A}=\text { Asset } }& {\mathrm{Dr}=\mathrm{Debit}} & {\mathrm{Dr}=\mathrm{Debit}} \\\mathrm{L}=\text { Liability } & \mathrm{Cr}=\text { Credit } & \mathrm{Cr}=\mathrm{Credit} \\\mathrm{SE}=\text { Stockholders Equity } & &\\\mathrm{R}=\text { Revemue } \\\mathrm{E}=\text { Expense }\\\mathrm{D}=\text { Dividend }\\\end{array}$ $\begin{array}{|l|l|l|l|l|l|l|l|l|}\hline &&\text { Type of } && \text { Normual } && \text { Rule to } & &\text { Rule to } \\\hline&& \text { Account } && \text { Bahnce } && \text { Increase } && \text { Decrease } \\\hline \text { Example } & \text { A } &&Dr&&Dr&&Cr\\ \text { Cash } & \\\hline \text { a. } & \text { Accounts Payable } \\\hline \text { b. } & \text { Retained Earnings } \\\hline \text { c. } & \text { Prepaid Insurance } \\\hline \text { d. } & \text { Service Revenues } \\\hline \text { e. } & \text { Notes Payable } \\\hline \text { f. } & \text { Intangibles } \\\hline \text { g. } & \text { Common Stock } \\\hline \text { h. } & \text { Salary Expense } \\\hline \text { i. } & \text { Accounts Receivable } \\\hline \text { j. } & \text { Unearned Revenues } \\\hline\end{array}$

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Definitions:

Consolidated Common Stock

Represents the aggregation of common stock of a parent company and its subsidiaries, shown in the consolidated financial statements.

Acquisition Transaction

An acquisition transaction involves one company purchasing most or all of another company's shares to gain control of that company.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to a share of the company's profits through dividends and/or capital appreciation.

Par Value

A nominal value assigned to share certificates of a company, which has no impact on market value but may affect legal capital.