The following is a list of ledger account titles extracted from the general ledger of J. Wendall,
Question:
The following is a list of ledger account titles extracted from the general ledger of J. Wendall, marketing consultant:
Wages and Salaries Interest Cash at Bank J. Wendall, Capital Accounts Payable Land (Under Mortgage) Furniture Accounts Receivable | Motor Vehicles Rent Mortgage Payable Consultancy Fees Investments Computers Inventory, Marketing Materials |
Required
A. Identify each of the ledger accounts as either an asset, a liability, an income or an expense account. If you think that any of the accounts might fit into more than one of these categories, explain why.
B. For each of the accounts listed, indicate (a) whether increases are recorded as debits or credits and (b) whether the normal balance is a debit or a credit.
Step by Step Answer:
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett