com the major classification ( for SSCUS, C.), within each major classification (11 for Cash, etc.). EX 2-4 Rules of debit and credit Obj. 1,2 The following table summarizes the rules of debit and credit. For each of the items a through 1, indicate whether the proper answer is a debit or a credit. Increase Decrease Normal Balance Balance sheet accounts: Asset (a) Credit (b) Liability Credit (c) Stockholders' equity: Common Stock Credit (e) (f) Retained Earnings (9) (h) Credit Dividends Debit Credit Income statement accounts: Revenue Credit Expense Credit Debit (d) (k) EX 2-5 Normal entries for accounts Obj. 2 During the month, Gates Labs Co. has a substantial number of transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or () both debit and credit entries. 1. Accounts Payable 5. Insurance Expense 2. Accounts Receivable 6. Dividends 3. Cash 7. Utilities Expense 4. Fees Earned EX 2-6 Normal balances of accounts Obj. 1,2 Identify each of the following accounts of Liken Services Co. as asset, liability, stockholders' equity, revenue, or expense, and state in each case whether the normal balance is a debit or a credit: Accounts Pavahle f Fees Farned