+ Determine if the normal balance is a Debit (D) or a Credit (C). Input only the first letter of the answer (D or C). 1 2 3 4 Normal Balance D or C Account Account receivable Retained earnings Salaries payable Cost of Vitilities 5 Service revenue D Use the following to answer questions 6-8 Analyze each transaction. Under each category in the accounting equation, indicate whether the transaction: A. increases, B. decreases, or C. has no effect. The item (a) is provided as an example. (a) Provided services to a customer on account. (Revenue increases causing Stockholders' Equity to increase, Assets increase, and no effect on Liabilities). 6. Received phone bill, will pay next week. 7. Received cash for the interest earned on an investment. 8. Borrowed cash from a financial institution. (a) 6. 7. 8. Asset A Liability Stockholders' Equity C 9. At the beginning of January, the balance in the Retained Earnings account is $320,000 for the company. During the year, the company had the following external transactions. (a) Issue common stock for cash $250,000 (b) Purchase equipment and pay cash 175,000 (c) Provide services to customers in exchange for cash 352,000 (d) Provide services to customers on account 330,000 (e) Pay dividends to stockholders 100,000 0 Incurred rent cost for the year 25,000 (e) Incurred workers' salaries for the year 495,000 Determine ending Retained Earnings for December 31st.