EXAMPLE EXERCISE 2-1 Rules of Debit and Credit and Normal Balances State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also indicate its normal balance. 1. Amber Saunders, Drawing 2. Accounts Payable 3. Cash Follow My Example 2-1 1. Debit entries only; normal debit balance 2. Debit and credit entries; normal credit balance 3. Debit and credit entries; normal debit balance 4. Fees Earned 5. Supplies 6. Utilities Expense 4. Credit entries only; normal credit balance 5. Debit and credit entries; normal debit balance 6. Debit entries only; normal debit balance OBJ.2 Practice Exercises: PE 2-1 A, PE 2-1B

State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also indicate its normal balance. 1. Amber Saunders, Drawing 4. Fees Earned 2. Accounts Payable 5. Supplies 3. Cash 6. Utilities Expense Follow My Example 2-1 1. Debit entries only; normal debit balance- 2. Debit and credit entriess normal credit balance 3. Debit and credit entries: normal debit balance 4. Credit entries only; normal credit balance. 5. Debit and credit entries normal debit balance 6. Debit entries onlys nomal debit balance Practice Exercises: PE 2-1A, PE 2-18