EXERCISES Classifying accounts LO 2, 3 Th i s are from Yooyin Chang Winterior design company, Big Apple Design For each account the slowing The first one has been completed for you as an example T hese account category Cat, liability, owner's capital, withdrawal, revenue or expense) The financial statement the account is recorded on (Income Statement, Statement of Changes in Equity, or Balance Sheet). The normal balance (debitor credit). The effect of a debit to the account increase or decrease) The effect of a credit increase or decrease) Cash b. Supplies Accounts payable d. Yoojin Chang. Capital Account e. Yoojin Chang. Withdrawals Design Revenue . Salaries Expense h. Accounts Receivable i Notes Payable J. Prepaid Insurance (2) Financial Statement (3) Normal Balance Here are (4) Effect of a Debit Base Account (5) Effect of a Credit obli c erat Balance Sheet Debit Decrease increase CHECKPOINT 1. Explain the accounting cycle. 2. Classify the following accounts as either assets, liabilities, or equity (1) Prepaid Rent, (2) Rent Ex. pense. (3) Unearned Rent (4) Rent Revenue (5) Buildings. (6) Owner Capital (7) Wages Payable, (8) Wages Expense. (9) Office Supplies, and (10) Owner Withdrawals. 3. What is the difference among the accounts Rent Earned, Rent Revenue, and Earned Rent? Do Quick Study question: OS 24