Fall 2018-BUS2101-Chapter 2 Homeworks All Questions lexcept Ouestion !) should be done in color Journal entries do not need explanations aged to use journal paper for journal entries and trial balances Homework should always be hand-written (do not type) Question 1) The terms debit and credit mean "increase" and "decrease," respectively. Do you agree? Explain your answer. Question 2) For each of the following, indicate 1) the classification (asset, liability, owner's equity revenue, or expense), 2) the financial statement it appears on (income statement, statement of retained earnings, or balance sheet), and 3) its normal balance (debit or credit). (a) Unearned Revenue (b) Accounts Payable (c) Prepaid Expense (d) Accumulated Depreciation (e) Service Revenue (f) Cost of Goods Sold (g) Dividends (h) Supplies Question 3) An inexperienced owner prepared the following trial balance that does not balance. Prepare a correct trial balance (in correct form/order) assuming all accounts balances are normal. W. Karim Company Trial Balance September 30, 2018 Debit Credit $26,400 Service Revenue Dividends Cash $ 1,100 5,000 20,800 10,900 14,600 9,400 1,800 79,750 Ren Unearned Service Revenue Accounts Pavablc 2,500 11.700 81,450 aid R ahinas li66003.0 Rent Expense 2,600