Walter Isaacson, Medical Practice, has the following accounts:

Salaries Payable..................................Equipment

Salaries Expense.............................Notes Payable

W. Isaacson, Drawings........................Fees Earned

W. Isaacson, Capital......................Interest Expense

Unearned Revenue.....................Insurance Expense

Rent Revenue...........................................Land

Rent Expense.......................................Building

Prepaid Rent.............................................Cash

Supplies Expense.....................Accounts Receivable

Supplies....................................Accounts Payable

Instructions

For each of these accounts, identify

(a) The type of account (e.g., asset, liability, owner's capital, drawings, revenue, expense);

(b) What financial statement it is presented on;

(c) The normal balance of the account;

(d) Whether the account is increased by a debit or credit; and

(e) Whether the account is decreased by a debit or credit. Use the following format, in which the first one has been done for you as an example.

TAKING IT FURTHER Explain the relationship between the normal balance in each type of account and the basic accounting equation.

Transcribed Image Text:

Account Type of Account Financial StatemNormal Balance Increase Decrease Salaries Payable Liability Balance Sheet Credit Credit