0
The retained earnings account usually carries a credit balance.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
Is interest earned a debit or credit?
All earnings and revenues has credit balance as normal balance so interest earned also has credit balance as default normal balance.
Which T-accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner?
Normal Balance Debit: (Asset, Expense, Dividend) Accounts Receivable Inventory Equipment Supplies Prepaid Rent Prepaid Insurance Cash Supplies Expense Depreciation Expense Rent Expense Salaries Expense Cost of Goods Sold Normal Balance Credit: (Liability, Shareholder Equity, Revenue, Retained Earnings) Accounts Payable Salaries Payable Accumulated Depreciation Retained Earnings Unearned Revenue Service Revenue Common Stock
What is the normal balance of unearned rent?
It has a normal balance of a credit.
Which type of account has a normal credit balance?
All liabilities as well as income accounts has normal credit balance and also profit has credit balance.
What is normal balance of a revenue?
All revenue accounts has credit balance as a normal balance
What is the normal balance of retained earnings?
normal balance of retained earnings: credit.
Is a credit a decrease in assets retained earnings revenue liabilities?
Credit causes the decrease in assets only because assets has debit balance as a normal balance while all other items has credit balance and credit causes the increase in them.
Is interest earned a debit or credit?
All earnings and revenues has credit balance as normal balance so interest earned also has credit balance as default normal balance.
Which T-accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner?
Normal Balance Debit: (Asset, Expense, Dividend) Accounts Receivable Inventory Equipment Supplies Prepaid Rent Prepaid Insurance Cash Supplies Expense Depreciation Expense Rent Expense Salaries Expense Cost of Goods Sold Normal Balance Credit: (Liability, Shareholder Equity, Revenue, Retained Earnings) Accounts Payable Salaries Payable Accumulated Depreciation Retained Earnings Unearned Revenue Service Revenue Common Stock
Can you pull your retained earnings and put into dividends?
Yes retained earnings are maintained for use when company is low in liquidity so company can use its retained earnings to pay dividends or any other business activity in normal course of business.
What do you debit and credit on a credit sale?
Assume we are selling a dress on credit for $100; the dress has a cost of $80. Accounts receivable: debit 100 Sales: credit 100 Cost of goods sold: debit 80 Inventory: credit 80 The rationale is as follows: Inventory is an asset (normal debit balance), which is reduced (hence a credit) Accounts receivable is an asset (normal debit balance), which increases (hence a credit) A profit is made of 20, hence equity increases. Instead of applying a credit on retained earnings, temporary T-accounts are used (sales and cost of goods sold) Sales has a normal credit balance, hence it is credited Cost of goods sold has a normal debit balance, hence it is debited Notice that the two temporary T-accounts together are credited for 20, which is the profit margin
What is the normal balance of unearned rent?
It has a normal balance of a credit.
Is an increase in Capital Stock a credit in the normal balance of an account?
Yes capital stock has credit balance as a normal balance so increase is also has credit balance.
Is product sales normally debit or credit?
Sales revenue has a credit balance as a normal balance so product sales also has credit balance as normal balance.
Which type of account has a normal credit balance?
All liabilities as well as income accounts has normal credit balance and also profit has credit balance.
What is normal balance of a revenue?
All revenue accounts has credit balance as a normal balance
Do expenses have credit or debit?
All expenses has debit balance as normal default balance while all income has credit balance as normal default balance.
