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    The classification and normal balance of the supplies expense account is a(n) A. asset with a debit balance. A credit granted to a customer for merchandise that's damaged and not sold at the normal price. Favorite Answer. However, the amount of the retained earnings balance could be relatively low even for a financially healthy company, since dividends are paid out from this account. Initial Balance Sheet. The normal balance in the retained earnings account is a credit. At the end of the accounting year, the balance in the Dividends account is closed by transferring the account balance to Retained Earnings. The account Dividends (or Cash Dividends Declared) is a temporary, stockholders' equity account that is debited for the amount of the dividends that a corporation declares on its capital stock. Credit the dividends payable account. Cash c. Accounts Receivable d. Dividends 7. Lv 7. Revenue b. The dividends payable account recorded how much the company owes to shareholders between declaring a dividend and actually paying it. The normal balance of dividend is “Debit”.. Firstly, you should know what a normal balance in accounting means. a. The normal balance for Income Summary will be credit when there is a net income, debit when there is a net loss. Asset, debit b. e. Assets are decreased by credits and have a normal debit balance. Which of the following describes the classification and normal balance of the Unearned Rent Revenue account? The balance in capital account increases with the introduction of new capital and profits earned by the business and decreases as a result of withdrawals and losses sustained by the business. The normal balance in the retained earnings account is a credit. The classification and normal balance of the dividend account is:? However, the amount of the retained earnings balance could be relatively low even for a financially healthy company, since dividends are paid out from this account. For example, accounts on the left-hand side of the accounting equation will increase with a debit entry and will have a debit (DR) normal balance. To increase the value of an account with normal balance of credit, one would credit the account. 14,000 . ... Accounts Payable b. C. asset with a credit balance. The classification and normal balance of the accounts payable account is? Income Summary. 5. purchases allowance. For liability, equity and revenue accounts, the normal balance is a credit balance. ... the balance of Dividends is closed to. The classification and normal balance of the Dividends account is: a. revenue with a credit balance. The process of transferring the journal entries to the accounts is known as: a. summarizing. (3) Purchases a used crane for $13,200 cash D. Is recorded on the left side of a T-account. It is part of double-entry book-keeping technique.. An account has either credit (Abbrev. a. an expense with a debit balance ... Answer Save. and how do you know? answer choices . For asset and expense accounts, the normal balance is a debit balance. Like the debit to retained earnings, the amount credited will be the total value of the dividends declared. A debit is NOT the normal balance for which account listed below? Answer Save. 26. Good luck. Identify the letter of the choice that best completes the statement or answers the question. 5. Lv 4. The normal balance of a capital stock account is a debit. E. Is always an increase in an account. 3 0. mclelland. The dividends payable account normally shows a credit balance because it's a short-term debt a company must settle in the next 12 months. Classification and Types of Accounts We record business transactions in accounts. B. expense with a debit balance. A normal balance is the expectation that a particular type of account will have either a debit or a credit balance based on its classification within the chart of accounts. In sole proprietorship, a single capital account titled as owner’s capital account or simply capital account … d. a liabilty with a credit balance. DR) normal balance. This balance signifies that a business has generated an aggregate profit over its life. This item is integral to a balance sheet, the financial synopsis that provides a glimpse into a company's assets, debts and investors' money. c. posting. Fees Earned . Multiple Choice. answer choices . To increase the value of an account with normal balance of credit, one would credit the account. Anonymous. c. a liability with a credit balance. answer choices . Thus, an account is an individual and a formal record of a person, firm, company, asset, liability, goods, incomes and expenses. The classification and normal balance of the dividend account is? CR) or debit (Abbrev. Multiple Choice . It is part of Double-entry book-keeping technique. 7. Starting a Company (1) Issues 50,000 shares of $10 par value common stock at par value for cash. It can either be a debit balance or a credit balance. Recording changes in Income Statement Accounts. Shareholders of record receive payment in the form of cash or electronic transfer based on how many shares of … sales return. a. Retained Earnings. - a revenue with a credit balance - an ecpense with a debit balance - a liability with a credit balance - stockholders equity with a debit balance We need to prepare one account for each type of asset, liability, income or expense. If company has paid its dues or bills on time and lets say their credit terms are 30 days, if they pay with in 30 days, it is called the normal balance of a receivable account. Liability, credit c. Revenues, credit d. Expense, debit CR) or debit (Abbrev. It is possible for an account expected to have a normal balance as a debit to actually have a credit balance, and vice versa, but these situations should be in the minority. 1 Answer. The classification and normal balance of the dividends account is Oa liability with a credit balance Oan expense with a credit balance Ostockholders' equity with a debit balance Oan expense with a debit balance They’re a balance sheet transaction only, serving to reduce both cash (in the case of cash dividends) and retained earnings. An account has either credit (Abbrev. 6. b. updating. In accounting terminology, a normal balance refers to the kind of balance that is considered normal or expected for each type of account. False. (2) Acquires land and building costing $225,000 with the payment of $50,000 cash and the assumption of a 20-year, 8-percent mortgage for the balance. The normal balance of the Dividends account is a _ because it decreases _ . ... for each account and indicate the normal balance for each account by typing "Debit" or "Credit" in the space provided below for your answer. The classification and normal balance of the drawing account is the owner's equity with a debit balance. A) credit; revenues B) debit; liabilities C) debit; assets D) debit; shareholders' equity. a. an expense with a debit balance. Explore answers and all related questions . ... A corporation’s Dividends account is a temporary account. The normal balance is part of the double-entry bookkeeping method and refers to the expected debit or credit balance in a specified account. D. liability with a credit balance The classification of Accounts Payable is liability, and a current liability, it has a normal credit balance, and is found on the Balance Statement as a permanent account. Dividends are not an expense of doing business. At the time of the dividend declaration, the company records a $500,000 debit to its retained earnings account and a credit to the dividends payable account for … This balance signifies that a business has generated an aggregate profit over its life. Please find the balance. The Normal Balance of the Dividends Account Is a _ Question 48. This is called a contra-account because it works opposite the way the account normally works. The normal account balance is nothing but the expectation that the specific account … Normal balance is the accounting classification of an account. 6. This account will be credited (increased) on the date of declaration. State if it is a debit or credit balance. 1 decade ago. d. stockholders' equity with a debit balance. 2 Answers. The classification and normal balance of the dividends account is a. an expense with a credit balance b an expense with a debit balance c a liability with a credit balance d. stockholders' equity with a debit balance … DR) normal balance. Tell me why. good guy. 1 decade ago. The normal balance of the dividends account is a debit. Relevance. Cash dividends. Dividends are not classified as an expense or liability on a balance sheet. b. an expense with a debit balance. The normal balance of an expense account is a credit. Normal balance is the accounting classification of an account. Some accounts have “Debit” Balances while the others have “Credit” balances. Normal balance Definition. The normal balance of revenue accounts is credit. We learned that net income is added to equity. Relevance. The classification and normal balance of the dividends account is:? c. stockholders equity with a debit balance. Normal Balances in Accounting. For Dividends, it would be an equity account but have a normal DEBIT balance (meaning, debit will increase and credit will decrease). Here is another account. If the balance of the retained earnings account is negative it may be called accumulated losses, retained losses or accumulated deficit, or similar terminology. 1 Answer to CLASSIFICATION OF ACCOUNTS INSTRUCTIONS:The customary classifications for accounts listed in the chart of accounts are listed below. b. revenue with a credit balance. A normal balance is the expectation that a particular type of account will have either a debit or a credit balance based on its classification within the chart of accounts. True. Short-Term debt a company must settle in the chart of accounts INSTRUCTIONS: the customary classifications for accounts listed the.: a. revenue with a debit shares of $ 10 par value for cash year, the amount credited be... Is considered normal or expected for each type of asset, liability, income or.... 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