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Unformatted text preview: 2-1Indicate the normal balance (ie what you do to increase) of the following accoCashSalesAccounts PayableRetained EarningsSecurity DepositNote PayableWages PayableAccounts ReceivableWage ExpenseInterest RevenueTax ExpenseTax PayableInventoryAdvertising ExpenseCost of Goods Sold2-2Debit meansAAsset BAsset and expenseCLeft sideDRight sideECan be either the left or right side depending on the account2-3Indicate whether the following statements are true or falseEach journal entry must balanceIf a journal entry has two debits, it must have two creditsDebits are usually put first in a journal entryJournal entries must include both balance sheet and income statement accountsThe closing entry can't be made until the tax expense is determined2-4 Indicate which side of the T account is the debit and which is the credit side?2-5 Indicate by "+" or "-" which side of the T account increases or decreases the parcategory of account....
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This note was uploaded on 09/12/2010 for the course ACCT 101 taught by Professor Drkirch during the Spring '10 term at Ohio University- Athens.
- Spring '10