NAME: ________________________________________________
DATE: ____________
CHAPTER 3: Classifying Accounts Review Worksheet
Last update: 8/24/15
Directions: In the table below, classify each account title according to the accounting equation; identify its
normal balance and its increase and decrease side. There are two new accounts that you have not yet used. See
if you can figure out how to classify and identify their normal balances & increase/decrease sides.
Account Title
Classification
Normal
Balance
Increase
Side
Decrease
Side
Anna Jones, Drawing
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Supplies
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Repair Expense
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Rent Expense
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Miscellaneous Expense
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Accounts Receivable
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Prepaid Insurance
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Office Furniture
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Cash
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Adrian Sanchez, Capital
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Accounts Payable
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Sales
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Advertising Expense
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Utilities Expense
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Medicare Tax Payable
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
1. In the accounting equation, owner’s equity has a normal credit balance. Explain why the owner’s equity,
Drawing account, has a debit balance.
2. In the accounting equation, owner’s equity has a normal credit balance. Explain why the owner’s equity,
Sales account, has a credit balance.