For each account listed below, determine if the account is decreased by a debit

Question

For each account listed below, determine if the account is decreased by a debit or a credit. Select your answer by clicking in the drop down box to the right of each account

common stock

      [ Choose ]            debit            credit      

interest revenue

      [ Choose ]            debit            credit      

accounts payable

      [ Choose ]            debit            credit      

patent

      [ Choose ]            debit            credit      

loss on sale of land

[ Choose ]            debit            credit  

Explanation / Answer

common stock: Debit

(Because it is owners capital and have credit balance. It would decrease on sale/ buyback by debiting stock a/c)

Interest Revenue: Debit

(Revenue being of income nature is credited. To decrease the account, it will be debit)

A/c Payable: Debit

(They are liabilities for enterprise. It will decrease on payment and are debited)

Patent: Credit

(It is asset for company. It will decrease by credit)

Loss on sale of land: Credit

(Loss on sale is expense for company. To reduce such account should be credited)

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