Accounting > STUDY GUIDE > ACCOUNTING PRINCIPLES TWELFTH EDITION (All)
ACCOUNTING PRINCIPLES TWELFTH EDITION ACCOUNT CLASSIFICATION AND PRESENTATION Account Title Classification Financial Statement Normal Balance A Accounts Payable Current Liability Balance Sheet C... redit Accounts Receivable Current Asset Balance Sheet Debit Accumulated Depreciation—Buildings Plant Asset—Contra Balance Sheet Credit Accumulated Depreciation—Equipment Plant Asset—Contra Balance Sheet Credit Advertising Expense Operating Expense Income Statement Debit Allowance for Doubtful Accounts Current Asset—Contra Balance Sheet Credit Amortization Expense Operating Expense Income Statement Debit B Bad Debt Expense Operating Expense Income Statement Debit Bonds Payable Long-Term Liability Balance Sheet Credit Buildings Plant Asset Balance Sheet Debit C Cash Current Asset Balance Sheet Debit Common Stock Stockholders’ Equity Balance Sheet Credit Copyrights Intangible Asset Balance Sheet Debit Cost of Goods Sold Cost of Goods Sold Income Statement Debit D Debt Investments Current Asset/Long-Term Investment Balance Sheet Debit Depreciation Expense Operating Expense Income Statement Debit Discount on Bonds Payable Long-Term Liability—Contra Balance Sheet Debit Dividends Temporary account closed to Retained Earnings Retained Earnings Statement Debit Dividends Payable Current Liability Balance Sheet Credit E Equipment Plant Asset Balance Sheet Debit F Freight-Out Operating Expense Income Statement Debit G Gain on Disposal of Plant Assets Other Income Income Statement Credit Goodwill Intangible Asset Balance Sheet Debit I Income Summary Temporary account closed to Retained Earnings Not Applicable (1) Income Tax Expense Income Tax Expense Income Statement Debit Income Taxes Payable Current Liability Balance Sheet Credit Insurance Expense Operating Expense Income Statement Debit Interest Expense Other Expense Income Statement Debit Interest Payable Current Liability Balance Sheet Credit Interest Receivable Current Asset Balance Sheet Debit Interest Revenue Other Income Income Statement Credit Inventory Current Asset Balance Sheet (2) Debit Account Title Classification Financial Statement Normal Balance L Land Plant Asset Balance Sheet Debit Loss on Disposal of Plant Assets Other Expense Income Statement Debit M Maintenance and Repairs Expense Operating Expense Income Statement Debit Mortgage Payable Long-Term Liability Balance Sheet Credit N Notes Payable Current Liability/ Long-Term Liability Balance Sheet Credit O Owner’s Capital Owner’s Equity Owner’s Equity and Balance Sheet Credit Owner’s Drawings Temporary account closed to Owner’s Capital Owner’s Equity Debit P Patents Intangible Asset Balance Sheet Debit Paid-in Capital in Excess of Par— Common Stock Stockholders’ Equity Balance Sheet Credit Paid-in Capital in Excess of Par— Preferred Stock Stockholders’ Equity Balance Sheet Credit Preferred Stock Stockholders’ Equity Balance Sheet Credit Premium on Bonds Payable Long-Term Liability Balance Sheet Credit Prepaid Insurance Current Asset Balance Sheet Debit Prepaid Rent Current Asset Balance Sheet Debit R Rent Expense Operating Expense Income Statement Debit Retained Earnings Stockholders’ Equity Balance Sheet and Retained Earnings Statement Credit S Salaries and Wages Expense Operating Expense Income Statement Debit Salaries and Wages Payable Current Liability Balance Sheet Credit Sales Discounts Revenue—Contra Income Statement Debit Sales Returns and Allowances Revenue—Contra Income Statement Debit Sales Revenue Revenue Income Statement Credit Selling Expenses Operating Expense Income Statement Debit Service Revenue Revenue Income Statement Credit Stock Investments Current Asset/Long-Term Investment Balance Sheet Debit Supplies Current Asset Balance Sheet Debit Supplies Expense Operating Expense Income Statement Debit T Treasury Stock Stockholders’ Equity—Contra Balance Sheet Debit U Unearned Service Revenue Current Liability Balance Sheet Credit Utilities Expense Operating Expense Income Statement Debit (1) The normal balance for Income Summary will be credit when there is a net income, debit when there is a net loss. The Income Summary account does not appear on any financial statement. (2) If a periodic system is used, Inventory also appears on the income statement in the calculation of cost of goods sold. CHART OF ACCOUNTS The following is a sample chart of accounts. It does not represent a comprehensive chart of all the accounts used in this textbook but rather those accounts that are commonly used. This sample chart of accounts is for a company that generates both service revenue as well as sales revenue. It uses the perpetual approach to inventory. If a periodic system was used, the following temporary accounts would be needed to record inventory purchases: Purchases, Freight-In, Purchase Returns and Allowances, and Purchase Discounts. Assets Cash Accounts Receivable Allowance for Doubtful Accounts Interest Receivable Inventory Supplies Prepaid Insurance Prepaid Rent Land Equipment Accumulated Depreciation— Equipment Buildings Accumulated Depreciation— Buildings Copyrights Goodwill Patents [Show More]
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