Test Bank For Financial Accounting 3rd Edition By Christopher Burnley. ACCOUNT CLASSIFICATION AND PRESENTATION
Normal
Account Title Classifi cation Financial Statement Balance
A
Accounts Payable Current Liability Statement of Financial Position Credit
Accounts Receivable Current Asset State...
Test Bank For Financial Accounting
3rd Edition By Christopher Burnley
, www.downloadslide.net
ACCOUNT CLASSIFICATION AND PRESENTATION
Normal
Account Title Classifi cation Financial Statement Balance
A
Accounts Payable Current Liability Statement of Financial Position Credit
Accounts Receivable Current Asset Statement of Financial Position Debit
Accumulated Depreciation— Plant Asset—Contra Statement of Financial Position Credit
Buildings
Accumulated Depreciation— Plant Asset—Contra Statement of Financial Position Credit
Equipment
Administrative Expenses Operating Expense Income Statement Debit
Advertising Expense Operating Expense Income Statement Debit
Allowance for Doubtful Accounts Current Asset—Contra Statement of Financial Position Credit
Amortization Expense Operating Expense Income Statement Debit
B
Bad Debt Expense Operating Expense Income Statement Debit
Bonds Payable Non-Current Liability Statement of Financial Position Credit
Buildings Plant Asset Statement of Financial Position Debit
C
Cash Current Asset Statement of Financial Position Debit
Copyrights Intangible Asset Statement of Financial Position Debit
Cost of Goods Sold Cost of Goods Sold Income Statement Debit
D
Debt Investments Current Asset/Long-Term Statement of Financial Position Debit
Investment
Depreciation Expense Operating Expense Income Statement Debit
Dividend Revenue Other Income and Expense Income Statement Credit
Dividends Temporary account closed Retained Earnings Debit
to Retained Earnings Statement
Dividends Payable Current Liability Statement of Financial Position Credit
E
Equipment Plant Asset Statement of Financial Position Debit
F
Freight-Out Operating Expense Income Statement Debit
G
Gain on Disposal of Plant Assets Other Income and Expense Income Statement Credit
Goodwill Intangible Asset Statement of Financial Position Debit
I
Income Summary Temporary account closed Not Applicable (1)
to Retained Earnings
Income Tax Expense Income Tax Expense Income Statement Debit
Income Taxes Payable Current Liability Statement of Financial Position Credit
Insurance Expense Operating Expense Income Statement Debit
Interest Expense Other Income and Expense Income Statement Debit
Interest Payable Current Liability Statement of Financial Position Credit
Interest Receivable Current Asset Statement of Financial Position Debit
Interest Revenue Other Income and Expense Income Statement Credit
Inventory Current Asset Statement of Financial Position (2) Debit
, www.downloadslide.net
Normal
Account Title Classifi cation Financial Statement Balance
L
Land Plant Asset Statement of Financial Position Debit
Loss on Disposal of Plant Assets Other Income and Expense Income Statement Debit
M
Maintenance and Repairs Expense Operating Expense Income Statement Debit
Mortgage Payable Non-Current Liability Statement of Financial Position Credit
N
Notes Payable Current Liability/ Statement of Financial Position Credit
Non-Current Liability
P
Patents Intangible Asset Statement of Financial Position Debit
Prepaid Insurance Current Asset Statement of Financial Position Debit
R
Rent Expense Operating Expense Income Statement Debit
Research and Development Expense Operating Expense Income Statement Debit
Retained Earnings Equity Statement of Financial Position Credit
and Retained Earnings Statement
S
Salaries and Wages Expense Operating Expense Income Statement Debit
Salaries and Wages Payable Current Liability Statement of Financial Position 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
Share Capital—Ordinary Equity Statement of Financial Position Credit
Share Capital—Preference Equity Statement of Financial Position Credit
Share Investments Current Asset/Long-Term Statement of Financial Position Debit
Investment
Share Premium—Ordinary Equity Statement of Financial Position Credit
Share Premium—Preference Equity Statement of Financial Position Credit
Supplies Current Asset Statement of Financial Position Debit
Supplies Expense Operating Expense Income Statement Debit
T
Treasury Shares Equity—Contra Statement of Financial Position Debit
U
Unearned Service Revenue Current Liability Statement of Financial Position 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 fi nancial statement.
(2) If a periodic system is used, Inventory also appears on the income statement in the calculation of cost of goods sold.
, www.downloadslide.net
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.
CHART OF ACCOUNTS
Assets Liabilities Equity Revenues Expenses
Cash Notes Payable Share Capital— Service Revenue Administrative
Preference Expenses
Accounts Accounts Payable Sales Revenue
Receivable Share Capital— Amortization
Unearned Service Ordinary Sales Discounts Expense
Allowance for Revenue
Doubtful Share Premium— Sales Returns and Bad Debt Expense
Accounts Salaries and Preference Allowances
Wages Payable Cost of Goods Sold
Interest Share Premium— Interest Revenue
Receivable Interest Payable Ordinary Depreciation
Gain on Disposal Expense
Inventory Dividends Payable Retained Earnings of Plant Assets
Freight-Out
Supplies Income Taxes Treasury Shares
Payable Income Tax
Prepaid Insurance Dividends Expense
Bonds Payable
Land Income Summary Insurance Expense
Mortgage Payable
Equipment Interest Expense
Accumulated Loss on Disposal of
Depreciation— Plant Assets
Equipment
Maintenance and
Buildings Repairs Expense
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
√ Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, Bancontact of creditcard voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper DoctorReinhad. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €23,50. Je zit daarna nergens aan vast.
