Account Classification

Accounting Classification ASSETS These items are owned by the corporation, and have future value for the corporation. Account Title

Statement

Classification

Increase

Decrease

Cash Short-term Investments Notes Receivable Interest Receivable Accounts Receivable Allowance for Doubtful Accounts Inventory Supplies Prepaid Rent Prepaid Insurance Investment in shares of Intel Corporation Stock Investment in real estate Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation-Equipment Copyright Trade Mark Trade Name Goodwill

Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet

Current Asset Current Asset Current Asset Current Asset Current Asset Contra Asset Account

Debit Side Debit Side Debit Side Debit Side Debit Side Credit Side

Credit Side Credit Side Credit Side Credit Side Credit Side Debit Side

Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet

Current Asset Current Asset Current Asset Current Asset Long-Term investments

Debit Side Debit Side Debit Side Debit Side Debit Side

Credit Side Credit Side Credit Side Credit Side Credit Side

Balance Sheet Balance Sheet Balance Sheet Balance Sheet

Long-Term investments Property, Plant and Equipment Property, Plant and Equipment Property, Plant and Equipment

Debit Side Debit Side Debit Side Credit Side

Credit Side Credit Side Credit Side Debit Side

Balance Sheet Balance Sheet

Property, Plant and Equipment Property, Plant and Equipment

Debit Side Credit Side

Credit Side Debit Side

Balance Sheet Balance Sheet Balance Sheet Balance Sheet

Intangible Asset Intangible Asset Intangible Asset Intangible Asset

Debit Side Debit Side Debit Side Debit Side

Credit Side Credit Side Credit Side Credit Side

LIABILITIES These items are debt owed to either individuals or corporations, and must be paid in the future by the corporation. Account Title Notes payable Accounts payable Dividends payable Unearned revenue Interest payable Salaries and wages payable Income tax payable Bonds payable Mortgage payable Long-Term Notes payable Employee benefits payable MJC Revised 10/2011

Statement Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet

Classification Current liability Current liability Current liability Current liability Current liability Current liability Current liability Long-Term liability Long-Term liability Long-Term liability Long-Term liability

Increase Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side

Decrease Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Page 1

Accounting Classification Stockholders’ Equity The corporation from the investors receives these items, or it is income retained in the corporation. Account Title Preferred Stock In excess of par valuepreferred stock Common Stock In excess of par value – common stock Dividends Retained Earnings Treasury Stock

Statement Balance Sheet Balance Sheet Balance Sheet Balance Sheet Retained Earnings Statement Balance Sheet Balance Sheet

Classification Paid-in capital Additional paid-in capital Paid-in capital Additional paid-in capital Equity Equity Equity

Increase Credit Side Credit Side

Decrease Debit Side Debit Side

Credit Side Credit Side

Debit Side Debit Side

Debit Side Credit Side Debit Side

Credit Side Debit Side Credit Side

REVENUES These accounts represent the income earned by the corporation from the customers. Account Title Sales revenue Service revenue Rent revenue Interest revenue

Statement Income statement Income statement Income statement Income statement

Classification Revenue Revenue Revenue Revenue

Increase Credit Side Credit Side Credit Side Credit Side

Decrease Debit Side Debit Side Debit Side Debit Side

EXPENSES This is the cost incurred by the corporation in the process of doing business. Account Title Cost of goods sold Administration expenses Selling expenses Salaries and wages expense Rent Expense Insurance expense Interest expense Travel expense Depreciation expense

MJC Revised 10/2011

Statement Income statement Income statement Income statement Income statement Income statement Income statement Income statement Income statement Income statement

Classification Expense Expense Expense Expense Expense Expense Expense Expense Expense

Increase Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side

Decrease Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side

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