Classification of Accounts

Account Title Account Classification Normal Financial Statement

Balance

Accounts Payable Currentliability Credi Balance sheet

t
Accounts Receivable Currentasset Debt Balance sheet

Accumulated Depreciatio Plantasset Credi Balance sheet

n t
Accumulated Depletion Plantasset Credi Balance sheet
t
Advertising Expense Operating expense Debit Income statement

Allowance for Doubtful A Currentasset Credi Balance sheet

ccounts t
Amortization Expense Operating expense Debit Income statement

Appropriation for______ Stockholders equity Credi Retained earn

_____ t ingsstatemen
t/Balance she
et
Bonds Payable Long term liability Credi Balance sheet
t
Building Plantasset Debit Balance sheet

___________Capital Owners equity Credi Statementofowne

t r’sequity/
Balance sheet

Capital Stock Stockholders equity Credi Balance sheet

t
Cash Currentasset Debit Balance sheet
Cash Dividends Stockholders’ equity Debit Retained earni
ngsstatement

Cash Dividends Payable Currentliability Credi Balance sheet

t
Common Stock Stockholders’ equity Credi Balance sheet
t

CostofMerchandise (Go Costof merchandise(g Debit Income statement

ods)Sold oodssold)

Deferred Income Tax CurrentLiability/Lon Credi Balance sheet

g termliability t

Depletion Expense Operating expense Debit Income statement

Discounton Bonds Payabl Long term liability Debit Balance sheet

e
Dividend Income Other income Credi Income statement
t
Dividends Stockholders’ equity Debit Retained earni
ngsstatement

Donated Capital Stockholders’ equity Credi Balance sheet

t
Employees Federal Inco Currentliability Credi Balance sheet
me TaxPayable t

Equipment Plantasset Debit Balance sheet

Exchange Gain Other income Credi Income statement

t
Exchange Loss Other expense Debit Income statement
Factory/Overhead (Over Deferred credit Credi Balance sheet(inte
applied) t rim)
Factory Overh Deferred debit Debit Balance sheet(inte
ead(Underapp rim)
lied)
Federal Income Tax Paya Currentliability Credi Balance sheet
ble t
Federal Unemploymen Currentliability Credi Balance sheet
tTaxPayable t

FICA Tax Payable Currentliability Credi Balance sheet

t
Finished Goods Currentasset Debit Balance sheet

Gain on Disposal ofPl Other income Credi Income statement

antAssets t

Gain on Redemption ofBo Extraordinary item Credi Income statement

nds t
Gain on Sale ofInvestmen Other income Credi Income statement
ts t
Goodwill Intangible asset Debit Balance sheet

Income Tax Income tax Debit Income statement

Income Tax Payable Currentliability Credi Balance sheet

t

Insurance Expense Operating expense Debi Income statement

t
InterestExpense Other expense Debi Income statement
t
InterestIncome Other income Cred Income statement
it
InterestReceivable Currentasset Debi Balance sheet
t
Investmentin Bonds Investment Debi Balance sheet
t
Investmentin Stocks Investment Debi Balance sheet
t
Investmentin Subsidiary Investment Debi Balance sheet
t
Land Plantasset Debi Balance sheet
t
Loss on Disposal ofPl Other expense Debi Income statement
antAssets t

Loss on Redemption Bon Extraordinary item Debi Income statement

ds t
Loss on Sale ofInvestme Other expense Debi Income statement
nts t
Marketable Securities Currentassets Debi Balance sheet
t
Materials Currentasset Debi Balance sheet
t
Merchandise Inventory Currentasset/Cos Debi Balance sheet/Inc
tofmerchandise s t omestatement
old
Notes Payable Currentliability/Long Cred Balance sheet
- termliability it

Notes Receivable Currentasset/Investme Debi Balance sheet

nt t
Organization Costs Intangible asset Debi Balance sheet
t
Patents Intangible asset Debi Balance sheet
t
Paid-In Capital from Sa Stockholders’ equity Cred Balance sheet
le ofTreasury Stock it

Paid-In Capital in Exce Stockholders’ equity Cred Balance sheet

ss ofPar (Stated Value) it

Payroll Tax Expense Operating expense Debi Income statement

t
Pension Expense Operating expense Debi Income statement
t

Petty Cash Currentasset Debit Balance sheet

Premium on Bonds Payab Long-term liability Credi Balance sheet

le t
Prepaid Insurance Currentasset Debit Balance sheet

Prepaid Rent Currentasset Debit Balance sheet

Preferred Stock Stockholders’ equity Credi Balance sheet

t
Purchases CostofMerchandise sol Debit Income statement
d
Purchases Discounts Costofmerchandise sol Credi Income statement
d t
Purchases Returns Costofmerchandise sol Credi Income statement
andAllowances d t

RentExpense Operating expense Debit Income statement

RentIncome Other income Credi Income statement

t
Retained Earnings Shareholders’ equity Credi Balance sheet/Ret
t ainedearnings stat
ement
Salaries Expense Operating expense Debit Income statement

Salaries Payable Currentliability Credi Balance sheet

t
Sales Revenue from sales Credi Income statement
t
Sales Discounts Revenue from sales Debit Income statement

Sales Returns and Allow Revenue from sales Debit Income statement
ances
Sales Tax Payable Currentliability Credi Balance sheet
t
Sinking Fund Cash Investment Debit Balance sheet

Sinking Fund Investment Investment Debit Balance sheet

s
State Unemployment Currentliability Credi Balance sheet
TaxPayable t

Stock Dividends Stockholders’ equity Debit Retained earni

ngsstatement

Stock Dividends Distribu Stockholders’ equity Credi Balance sheet

table t
Supplies CurrentAsset Debit Balance sheet

Supplies Expense Operating expense Debit Income statement

Transportation In Costofmerchandise sol Debit Income statement

d
Treasury Stock Stockholders’ equity Debit Balance sheet

Uncollectible Accounts E Operating expense Debit Income statement

xpense
Unearned Rent Currentliability Credi Balance sheet
t
Utilities Expense Operating expense Debit Income statement

Vacation Pay Expense Operating expense Debit Income statement

Vacation Pay Payable Currentliability/Long Credi Balance sheet

- termliability t

Work in Process Currentasset Debit Balance sheet