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Accounting Classification

ASSETS

These items are owned by the corporation, and have future value for the corporation.

Account Title Statement Classification Increase Decrease


Cash Balance Sheet Current Asset Debit Side Credit Side
Short-term Investments Balance Sheet Current Asset Debit Side Credit Side
Notes Receivable Balance Sheet Current Asset Debit Side Credit Side
Interest Receivable Balance Sheet Current Asset Debit Side Credit Side
Accounts Receivable Balance Sheet Current Asset Debit Side Credit Side
Allowance for Doubtful Balance Sheet Contra Asset Account Credit Side Debit Side
Accounts
Inventory Balance Sheet Current Asset Debit Side Credit Side
Supplies Balance Sheet Current Asset Debit Side Credit Side
Prepaid Rent Balance Sheet Current Asset Debit Side Credit Side
Prepaid Insurance Balance Sheet Current Asset Debit Side Credit Side
Investment in shares of Balance Sheet Long-Term investments Debit Side Credit Side
Intel Corporation Stock
Investment in real estate Balance Sheet Long-Term investments Debit Side Credit Side
Land Balance Sheet Property, Plant and Equipment Debit Side Credit Side
Building Balance Sheet Property, Plant and Equipment Debit Side Credit Side
Accumulated Balance Sheet Property, Plant and Equipment Credit Side Debit Side
Depreciation-Building
Equipment Balance Sheet Property, Plant and Equipment Debit Side Credit Side
Accumulated Balance Sheet Property, Plant and Equipment Credit Side Debit Side
Depreciation-Equipment
Copyright Balance Sheet Intangible Asset Debit Side Credit Side
Trade Mark Balance Sheet Intangible Asset Debit Side Credit Side
Trade Name Balance Sheet Intangible Asset Debit Side Credit Side
Goodwill Balance Sheet Intangible Asset Debit 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 Statement Classification Increase Decrease


Notes payable Balance Sheet Current liability Credit Side Debit Side
Accounts payable Balance Sheet Current liability Credit Side Debit Side
Dividends payable Balance Sheet Current liability Credit Side Debit Side
Unearned revenue Balance Sheet Current liability Credit Side Debit Side
Interest payable Balance Sheet Current liability Credit Side Debit Side
Salaries and wages payable Balance Sheet Current liability Credit Side Debit Side
Income tax payable Balance Sheet Current liability Credit Side Debit Side
Bonds payable Balance Sheet Long-Term liability Credit Side Debit Side
Mortgage payable Balance Sheet Long-Term liability Credit Side Debit Side
Long-Term Notes payable Balance Sheet Long-Term liability Credit Side Debit Side
Employee benefits payable Balance Sheet Long-Term liability Credit Side Debit Side

MJC Revised 10/2011 Page 1


Accounting Classification

Stockholders Equity
The corporation from the investors receives these items, or it is income retained in the corporation.

Account Title Statement Classification Increase Decrease


Preferred Stock Balance Sheet Paid-in capital Credit Side Debit Side
In excess of par value- Balance Sheet Additional paid-in Credit Side Debit Side
preferred stock capital
Common Stock Balance Sheet Paid-in capital Credit Side Debit Side
In excess of par value Balance Sheet Additional paid-in Credit Side Debit Side
common stock capital
Dividends Retained Earnings Statement Equity Debit Side Credit Side
Retained Earnings Balance Sheet Equity Credit Side Debit Side
Treasury Stock Balance Sheet Equity Debit Side Credit Side

REVENUES
These accounts represent the income earned by the corporation from the customers.

Account Title Statement Classification Increase Decrease


Sales revenue Income statement Revenue Credit Side Debit Side
Service revenue Income statement Revenue Credit Side Debit Side
Rent revenue Income statement Revenue Credit Side Debit Side
Interest revenue Income statement Revenue Credit Side Debit Side

EXPENSES
This is the cost incurred by the corporation in the process of doing business.

Account Title Statement Classification Increase Decrease


Cost of goods sold Income statement Expense Debit Side Credit Side
Administration expenses Income statement Expense Debit Side Credit Side
Selling expenses Income statement Expense Debit Side Credit Side
Salaries and wages expense Income statement Expense Debit Side Credit Side
Rent Expense Income statement Expense Debit Side Credit Side
Insurance expense Income statement Expense Debit Side Credit Side
Interest expense Income statement Expense Debit Side Credit Side
Travel expense Income statement Expense Debit Side Credit Side
Depreciation expense Income statement Expense Debit Side Credit Side

MJC Revised 10/2011 Page 2