Calunod, Mary Rogen Archelle A.

- BSA

LET’S CHECK

Activity 4. It is very important to have a deep understanding on the account title and its classification,
where to locate this in the financial statements because in recording transactions this knowledge is very
useful. Below is a chart of accounts, all you have to do is to classify these accounts according to the
elements of financial statements. On the second column identify the

Financial statements where these accounts must appear, 3 rd column identify the sub-classification and
on the last column write the correct line items where these accounts belong. Some of the accounts will
not be encountered in this course, nevertheless it is introduced for your advance learning. The score
required to pass this activity is 135. Each number is equivalent to 3 points. You can use abbreviations
SFP, IS (for FS); CA, NCA, CL, NCL, C/S, OPEX for sub classification. The first 4 items are answered for
your reference.

ACCOUNT’S CLASSIFICATIONS F/S SUB LINE ITEMS

CLASSIFICATIONS
1 Cash on Hand SFP CA Cash and Cash Equivalents
2 Accounts Payable SFP CL Trade and Other Payable
3 Accrued Expenses SFP CL Trade and Other Receivable
4 Accumulated depreciation SFP NCA Property, Plant and Equipment
5 Advances from customer SFP CL Trade and Other Payable
6 Advances of employees SFP CA Trade and Other Receivable
collectible currently
7 Advances of Officers (non SFP NCA Other Non- current Asset
currently collectible)
8 Advertising Expenses IS Expense Operating Expenses
9 Allowance of doubtful account SFP CA Trade and Other Receivable
10 Cash in bank – current SFP CA Cash and Cash Equivalents
11 Cash In bank – Savings SFP CA Cash and Cash Equivalents
12 Cash Surrender Value SFP NCA Cash and Cash Equivalents
13 Claim Receivable SFP CA Trade and Other Receivable
14 Copyright SFP NCA Intangibles
15 Costumers deposit SFP CL Trade and Other Payables
16 Depreciation Expensive IS Expense Operating Expenses
17 Doubtful Account Expense IS Expense Operating Expenses
18 Drawing SFP C/S Owner’s Withdrawal
19 Factory Supplies SFP C/S Inventories
20 Finished Goods SFP CA Inventories
21 Franchise SFP NCA Revenue
22 Freight In IS C/S Cost of Sales
23 Furniture’s and Fixtures SFP NCA Property, Plant and Equipment
24 Goods in Process SFP CA Inventories
25 Goodwill SFP NCA Intangibles
26 Income tax Payable SFP C/S Revenue
27 Interest Income IS C/S Revenue
28 Interest Receivable SFP CA Trade and Other Receivable
29 Internet Fees IS Income Revenue
30 Investment in Bonds SFP NCA Investments (Long Term)
31 Land SFP NCA Investment property
32 Land held for speculation SFP NCA Investment property
33 Machinery SFP NCA Property, Plant and Equipment
34 MIDSE Inventory SFP CA Inventories
35 Mortgage Payable SFP NCL Mortgage Payable
36 Notes Payable SFP CL Trade and Other Payables
37 Notes Receivable SFP CA Trade and Other Receivable
38 Office Equipment SFP NCA Property, Plant and Equipment
39 Owner’s Capital SFP Equity Capital
40 Pretty Cash fund SFP CA Other Assets
41 Plant Expansion fund SFP NCA Other Assets
42 Prepaid Advertising SFP CA Prepayments
43 Prepaid Insurance SFP CA Prepayments
44 Prepaid Taxes SFP CA Prepayments
45 Professional Fees IS Income Revenue
46 Purchases IS Expense Other Expenses
47 Raw Materials Inventory SFP CA Inventories
48 Refundable Deposits SFP NCA Other Assets
49 Rent Expense IS Expense Other Expenses
50 Representation Expense IS Expense Other Expenses
51 Salaries and Wages SFP Expense Other Expenses
52 Sales SFP Income Revenue
53 Sinking Fund SFP NCA Other Assets
54 Supplies SFP CA Inventories
55 Supplies Expenses IS Expense Operating Expenses
56 Taxes and License IS Expense Operating Expenses
57 Time deposit SFP CA Trade and Other Payable
58 Tools SFP NCA Property, Plant and Equipment
59 Transportation Expense IS Expense Operating Expenses
70 Unearned Income SFP CL Trade and Other Payable
61 Unused Supplies SFP CA Prepayments
62 Withholding Tax Payable- SFP CL Trade and other Payable
compensation