Below is a drill on the major accounts (elements) and commonly used account titles.

The purpose of this drill is for your familiarization of common terms used and how they are
classified.
Before proceeding, let me summarize the accounts which will serve as your basis in answering
the drill:

ASSET LIABILITY OWNERS' EQUITY INCOME EXPENSE

Accruals or
Cash Owner's Capital Sales Cost of Sale
Payables
Operating or
Receivable Deposits Owner's Drawing Revenue
Administrative
Deferrals or
Inventory Net Income Gain Marketing or Selling
Unearned Items
Prepaid Items Financing
Land Long-term Portion Investing
Building of Notes Payable

Furniture and
Bonds Payable
Fixture
Equipment and
Mortgage Payable
Machinery
Motor Vehicle
Intangibles

Investment
# ITEM ELEMENT ACCOUNT TITLE NORMAL BALANCE
0 Gymnasium Asset Building Debit
1 Bills and Coins Asset Cash Debit
2 Character Loan Liability Credit
3 Delivery Van Asset Motor Vehicle Debit
4 Commercial Lot
5 Computer Set Asset Equipment and Machinery Debit
6 Warehouse Asset Building Debit
7 Rent for the 4th quarter of Expense Operating or Debit
2020 collected today Administrative
8 Cash provided by owner Owner’s Equity Owner’s Capital Credit
9 Insurance for one year Asset Prepaid Items Debit
10 Loan secured by a property Liability Credit
11 Venetian or Louver Blinds
12 Amount paid for haircut of Owner’s Equity Owner’s Drawing Debit
owner
13 Goods in the stockroom Asset Inventory Debit
14 Copyright
15 Pedicab Asset Motor Vehicle Debit
16 Amount lent to helper Expense Operating or Debit
Administrative
17 Unpaid salaries Liabilities Accruals or Payables Credit
18 Related Business Venture
19 Tables and Chairs Asset Furniture and Fixture Debit
20 Legal Income Income Credit
21 Amount Received from
Commodities Disposed
22 Acquisition cost
23 Electricity and water Expense Operating or Debit
Consumed Administrative
24 Cost of Tarpaulin Expense Marketing or Selling Debit
25 Interest paid to a bank
26 Bank Deposit
27 Plant assembly line
28 3-year bank barrowing
29 Amount received by a
professional for services
rendered
30 Payroll for the week