LEARNING ACTIVITY #4

Provide a diagram for chart of accounts from “left “to “right” and its subset given below.
ANSWER

OWNERS EQUITY(LEFT) OWNERS

•PERMANENT
WITHDRAWAL
EQUITY(RIGHT)
•TEMPORARY
DRAWING WITHDRAWAL

• OWNERS
CAPITAL
• OWNERS ADD'T
ASSETS EXPENSE CONTRA ASSETS DRAWING INVESTMENT
• COST OF SALES
• SALARIES AND WAGES • ALLOWANCE FOR
• INSURANCE EXP. DOUBTFUL ACCOUNTS
• TAXES AND LISCENCES CONTRA • ACCUMULATED
EXPENSES EXP. DEPRECIATION
• TEMPORARY ASSETS • ACC. DEP (BLDG)
WITHDRAWAL
▪ Cash
▪ PPE

▪Land
▪ Cash

▪ Account Receivable
▪Building
▪ Notes Receivable ▪Machinery and
▪ Accrued Income Equipment
▪ Advances TO NON ▪Furniture and
Employees CURRENT Fixture
CURRENT
▪ Merchandise Inventory ASSETS ▪Accumulated
ASSETS ▪ Trading Securities Depreciation
▪ Allowance for Doubtful ▪Intangible Assets
account
▪ Prepaid Expenses

REVENUE / INCOME

•SALES INCOME •SERVICE INCOME

•GAIN ON SALES •PROFESSIONAL FEES
SALES AND OTHER ASSETS SERVICES •RENT INCOME

LIABILITIES

▪ Notes Payable ▪ Cash

▪ Accrued ▪ Bonds Payable

Expenses LONG TERM ▪ Mortgage
SHORT TERM
LIABILITIES ▪ Unearned LIABILITIES Payable
Income

PREPARED BY: CHARLIE S. MARIN