Selected List of Accounts Kimmel, Weygandt, Kieso, Trenholm, Irvine Financial Accounting: Tools for Business Decision-Making, Fifth Canadian Edition The following is a sample of account titles. It does not represent a comprehensive chart of all the accounts used in the textbook but rather those accounts that are commonly used. This sample chart of accounts is for a company that generates both service revenue as well as sales revenue. It uses a perpetual inventory system. Accounts used in a periodic inventory system follow at the end of this chart of accounts. ACCOUNT CLASSIFICATION AND PRESENTATION A Accounts Payable Current Liabilities Credit Accounts Receivable Current Assets Debit Accumulated Amortization Ingangible Assets and Goodwill Credit (contra asset account) Accumulated Depreciation Property, Plant, and Equipment Credit (contra asset account) Accumulated Other Comprehensive Income (Loss) Shareholders' Equity Credit (if income) or Debit (if loss) Allowance for Doubtful Accounts Current Assets Credit (contra asset account) Allowance for Doubtful Notes Current Assets Credit (contra asset account) Amortization Expense Operating Expenses Income Statement Debit B Bad Debts Expense Operating Expenses Income Statement Debit Bank Charges Expense Operating Expenses Income Statement Debit Selected List of Accounts Kimmel 5e Page 1 of 8
Bank Loan Payable Current or Non-Current Liabilities Credit Bonds Payable Non-Current Liabilities Credit Buildings Property, Plant, and Equipment Debit C Cash Current Assets Debit Common Shares Contributed Capital Reacquisition of Shares Shareholders' Equity (Share Capital) Shareholders' Equity (Additional Contributed Capital) Credit Credit Copyrights Intangible Assets and Goodwill Debit Cost of Goods Sold Cost of Goods Sold Income Statement Debit CPP Payable Current Liabilities Credit Credit Card Expense Operating Expenses Income Statement Debit Credit Card Receivables Current Assets Debit D Debit Card Expense Operating Expenses Income Statement Debit Depreciation Expense Operating Expenses Income Statement Debit Development Costs Intangible Assets and Goodwill Debit Development Expense Operating Expenses Income Statement Debit Selected List of Accounts Kimmel 5e Page 2 of 8
Dividends ACCOUNT CLASSIFICATION AND PRESENTATION Shareholders' Equity (deduction from Retained Earnings) Statement of Changes in Equity (Statement of Retained Earnings ASPE) Dividends Payable Current Liabilities Credit Debit Dividend Revenue Other Revenues and Gains Income Statement Credit E EI Payable Current Liabilities Credit Employee Benefits Expense Operating Expenses Income Statement Debit Equipment Property, Plant, and Equipment Debit F Fees Earned Revenue Income Statement Credit Freight Out Operating Expenses Income Statement Debit Franchise Intangible Assets and Goodwill Debit G Gain on Disposal (e.g., property, plant, and equipment) Other Revenues and Gains Income Statement Credit Goodwill Intangible Assets and Goodwill Debit I Impairment Loss Operating Expenses Income Statement Debit Selected List of Accounts Kimmel 5e Page 3 of 8
Income Summary ACCOUNT CLASSIFICATION AND PRESENTATION Temporary account closed to Retained Earnings Not Applicable Income Tax Expense Income Tax Expense Income Statement Debit Credit (if profit) or Debit (if loss) Income Tax Payable Current Liabilities Credit Insurance Expense Operating Expenses Income Statement Debit Interest Expense Operating Expenses Income Statement Debit Interest Payable Current Liabilities Credit Interest Receivable Current Assets Debit Interest Revenue Other Revenues and Gains Income Statement Credit Investment in Associates Investments Debit L Land Property, Plant, and Equipment Debit Land Improvements Property, Plant, and Equipment Debit Long-Term Investments Investments Debit Loss on Disposal (e.g., property, plant, and equipment) Operating Expenses Income Statement Debit M Merchandise Inventory Current Assets Debit Mortgage Payable Non-Current Liabilities Credit Selected List of Accounts Kimmel 5e Page 4 of 8
N Notes Payable Current or Non-Current Liabilities Credit Notes Receivable Current or Non-Current Assets Debit O Office Expense Operating Expenses Income Statement Debit Other Comprehensive Income (Loss) (e.g., revaluation of property, plant, and equipment) Other Comprehensive Income (Loss) Statement of Comprehensive Income; Statement of Changes in Equity Credit (if income) or Debit (if loss) P Patents Intangible Assets and Goodwill Debit Preferred Shares Prepaid Expenses (e.g., property tax, insurance, rent) Shareholders' Equity (Share Capital) Credit Current Assets Debit Professional Fees Expense Operating Expenses Income Statement Debit Property Tax Expense Operating Expenses Income Statement Debit Property Tax Payable Current Liabilities Credit R Realized Gain (e.g., trading investments) Other Revenues and Gains Income Statement Credit Realized Loss (e.g, trading investments) Other Expenses and Losses Income Statement Debit Selected List of Accounts Kimmel 5e Page 5 of 8
Rent Expense Operating Expenses Income Statement Debit Rent Payable Current Liabilities Credit Rent Revenue Other Revenues and Gains Income Statement Credit Repairs and Maintenance Expense Operating Expenses Income Statement Debit Research Expense Operating Expenses Income Statement Debit Retained Earnings (Deficit) Shareholders' Equity (Retained Earnings) Credit (if retained earnings) or Debit (if deficit) Revenue from Investment in Associates Other Revenues and Gains Income Statement Credit S Salaries Expense Operating Expenses Income Statement Debit Salaries Payable Current Liabilities Credit Sales Revenue Income Statement Credit Sales Discounts Revenue Income Statement Debit (contra revenue account) Sales Returns and Allowances Revenue Income Statement Debit (contra revenue account) Sales Tax Payable Current Liabilities Credit Service Revenue Revenue Income Statement Credit Stock Dividends Shareholders' Equity (deduction from Retained Earnings) Statement of Changes in Equity (Statement of Retained Earnings ASPE) Debit Selected List of Accounts Kimmel 5e Page 6 of 8
Stock Dividends Distributable Shareholders' Equity (Share Capital) Credit Supplies Current Assets Debit Supplies Expense Operating Expenses Income Statement Debit T Telephone Expense Operating Expenses Income Statement Debit Trademark Intangible Assets and Goodwill Debit Trading Investments Current Assets Debit Travel Expense Operating Expenses Income Statement Debit U Unearned Revenue Current Liabilities Credit Union Dues Payable Current Liabilities Credit Unrealized Gain (e.g., trading investments under fair value model) Unrealized Loss (e.g., trading investments under fair value model) Other Revenues and Gains Income Statement Credit Other Expenses and Losses Income Statement Debit Utilities Expense Operating Expenses Income Statement Debit V Vehicles Property, Plant, and Equipment Debit Selected List of Accounts Kimmel 5e Page 7 of 8
PERIODIC INVENTORY SYSTEM Freight In Cost of Goods Sold Income Statement Debit Purchase Discounts Cost of Goods Sold Income Statement Credit Purchase Returns and Allowances Cost of Goods Sold Income Statement Credit Purchases Cost of Goods Sold Income Statement Debit If a periodic inventory system is used, the above four accounts would be needed to record inventory purchases. Selected List of Accounts Kimmel 5e Page 8 of 8