Accounting Classification ASSETS These items are owned by the corporation, and have future value for the corporation. Account Title
Statement
Classification
Increase
Decrease
Cash Short-term Investments Notes Receivable Interest Receivable Accounts Receivable Allowance for Doubtful Accounts Inventory Supplies Prepaid Rent Prepaid Insurance Investment in shares of Intel Corporation Stock Investment in real estate Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation-Equipment Copyright Trade Mark Trade Name Goodwill
LIABILITIES These items are debt owed to either individuals or corporations, and must be paid in the future by the corporation. Account Title Notes payable Accounts payable Dividends payable Unearned revenue Interest payable Salaries and wages payable Income tax payable Bonds payable Mortgage payable Long-Term Notes payable Employee benefits payable MJC Revised 10/2011
Classification Current liability Current liability Current liability Current liability Current liability Current liability Current liability Long-Term liability Long-Term liability Long-Term liability Long-Term liability
Increase Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side Credit Side
Decrease Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Debit Side Page 1
Accounting Classification Stockholders’ Equity The corporation from the investors receives these items, or it is income retained in the corporation. Account Title Preferred Stock In excess of par valuepreferred stock Common Stock In excess of par value – common stock Dividends Retained Earnings Treasury Stock
Classification Paid-in capital Additional paid-in capital Paid-in capital Additional paid-in capital Equity Equity Equity
Increase Credit Side Credit Side
Decrease Debit Side Debit Side
Credit Side Credit Side
Debit Side Debit Side
Debit Side Credit Side Debit Side
Credit Side Debit Side Credit Side
REVENUES These accounts represent the income earned by the corporation from the customers. Account Title Sales revenue Service revenue Rent revenue Interest revenue
Statement Income statement Income statement Income statement Income statement
Classification Revenue Revenue Revenue Revenue
Increase Credit Side Credit Side Credit Side Credit Side
Decrease Debit Side Debit Side Debit Side Debit Side
EXPENSES This is the cost incurred by the corporation in the process of doing business. Account Title Cost of goods sold Administration expenses Selling expenses Salaries and wages expense Rent Expense Insurance expense Interest expense Travel expense Depreciation expense
MJC Revised 10/2011
Statement Income statement Income statement Income statement Income statement Income statement Income statement Income statement Income statement Income statement
