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

Account Title

Classification

Financial Statement

Normal Balance

A
Accounts Payable

Current Liabilities

Statement of Financial Position

Credit

Accounts Receivable

Current Assets

Statement of Financial Position

Debit

Accumulated Amortization

Ingangible Assets and Goodwill

Statement of Financial Position

Credit (contra asset account)

Accumulated Depreciation

Property, Plant, and Equipment

Statement of Financial Position

Credit (contra asset account)

Accumulated Other Comprehensive

Income (Loss)

Shareholders' Equity

Statement of Changes in Equity;

Statement of Financial Position

Credit (if income) or Debit (if loss)

Allowance for Doubtful Accounts

Current Assets

Statement of Financial Position

Credit (contra asset account)

Allowance for Doubtful Notes

Current Assets

Statement of Financial Position

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

ACCOUNT CLASSIFICATION AND PRESENTATION

Account Title

Classification

Financial Statement

Normal Balance

Bank Loan Payable

Current or Non-Current Liabilities

Statement of Financial Position

Credit

Bonds Payable

Non-Current Liabilities

Statement of Financial Position

Credit

Buildings

Property, Plant, and Equipment

Statement of Financial Position

Debit

C
Cash

Current Assets

Statement of Financial Position

Debit

Common Shares

Shareholders' Equity (Share Capital)

Statement of Changes in Equity;

Statement of Financial Position

Credit

Contributed CapitalReacquisition of
Shares

Shareholders' Equity (Additional

Contributed Capital)

Statement of Changes in Equity;

Statement of Financial Position

Credit

Copyrights

Intangible Assets and Goodwill

Statement of Financial Position

Debit

Cost of Goods Sold

Cost of Goods Sold

Income Statement

Debit

CPP Payable

Current Liabilities

Statement of Financial Position

Credit

Credit Card Expense

Operating Expenses

Income Statement

Debit

Credit Card Receivables

Current Assets

Statement of Financial Position

Debit

D
Debit Card Expense

Operating Expenses

Income Statement

Debit

Depreciation Expense

Operating Expenses

Income Statement

Debit

Development Costs

Intangible Assets and Goodwill

Statement of Financial Position

Debit

Development Expense

Operating Expenses

Income Statement

Debit

Selected List of Accounts

Kimmel 5e

Page 2 of 8

ACCOUNT CLASSIFICATION AND PRESENTATION

Account Title

Classification

Financial Statement

Normal Balance

Dividends

Shareholders' Equity (deduction from

Retained Earnings)

Statement of Changes in Equity

(Statement of Retained Earnings
ASPE)

Debit

Dividends Payable

Current Liabilities

Statement of Financial Position

Credit

Dividend Revenue

Other Revenues and Gains

Income Statement

Credit

E
EI Payable

Current Liabilities

Statement of Financial Position

Credit

Employee Benefits Expense

Operating Expenses

Income Statement

Debit

Equipment

Property, Plant, and Equipment

Statement of Financial Position

Debit

F
Fees Earned

Revenue

Income Statement

Credit

Freight Out

Operating Expenses

Income Statement

Debit

Franchise

Intangible Assets and Goodwill

Statement of Financial Position

Debit

G
Gain on Disposal (e.g., property, plant,
and equipment)

Other Revenues and Gains

Income Statement

Credit

Goodwill

Intangible Assets and Goodwill

Statement of Financial Position

Debit

Income Statement

Debit

I
Impairment Loss

Selected List of Accounts

Operating Expenses

Kimmel 5e

Page 3 of 8

ACCOUNT CLASSIFICATION AND PRESENTATION

Account Title

Classification

Financial Statement

Normal Balance

Income Summary

Temporary account closed to Retained

Not Applicable
Earnings

Credit (if profit) or Debit (if loss)

Income Tax Expense

Income Tax Expense

Income Statement

Debit

Income Tax Payable

Current Liabilities

Statement of Financial Position

Credit

Insurance Expense

Operating Expenses

Income Statement

Debit

Interest Expense

Operating Expenses

Income Statement

Debit

Interest Payable

Current Liabilities

Statement of Financial Position

Credit

Interest Receivable

Current Assets

Statement of Financial Position

Debit

Interest Revenue

Other Revenues and Gains

Income Statement

Credit

Investment in Associates

Investments

Statement of Financial Position

Debit

L
Land

Property, Plant, and Equipment

Statement of Financial Position

Debit

Land Improvements

Property, Plant, and Equipment

Statement of Financial Position

Debit

Long-Term Investments

Investments

Statement of Financial Position

Debit

Loss on Disposal (e.g., property, plant,

and equipment)

Operating Expenses

Income Statement

Debit

M
Merchandise Inventory

Current Assets

Statement of Financial Position

Debit

Mortgage Payable

Non-Current Liabilities

Statement of Financial Position

Credit

Selected List of Accounts

Kimmel 5e

Page 4 of 8

ACCOUNT CLASSIFICATION AND PRESENTATION

Account Title

Classification

Financial Statement

Normal Balance

N
Notes Payable

Current or Non-Current Liabilities

Statement of Financial Position

Credit

Notes Receivable

Current or Non-Current Assets

Statement of Financial Position

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

Statement of Financial Position

Debit

Preferred Shares

Shareholders' Equity (Share Capital)

Statement of Changes in Equity;

Statement of Financial Position

Credit

Prepaid Expenses (e.g., property tax,

insurance, rent)

Current Assets

Statement of Financial Position

Debit

Professional Fees Expense

Operating Expenses

Income Statement

Debit

Property Tax Expense

Operating Expenses

Income Statement

Debit

Property Tax Payable

Current Liabilities

Statement of Financial Position

Credit

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

ACCOUNT CLASSIFICATION AND PRESENTATION

Account Title

Classification

Financial Statement

Normal Balance

Rent Expense

Operating Expenses

Income Statement

Debit

Rent Payable

Current Liabilities

Statement of Financial Position

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)

Statement of Changes in Equity;

Statement of Financial Position

Credit (if retained earnings) or Debit (if

deficit)

Income Statement

Credit

Revenue from Investment in Associates Other Revenues and Gains

S
Salaries Expense

Operating Expenses

Income Statement

Debit

Salaries Payable

Current Liabilities

Statement of Financial Position

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

Statement of Financial Position

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

ACCOUNT CLASSIFICATION AND PRESENTATION

Account Title

Classification

Financial Statement

Normal Balance

Stock Dividends Distributable

Shareholders' Equity (Share Capital)

Statement of Changes in Equity;

Statement of Financial Position

Credit

Supplies

Current Assets

Statement of Financial Position

Debit

Supplies Expense

Operating Expenses

Income Statement

Debit

T
Telephone Expense

Operating Expenses

Income Statement

Debit

Trademark

Intangible Assets and Goodwill

Statement of Financial Position

Debit

Trading Investments

Current Assets

Statement of Financial Position

Debit

Travel Expense

Operating Expenses

Income Statement

Debit

U
Unearned Revenue

Current Liabilities

Statement of Financial Position

Credit

Union Dues Payable

Current Liabilities

Statement of Financial Position

Credit

Unrealized Gain (e.g., trading

investments under fair value model)

Other Revenues and Gains

Income Statement

Credit

Unrealized Loss (e.g., trading

investments under fair value model)

Other Expenses and Losses

Income Statement

Debit

Utilities Expense

Operating Expenses

Income Statement

Debit

Statement of Financial Position

Debit

V
Vehicles

Selected List of Accounts

Property, Plant, and Equipment

Kimmel 5e

Page 7 of 8

ACCOUNT CLASSIFICATION AND PRESENTATION

Account Title

Classification

Financial Statement

Normal Balance

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

Ifaperiodicinventorysystemisused,theabovefouraccountswouldbeneededtorecordinventorypurchases.

Selected List of Accounts

Kimmel 5e

Page 8 of 8