Account Classification and Debit/Credit Relationship
Instructions: Using the format provided, identify for each account, including an asterisk for contra accounts:
1. Whether the account will appear on a balance sheet (B/S), income statement (I/S), or neither (N)
2. Whether the account is an asset (A), liability (L), owners’ equity (OE), revenue (R), expense (E), or other (O)
3. Whether the account is real or nominal
4. Whether the account will be “closed” or left “open” at year-end
5. Whether the account normally has a debit (Dr.) or a credit (Cr.) balance

 

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Account Title Example: Cash (1) B/S, I/S, N B/S (a) Unearned Rent Revenue (b) Accounts Receivable (c) Inventory (d) Accounts Payable (e) Prepaid Rent (f) Mortgage Payable (g) Sales (h) Cost of Goods Sold Dividends (1) () Dividends Payable Interest Receivable (k) (1) Wages Expense (m) Interest Revenue (n) Supplies (0) Accumulated Depreciation (p) Retained Earnings (a) Discount on Bonds Payable (r) Goodwill (s) Additional Paid-In Capital (2) A, L, OE, R, E, O A (3) Roal or Nominal Real Closed or Open Open (5) Debit (Dr.) or Credit (Cr.) Dr. Account Title Example: Cash (1) B/S, I/S, N B/S (a) Unearned Rent Revenue (b) Accounts Receivable (c) Inventory (d) Accounts Payable (e) Prepaid Rent (f) Mortgage Payable (g) Sales (h) Cost of Goods Sold Dividends (1) () Dividends Payable Interest Receivable (k) (1) Wages Expense (m) Interest Revenue (n) Supplies (0) Accumulated Depreciation (p) Retained Earnings (a) Discount on Bonds Payable (r) Goodwill (s) Additional Paid-In Capital (2) A, L, OE, R, E, O A (3) Roal or Nominal Real Closed or Open Open (5) Debit (Dr.) or Credit (Cr.) Dr.

Answer rating: 100% (QA)

The specific heading in which each acc... View the full answer