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 Statement of Changes in Equity;

Shareholders' Equity Credit (if income) or Debit (if loss)
Income (Loss) Statement of Financial Position

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

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

Cash Current Assets Statement of Financial Position Debit

Statement of Changes in Equity;

Common Shares Shareholders' Equity (Share Capital) Credit
Statement of Financial Position
Contributed CapitalReacquisition of Shareholders' Equity (Additional Statement of Changes in Equity;
Credit
Shares Contributed Capital) Statement of Financial Position

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

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
Statement of Changes in Equity
Shareholders' Equity (deduction from
Dividends (Statement of Retained Earnings Debit
Retained Earnings)
ASPE)

Dividends Payable Current Liabilities Statement of Financial Position Credit

Dividend Revenue Other Revenues and Gains Income Statement Credit

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

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,
Other Revenues and Gains Income Statement Credit
and equipment)

Goodwill Intangible Assets and Goodwill Statement of Financial Position Debit

Impairment Loss Operating Expenses Income Statement Debit

Selected List of Accounts Kimmel 5e Page 3 of 8

 ACCOUNT CLASSIFICATION AND PRESENTATION
Account Title Classification Financial Statement Normal Balance
Temporary account closed to Retained
Income Summary Not Applicable Credit (if profit) or Debit (if loss)
Earnings

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

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,

Operating Expenses Income Statement Debit
and equipment)

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

Office Expense Operating Expenses Income Statement Debit

Other Comprehensive Income (Loss)

Statement of Comprehensive Income;
(e.g., revaluation of property, plant, and Other Comprehensive Income (Loss) Credit (if income) or Debit (if loss)
Statement of Changes in Equity
equipment)

Patents Intangible Assets and Goodwill Statement of Financial Position Debit

Statement of Changes in Equity;

Preferred Shares Shareholders' Equity (Share Capital) Credit
Statement of Financial Position
Prepaid Expenses (e.g., property tax,
Current Assets Statement of Financial Position Debit
insurance, rent)

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

Shareholders' Equity (Retained Statement of Changes in Equity; Credit (if retained earnings) or Debit (if
Retained Earnings (Deficit)
Earnings) Statement of Financial Position deficit)

Revenue from Investment in Associates Other Revenues and Gains Income Statement Credit

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

Statement of Changes in Equity

Shareholders' Equity (deduction from
Stock Dividends (Statement of Retained Earnings Debit
Retained Earnings)
ASPE)

Selected List of Accounts Kimmel 5e Page 6 of 8

 ACCOUNT CLASSIFICATION AND PRESENTATION
Account Title Classification Financial Statement Normal Balance
Statement of Changes in Equity;
Stock Dividends Distributable Shareholders' Equity (Share Capital) Credit
Statement of Financial Position

Supplies Current Assets Statement of Financial Position Debit

Supplies Expense Operating Expenses Income Statement Debit

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

Unearned Revenue Current Liabilities Statement of Financial Position Credit

Union Dues Payable Current Liabilities Statement of Financial Position Credit

Unrealized Gain (e.g., trading

Other Revenues and Gains Income Statement Credit
investments under fair value model)
Unrealized Loss (e.g., trading
Other Expenses and Losses Income Statement Debit
investments under fair value model)

Utilities Expense Operating Expenses Income Statement Debit

Vehicles Property, Plant, and Equipment Statement of Financial Position Debit

Selected List of Accounts 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