BALANCE SHEET

ACCOUNT TITLE CLASSIFICATION NORMAL BALANCE

A
Accounts Payable Current Liability Credit
Accounts Receivable Current Asset Debit
Accumulated Depreciation Contra Asset Credit
Allowance for Doubtful Accts. Current Asset- Contra Credit
B
Bonds Payable Long Term Liability Credit
Buildings Asset Debit
C
Cash Current Asset Debit
Common Stock Owner’s Equity Credit
Copyrights Intangible Asset Debit
D
Debts Investments Current Asset/ Long Term Debit
Investments
Discounts on Bonds Payable Long Term Liability- Contra Debit
Dividends Payable Current Liability Credit
E
Equipment Asset Debit
G
Goodwill Intangible Asset Debit
I
Income Taxes Payable Current Liability Credit
Interest Payable` Current Liability Credit
Interest Receivable Current Asset Debit
Inventory Current Asset Debit
L
Land Asset Debit
M
Mortgage Payable Long Term Liability Credit
N
Notes Payable Current Liability/ Long Term Liab. Credit
P
Patents Intangible Assets Debit
Paid in Capital in Excess of Par- Owner’s Equity Credit
Common Stock
Paid in Capital in Excess of Par- Owner’s Equity Credit
Preferred Stock
Preferred Stock Owner’s Equity Credit
Premiums on Bonds Payable Long Term Liability-Adjust Credit
Prepaid Insurance Current Asset Debit
Prepaid Rent Current Asset Debit
R
Retained Earnings Owner’s Equity (also can appear Credit
to Statement of Changes in O.E)
S
Salaries and Wages Payable Current Liability Credit
Stock Investments Current Asset/ Long Term Debit
Investment
Supplies Current Asset Debit
T
Treasury Stock Owner’s Equity Debit
U
Unearned Services Revenue Current Liability Credit
 INCOME STATEMENT
ACCOUNT TITLE CLASSIFICATION NORMAL BALANCE
A
Advertising Expense Operating Expense Credit
Amortization Expense Operating Expense Credit
B
Bad Debt Expense Operating Expense Debit
C
Cost of Goods Sold COGS Debit
D
Depreciation Expense Operating Expense Debit
Dividend Revenue Other Income Credit
F
Freight Out Operating Expense Debit
G
Gains on Asset Disposal Other Income Credit
I
Income Tax Expense Income Tax Expense Debit
Insurance Expense Operating Expense Debit
Interest Expense Other Expense Debit
Interest Revenue Other Income Credit
L
Loss on Asset Disposal Other Expense Debit
M
Maintenance and Repairs Operating Expense Debit
Expense
R
Rent Expense Operating Expense Debit
S
Salaries and Wages Expense Operating Expense Debit
Sales Discount Revenue- Contra Debit
Sales Ret. and Allowance Revenue-Contra Debit
Sales Revenue Revenue Credit
Selling Expense Operating Expense Debit
Service Revenue Revenue Credit
Supplies Expense Operating Expense Debit
U
Utilities Expense Operating Expense Debit