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The following data were taken from stanton company's balance sheet

17/03/2021 Client: saad24vbs Deadline: 2 Day

FINANCIAL ACCOUNTING Tools for Business Decision Making

E IGHTH EDIT ION

CHART OF ACCOUNTS

The following is a sample chart of accounts. It does not represent a comprehensive chart of all the accounts used in this 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 the perpetual approach to inventory. If a periodic system was used, the following temporary accounts would be needed to record inventory purchases: Purchases, Freight-In, Purchase Returns and Allowances, and Purchase Discounts.

Assets Cash

Accounts Receivable

Allowance for Doubtful Accounts

Interest Receivable

Inventory

Supplies

Prepaid Insurance

Prepaid Rent

Land

Equipment

Accumulated Depreciation— Equipment

Buildings

Accumulated Depreciation— Buildings

Copyrights

Goodwill

Patents

Liabilities Notes Payable

Accounts Payable

Unearned Service Revenue

Salaries and Wages Payable

Interest Payable

Dividends Payable

Income Taxes Payable

Bonds Payable

Discount on Bonds Payable

Premium on Bonds Payable

Mortgage Payable

Stockholders’ Equity Common Stock

Paid-in Capital in Excess of Par Value—Common Stock

Preferred Stock

Paid-in Capital in Excess of Par Value—Preferred Stock

Treasury Stock

Retained Earnings

Dividends

Income Summary

Revenues Service Revenue

Sales Revenue

Sales Discounts

Sales Returns and Allowances

Interest Revenue

Gain on Disposal of Plant Assets

Expenses Administrative Expenses

Amortization Expense

Bad Debt Expense

Cost of Goods Sold

Depreciation Expense

Freight-Out

Income Tax Expense

Insurance Expense

Interest Expense

Loss on Disposal of Plant Assets

Maintenance and Repairs Expense

Rent Expense

Salaries and Wages Expense

Selling Expenses

Supplies Expense

Utilities Expense

ACCOUNT CLASSIFICATION AND PRESENTATION

Account Title Classification Financial Statement Normal Balance

A Accounts Payable Current Liability Balance Sheet Credit

Accounts Receivable Current A

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