Professional Documents
Culture Documents
HelpLesson #1
Understanding Accounts
By Laurie L. Swanson
Revenue
Expense
Asset
Accounts
Payable
Notes
Payable
Mortgage
Payable
Liability
K. Jones,
Capital
K. Jones,
Drawing
Consulting
Revenue
Interest
Income
Plumbing
Fees
Earned
Sales
Utilities
Expense
Rent
Expense
Salaries
Expense
Owners
Revenue
Expense
Equity
Chart of Accounts
A Chart of Accounts is a listing of each specific account under
major account categories.
Chart of Accounts
Assets
Owners Equity
Cash
Karen Jones, Capital
Accounts Receivable
Karen Jones, Drawing
Office Supplies
Revenue
Office Equipment
Consulting Income
Building
Expenses
Liabilities
Rent Expense
Accounts Payable
Utilities Expense
Mortgage Payable
Wages Expense
Interest Expense
Chart of Accounts
Accountants refer to the Chart of Accounts to help them
determine the appropriate accounts in which to record
transactions.
Asset
Liability
Cash
K. Jones, Drawing
Mortgage Payable
Office Equipment
Concession Sales
Interest Income
Owners
Revenue
Expense
Equity
Categorizing Accounts
Accounts Payable
Building
Accounts Receivable
Salaries Expense
K. Jones, Capital
Utilities Expense
Asset
Cash
Liability
Accounts
Payable
Accounts
Receivable Mortgage
Payable
Building
Office
Equipment
Cash
K. Jones, Drawing
Mortgage Payable
Office Equipment
Concession Sales
Interest Income
Owners
Revenue
Expense
Equity
K. Jones,
Capital
Concession Utilities
Sales
Expense
K. Jones,
Drawing
Interest
Income
Salaries
Expense
Next Step
Now that we have laid a partial
foundation, we can begin to learn
how to analyze transactions.