Bookkeeping - General Ledger Accounts | AccountingCoach

The chart of accounts is organized similar to the general ledger: balance sheet accounts followed by the income statement accounts. Bookkeeping(Explanation) PrintPDF Part1 IntroductiontoBookkeeping,Bookkeeping:PastandPresent Part2 AccrualMethod Part3 Double-Entry,DebitsandCredits Part4 GeneralLedgerAccounts Part5 DebitsandCreditsintheAccounts Part6 AssetAccounts Part7 LiabilityandStockholders'EquityAccounts Part8 IncomeStatementAccounts Part9 RecordingTransactions,BankReconciliation Part10 AdjustingEntries,ReversingEntries Part11 BalanceSheet,IncomeStatement,BalanceSheetandIncomeStatementareLinked Part12 CashFlowStatement Part13 StatementofStockholders'Equity,ClosingCut-Off,ImportanceofControls GeneralLedgerAccounts Theaccountsthatareusedtosortandstoretransactionsarefoundinthecompany'sgeneralledger.Thegeneralledgerisoftenarrangedaccordingtothefollowingsevenclassifications.(Afewexamplesoftherelatedaccounttitlesareshowninparentheses.) Assets(Cash,AccountsReceivable,Land,Equipment) Liabilities(LoansPayable,AccountsPayable,BondsPayable) Stockholders'equity(CommonStock,RetainedEarnings) Operatingrevenues(Sales,ServiceFees) Operatingexpenses(SalariesExpense,RentExpense,DepreciationExpense) Non-operatingrevenuesandgains(InvestmentIncome,GainonDisposalofTruck) Non-operatingexpensesandlosses(InterestExpense,LossonDisposalofEquipment) BalanceSheetAccounts Thefirstthreeclassificationsarereferredtoasbalancesheetaccountssincethebalancesintheseaccountsarereportedonthefinancialstatementknownasthebalancesheet. Balancesheetaccounts Assets Liabilities Stockholders'(orOwner's)equity Thebalancesheetaccountsarealsoknownaspermanentaccounts(orrealaccounts)sincethebalancesintheseaccountswillnotbeclosedattheendofanaccountingyear.Instead,theseaccountbalancesarecarriedforwardtothenextaccountingyear. IncomeStatementAccounts Thefourremainingclassificationsofaccountsarereferredtoasincomestatementaccountssincetheamountsintheseaccountswillbereportedonthefinancialstatementknownastheincomestatement. Incomestatementaccounts Operatingrevenues Operatingexpenses Non-operatingrevenuesandgains Non-operatingexpensesandlosses Theincomestatementaccountsarealsoknownastemporaryaccountssincethebalancesintheseaccountswillbeclosedattheendoftheaccountingyear.Eachincomestatementaccountisclosedinordertobeginthenextaccountingyearwithazerobalance. Theyear-endbalancesfromalloftheincomestatementaccountswillbecombinedandenteredasasinglenetamountinRetainedEarnings(abalancesheetaccountwithinstockholders'equity)orinaproprietor'scapitalaccount. Note:Ifanaccounthasnothadanyactivityinthecurrentorrecentperiods,itisoftenomittedfromthecurrentgeneralledger. ChartofAccounts Thechartofaccountsissimplyalistofalloftheaccountsthatareavailableforrecordingtransactions.Thismeansthatthenumberofaccountsinthechartofaccountswillbegreaterthanthenumberofaccountsinthegeneralledger.(Thereasonisthataccountswithzerobalancesandnorecententriesareoftenomittedfromthegeneralledgeruntilthereisatransactionfortheaccount.) Thechartofaccountsisorganizedsimilartothegeneralledger:balancesheetaccountsfollowedbytheincomestatementaccounts.However,thechartofaccountsdoesnotcontainanyentriesoraccountbalances. Thechartofaccountsallowsyoutofindthenameofanaccount,itsaccountnumber,andperhapsabriefdescription.Itisimportanttoexpandand/oralterthechartofaccountstoaccommodatethechangestoanorganizationandwhenthereisaneedforimprovedreportingofinformation. Insomeaccountingsoftware,thechartofaccountsisalsousedtodesignatewhereanaccountwillbereportedinthefinancialstatements. Confused?SendFeedback MarkPart4asComplete Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next BookkeepingOutline 0% ReadourExplanation(13Parts)free Part1 Part2 Part3 Part4Youarehere Part5 Part6 Part7 Part8 Part9 Part10 Part11 Part12 Part13 TakeourPracticeQuizfree WatchourBookkeepingVideoTraining ReadourGuidetoBookkeepingConcepts ReviewourQ&Afree ReviewourFlashcards SolveourWordScramblefree SolveourCrosswordPuzzlefree ReviewourCheatSheet TakeourQuickTest#1 TakeourQuickTest#2 TakeourBookkeepingTestforProspectiveEmployees#1 TakeourBookkeepingTestforProspectiveEmployees#2 TakeourBookkeepingTestforProspectiveEmployees#3 0 CertificatesofAchievement Wenowoffer10CertificatesofAchievementforIntroductoryAccountingandBookkeeping.ThecertificatesincludeDebitsandCredits,AdjustingEntries,FinancialStatements,BalanceSheet,IncomeStatement,CashFlowStatement,WorkingCapitalandLiquidity,FinancialRatios,BankReconciliation,andPayrollAccounting.Clickheretolearnmore. 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ViewPROFeatures→ Pleaseletusknowhowwecanimprovethisexplanation SubmitFeedback NoThanks JoinPROorPROPlusandGetLifetimeAccesstoOurPremiumMaterials Readall2,238Testimonials PRO LifetimeAccess PROPlus LifetimeAccess VideoTraining Flashcards VisualTutorials QuickTests QuickTestswithCoaching CheatSheets BusinessForms AllPDFfiles ProgressTracking Certificate-DebitsandCredits Certificate-AdjustingEntries Certificate-FinancialStatements Certificate-BalanceSheet Certificate-IncomeStatement Certificate-CashFlowStatement Certificate-WorkingCapital Certificate-FinancialRatios Certificate-BankReconciliation Certificate-PayrollAccounting LearnMore LearnMore AbouttheAuthor HaroldAverkamp(CPA,MBA)hasworkedasauniversityaccountinginstructor,accountant,andconsultantformorethan25years.HeisthesoleauthorofallthematerialsonAccountingCoach.com.Readmoreabouttheauthor. AllTopics Bookkeeping Financial Managerial Suggested Alphabetical HowtoBegin(Video) 01.AccountingBasics 02.DebitsandCredits 03.ChartofAccounts 04.Bookkeeping 05.AccountingEquation 06.AccountingPrinciples 07.FinancialAccounting 08.AdjustingEntries 09.FinancialStatements 10.BalanceSheet 11.WorkingCapitalandLiquidity 12.IncomeStatement 13.CashFlowStatement 14.FinancialRatios 15.BankReconciliation 16.AccountsReceivableandBadDebtsExpense 17.AccountsPayable 18.InventoryandCostofGoodsSold 19.Depreciation 20.PayrollAccounting 21.BondsPayable 22.Stockholders'Equity 23.PresentValueofaSingleAmount 24.PresentValueofanOrdinaryAnnuity 25.FutureValueofaSingleAmount 26.NonprofitAccounting 27.Break-evenPoint 28.ImprovingProfits 29.EvaluatingBusinessInvestments 30.ManufacturingOverhead 31.NonmanufacturingOverhead 32.ActivityBasedCosting 33.StandardCosting AccountingCareers CertificatesofAchievement TaketheTour Join521,533subscribers Youarealreadysubscribed.Thisofferisnotavailabletoexistingsubscribers. 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