ACCOUNT TITLES AS TO THEIR CLASSIFICATION, PRESENTATION AND NORMAL BALANCE Document Edition: 20190624 ACCOUNT STATEMENT | NORMAL TITLE CLASSIFICATION OF BALANCE Accounts Financial Payable Current Liability Position Credit Accounts. Financial Receivable Current Assets Position Debit Accrued Salaries Financial Payable Current Liability Position Credit Accumulated Financial Depreciation Contra Account Position. Credit Additional Paid Financial in Capital uit) Position Credit Administrative Financial Expenses Operating Expense Performance _| Debit Allowance for Doubtful Financial Accounts: Contra Account Position Credit Bad Debts Financial Expense Operating Expense Performance _| Debit Financial Bond Payable _| Non-current Liability Position Credit Financial Buildings Non-current Asset Position Debit Financial Cash Current Asset Position DebitFinancial Common Stock | Equity Position Credit Financial Copyrights Intangible Asset Position Debit Cost of Goods Financial Sold Cost of Goods Sold, Performance _| Debit Debt Current Asset/Long- Financial Instruments. Term Investment Position Debit Depreciation Financial Expense Operating Expense Performance __| Debit Discount on Financial Bonds Payable _| Contra Account Position Debit Nominal Account Closed to Retained Retained Dividends Eamings Eamings Debit Dividends Financial Payable Current Liabilit Position Credit Dividends Financial Revenue Other Income Performance __| Credit Financial Equipment Non-current Asset Position Debit Financial Fees Earned Revenue Performance _| Credit Financial Freight-In Cost of Goods Sold Performance __| Debit Financial Freight-Out Operating Expense Performance _| Debit Gain‘on Disposal of Financial Piant Assets. Other Income Performance _| Credit Financial Goodwill Intangible Asset Position Debit ‘Nominal Account - Debit (Loss) Income Closed to Retained Summary Earnings Not Applicable _| Credit (Profit) Income Tax Financial Expense Income Tax Expense __| Performance _| Debit Income Taxes Financial Payable Current Liability Position CreditInterest Payable Current Liability Insurance Financial Expense Operating Expense Performance _| Debit Interest Financial Expense Other Expense Performance Interest Notes Payable ‘Current / Non-current Liability Receivable Current Asset Position Debit Interest Financial Revenue Other Income Performance \Creait Financial Inventory, Current Asset Position Debit Financial Land Non-current Asset Position Debit Loss on Financial Disposal Other Expense Performance __| Debit Mortgage Financial Payable Non-current Liabilit Position Credit Patents Intangible Asset Debit Financial Preferred Stock | Equity Position Credit Premiums on Non-current Liability- | Financial Bonds Payable || Adjunct Position Credit Prepaid Financial Insurance Current Asset. Position Debit Financial Prepaid Rent Current Asset Position Purchase Financial Discount ‘Contra Account Position Purchase Returns and Financial Allowances Contra Account Position Credit Financial Purchases Current Asset Position Debit Financial RentExpense | Operating Expense. Performance | DebitFinancial Rent Revenue | Revenue Performance _| Credit Retained Financial Earnings Equit Position Debit Salaries and Financial Wages Operating Expense. Performance _| Debit Financial Sales Discount_.| Contra Account Position Debit Sales Retums Financial and Allowances _| Contra Account Position Debit Sales/ Sales Financial Revenue Revenue Performance _| Credit Service Financial Revenue Revenue. Performance | Credit Financial Supplies Current Asset Position Debit Supplies Expense Treasury Stock Unearned Service Revenue Current Liability _ Credit Utilities Expense | Operating Expense Adjunct account ‘An adjunct account increases the valuation of a liability account. In essence, the credit balance in this account is added to the liability account with which it is paired. The most common example of an adjunct account is the unamortized bond premium account, which is used when a business sells bonds at a premium. The unamortized bond premium and the band liability, when combined, represent the actual liability of the bond issuer. ‘This concept is the reverse of a contra account, which reduces the balance of the account with which it is paired. Source: httos://weww accountingtools.com/articies/2017/5/7/adiunct-account