Learning Objective 2 By Gayle M.Richardson

Describe the chart of accounts and recognize commonly used accounts

What is a Chart of Accounts? Each type of Asset, Liability and component of Owner’s Equity is identified by an account title and account number. The list of all of the accounts is called a “Chart of Accounts.” The List can be found in the very front of the General Ledger, also known as the “books”. Each account is represented by a page in the General Ledger (GL).

Chart of Accounts Assets 111 Cash 113 Accounts Receivable 115 Supplies 117 Prepaid Rent 141 Land 142 Building 145 Equipment Liabilities 211 Accounts Payable 212 Deferred Revenue Owner’s Equity 311 Capital, G.Rogers 312 Withdrawals, G. Rogers Revenues 411 Professional Fees Expenses 511 Wage Expense 512 Rent Expense

General Ledger Each page represents an account Filed in numerical order and balance sheet…income statement order. All entries are recorded in ink. The Book of Accounts.

Commonly Used Accounts Each business has it’s own chart of accounts dependent upon what it owns, owes, earns, spends and what type of business it is. On the inside cover of your textbook you will find common accounts and on pages Accounts are usually called just what they represent. (Cash in your bank account is called “Cash in Bank”)