A table of twenty-five accounts, each typed, placed on its statement and given its normal balance, with reasoning under the tricky rows: AC114's Unit 2 account classification exercise. Searches like "ac 114 unit 2 assignment example", "ac114 unit 2 sample" and "ac114 unit 2 example" land here.
What a finished AC114 Unit 2 account classification exercise looks like
A single table does nearly all the work. Its rows are account titles taken from the chart the problem supplies, often twenty-five or so, numbered in the usual blocks with assets first and expenses last. Its columns are fixed: account type, subtype where one applies, the statement the account appears on, its normal balance, the side that increases it and the side that decreases it. Most rows are routine. A handful are the reason the exercise exists, and those carry a short note beneath the table: unearned revenue sits with liabilities because the work is still owed; accumulated depreciation belongs with assets yet carries a credit balance; the owner's drawing account reduces equity without being an expense; prepaid rent stays an asset until the month it covers has passed. No cell in the table is left blank.
How a AC114 Unit 2 example is structured
The rows follow the chart's own numbering rather than alphabetical order, so the table doubles as a check that the chart itself is understood: a liability numbered among the assets would be visible at once. Columns run from broad to narrow, type before subtype before statement, which mirrors how the decision is actually made. Normal balance and the increase side appear as separate columns even though they usually agree, because the contra accounts are exactly where they differ and graders look there first. The notes sit below the table rather than inside it, keyed by row number, so the grid stays readable and the reasoning stays findable. Each note runs one or two sentences and names the principle behind the classification. A final line in many samples lists which accounts are temporary and will close at period end.
Chart order, not alphabetical
Rows numbered in blocks, assets through expenses, so a misplaced account shows up as a number out of sequence as well as a wrong label.
Six fixed columns
Type, subtype, statement, normal balance, increase side, decrease side. Every row fills every column, including the routine ones nobody doubts.
The contra accounts
Accumulated depreciation and sales returns sit opposite their parent accounts, and the notes explain why their balances run the other way.
Liabilities that look like revenue
Unearned revenue classified as an obligation, with a note that cash received before the work is done is owed back in service.
Temporary or permanent
A closing line listing the accounts that reset each period, which the closing unit will depend on later in the term.
Where marks go in AC114 Unit 2
The contra rows are where most points go. Accumulated depreciation given a debit normal balance, or classified as a liability, is the classic error, and a grader checks it first. Unearned revenue placed among revenues loses points in nearly every section, since the course treats the timing of revenue as a central idea from the opening units. Drawing or dividends labeled as an expense is marked wrong for the same reason it will be marked wrong at closing. Prepaid items typed as expenses cost a smaller amount. Beyond individual rows, a table with blank cells for the routine accounts loses completeness points, and classifications that contradict one another, an account typed as an asset but placed on the income statement, suggest guessing. Notes that restate the answer without naming the principle earn part credit.
Get a AC114 Unit 2 example written to your instructions
Send the chart of accounts your AC114 section uses for Unit 2 with the instructions and rubric, and the classification table is built on those exact titles. It arrives inside 24-48h. No fee applies to the first custom sample, and every tricky row carries the reasoning your grader will be looking for.
AC114 Unit 2 questions, answered
Why does accumulated depreciation have a credit balance if it is an asset account?
Because it is a contra asset: it sits under the asset it relates to and reduces it. Equipment keeps its original cost as a debit, and the portion used up so far accumulates as a credit beside it, so a reader can see both figures. Their difference is the book value that later appears on the balance sheet.
Is the drawing account an expense or part of equity?
Part of equity, carried as a reduction. Expenses are costs of producing revenue; drawing records cash or assets the owner removed for personal use. It carries a debit balance like an expense does, which causes the confusion, but it never appears on the income statement and it closes directly to capital, bypassing the summary account used for revenues and expenses.
Does classification really matter this early?
More than its position suggests. AC114 builds each unit on the last, so an account misclassified in Unit 2 tends to be posted to the wrong side in Unit 4, extended to the wrong column in Unit 6 and closed incorrectly in Unit 8. Graders who teach the sequence know that, which is why this table is marked with care.