EX 6-9 Chart of accounts
Do-Right Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order below.
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Accounts Payable |
Miscellaneous Administrative Expense |
|
Accounts Receivable |
Miscellaneous Selling Expense |
|
Accumulated Depreciation—Office Equipment |
Notes Payable |
|
Accumulated Depreciation—Store Equipment |
Office Equipment |
|
Advertising Expense |
Office Salaries Expense |
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Cash |
Office Supplies |
|
Cost of Merchandise Sold |
Office Supplies Expense |
|
Delivery Expense |
Prepaid Insurance |
|
Depreciation Expense—Office Equipment |
Rent Expense |
|
Depreciation Expense—Store Equipment |
Salaries Payable |
|
Income Summary |
Sales |
|
Insurance Expense |
Sales Discounts |
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Interest Expense |
Sales Returns and Allowances |
|
Jamie Ricardi, Capital |
Sales Salaries Expense |
|
Jamie Ricardi, Drawing |
Store Equipment |
|
Land |
Store Supplies |
|
Merchandise Inventory |
Store Supplies Expense |
Construct a chart of accounts, assigning account numbers and arranging the accounts in balance sheet and income statement order, as illustrated in Exhibit 5. Each account number is three digits: the first digit is to indicate the major classification (“1” for assets, and so on); the second digit is to indicate the subclassification (“11” for current assets, and so on); and the third digit is to identify the specific account (“110” for Cash, “112” for Accounts Receivable, “114” for merchandise Inventory, “115” for Store Supplies, and so on).