Identifying type of account, debit/credit analysis and normal balance Logan Party Hut’s ledger accounts are listed below:

Required

(a) For each account listed above, complete a solution form as shown below by placing a tick in the proper columns to indicate the type of account, the side of a T account on which increases are recorded, and the side on which normal balances are recorded.

(b) Prepare an appropriate chart of accounts for the business. Use the following digits for account classes: assets, 1; liabilities, 2; equity, 3; income, 4; expenses, 5. Within each category, assign a 3-digit code for each account.

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1 Accounts payable 14 Office equipment 2 Accounts receivable 15 Office supplies on hand 3 Cash at bank 16 Office supplies used 4 GST payable 17 Prepaid insurance 5 GST receivable 18 Rent revenue 6 Insurance expense 19 Sales revenue 7 Interest expense 20 Shop fittings 8 Interest receivable 21 Sundry revenue 9 Interest revenue 22 Unearned revenue 10 John Logan, capital 23 Utilities account payable 11 John Logan, drawings 24 Wages expense 12 Loan payable 25 Wages payable 13 Mortgage payable 26 Warehouse expense