Chart of accounts OBJ. 2 Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows:

Accounts Payable Accounts Receivable Accumulated Depreciation—Office Equipment Accumulated Depreciation—Store Equipment Advertising Expense Cash Common Stock Cost of Merchandise Sold Delivery Expense Depreciation Expense—Office Equipment Depreciation Expense—Store Equipment Dividends Income Summary Insurance Expense Interest Expense Land Merchandise Inventory Miscellaneous Administrative Expense Miscellaneous Selling Expense Notes Payable Office Equipment Office Salaries Expense Office Supplies Office Supplies Expense Prepaid Insurance Rent Expense Retained Earnings Salaries Payable Sales Sales Salaries Expense Store Equipment Store Supplies 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 9. 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).