Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Chart of Accounts
Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows:
Assign account numbers and specify whether each account would appear on the balance sheet or income statement order, as illustrated below. Each account number is three digits: the first digit is to indicate the major classification (1 for assets, for example); the second digit is to indicate the subclassification (11 for current assets, for example); and the third digit is to identify the specific account (110 for Cash, 112 for Accounts Receivable, 114 for Merchandise Inventory, etc.).
Balance Sheet Accounts Income Statement Accounts
100 Assets 400 Revenues
110 Cash 410 Sales
112 Accounts Receivable 500 Costs and Expenses
115 Merchandise Inventory 510 Cost of Merchandise Sold
117 Office Supplies 520 Sales Salaries Expense
118 Prepaid Insurance 521 Advertising Expense
120 Land 522 Depreciation ExpenseStore Equipment
123 Store Equipment
124 Accumulated DepreciationStore Equipment 523 Delivery Expense
529 Miscellaneous Selling Expense
125 Office Equipment 530 Office Salaries Expense
126 Accumulated DepreciationOffice Equipment 531 Rent Expense
200 Liabilities 532 Depreciation ExpenseOffice Equipment
210 Accounts Payable 533 Insurance Expense
211 Salaries Payable 534 Office Supplies Expense
212 Unearned Rent 539 Misc. Administrative Expense
213 Customer Refunds Payable 600 Other Revenue
215 Notes Payable 610 Rent Revenue
300 Owners Equity 700 Other Expense
310 Kalley Garner, Capital 710 Interest Expense
311 Kalley Garner, Drawing
Note: If an account would not appear on either the Balance Sheet or the Income Statement, select "N/A".
Account Financial Statement Major Classification Possible Account Number
Accounts Payable
Accounts Receivable
Accumulated DepreciationOffice Equipment
Accumulated DepreciationStore Equipment
Advertising Expense
Cash
Cost of Merchandise Sold
Customer Refunds Payable
Delivery Expense
Depreciation ExpenseOffice Equipment
Depreciation ExpenseStore Equipment
Insurance Expense
Interest Expense
Kalley Garner, Capital
Kalley Garner, Drawing
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
Salaries Payable
Sales
Sales Salaries Expense
Store Equipment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools For Business Decision Making

Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

8th Edition

1119316022, 978-1119316022

More Books

Students also viewed these Accounting questions