Construct a chart of accounts, assigning account numbers and arranging the accounts in balance sheet and income statement order (“1” for assets, and so on). Each account number is three digits. Contra accounts should designate with a decimal of the account (100.1 for contra of account 100). Assets and liabilities should be in order of liquidity, expenses should be in alphabetical order.

Accounts Payable                             Equipment                                                          Supplies Expense

Accounts Receivable                       Land                                                                      Salaries Payable

Accumulated Depr - Equip            Merchandise Inventory                                 Sales

Advertising Expense                       Notes Payable                                                   Sales Discounts

Capital                                                Office Supplies                                                 Sales Returns & Allowances

Cash                                                      Utilities Expense                                              Cost of Merchandise Sold

Unearned Revenue                         Depreciation Expense - Equip.                    Salaries Expense

Drawing, Owner                               Freight Out