Dolly and Madison Ford is a partnership that sells automobiles. The company has two dealershipsBaytown Ford and Liberty Ford. Each dealership sells two makes of automobilesMustang and Taurus.

Additional information:

Neither dealership maintains a parts inventory.

Each dealership owns its equipment, furniture and fixtures, but rents its location.

Each dealership has a manager, a bookkeeper, and four salespeople, all of whom are paid a salary.

Each dealership collects state sales tax on automobile sales.

The accounting system uses accrual-basis accounting.

The accounting system uses a perpetual inventory system for automobiles.

Required:

Prepare an appropriate chart of accounts for the companys computerized accounting system using either a spreadsheet or word processing program. The chart of accounts should enable the accounting system to report the following:

a. For both dealerships combined:

1. Report operating profit.

2. Report automobile inventory accounts for each make of automobile and for both makes combined.

b. For each dealership:

1. Report operating profit.

2. Report sales and cost of sales for each make of automobile.

3. Report inventory accounts for each make of automobile.

Use the appropriate block codes given in the chapter in the Coding Schemes section. Include not only the accounts needed to accomplish the above reporting requirements but all other accounts that are needed for recording typical day-to-day transactions involved in operating an automobile dealership (except for parts inventory, as noted above).