The following is list of accounts and cost centers for a group of physician offices that you manage. The accounts are in alphabetical order. How to create a numbering system for a chart of accounts using a 5-digit numbering system that incorporates the main categories of Assets, Liabilities, Equity, Expenses, and Revenues.There are sub-accounts under these main headings. How to determine if the accounts are considered Assets, Liabilities, Equity, Expenses, or Revenues and indicate that in the file. Also define each. The cost centers represent the various physician office sites and will be indicated by a modifier. For example, lets assume salaries as an expense. Numbering system states that all expenses have a 5 digit code starting with 30. Salaries would be indicated by 30100. Breakdown salaries by type such as clerical: 30101 or physicians assistant: 30102. Indicate the three cost centers through a two digit modifier. So, a physicians assistant salary at the Bedford Clinic would be 30102-01 and a physicians assistant salary at the Simon Clinic would be 30102-02. Provide an explanation of how set up your chart of accounts -includes definitions and explanation) The following is the list of accounts and cost centers from which to create numbering system. How to create chart of accounts in Excel.

Accounts

Accounts payable - general

Cash - investment account

Cash - money market

Coding expense

Collection agency income

Common stock

Computer supplies

Dues - professional

Medicare tax payable

Office supplies

Professional (PC) billing revenue

Retained earnings

Salaries - management

Salaries - staff

Cost Centers

Bedford Clinic

Simon Clinic

Morgan Physician Group

Example of ways to set up your chart of accounts. 60000 Assets 60100 Bonds Assets 60100 Bonds 60200 Stocks Assets 60200 Stocks 70100 Reserves Liabilities 70000 Liabilities 70100 Reserves