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, as illustrated below. 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). 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 Depreciation—Office Equipment Accumulated Depreciation—Store Equipment Advertising Expense Cash Cost of Merchandise Sold Customer Refunds Payable Delivery Expense Depreciation Expense—Office Equipment Depreciation Expense—Store Equipment Estimated Returns Inventory Insurance Expense Interest Expense Kailey Garner, Capital Kailey 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 Store Supplies Store Supplies Expense Check My Work

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 16E: Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical...

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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, as illustrated below. 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).

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 Depreciation—Office Equipment
Accumulated Depreciation—Store Equipment
Advertising Expense
Cash
Cost of Merchandise Sold
Customer Refunds Payable
Delivery Expense
Depreciation Expense—Office Equipment
Depreciation Expense—Store Equipment
Estimated Returns Inventory
Insurance Expense
Interest Expense
Kailey Garner, Capital
Kailey 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
Store Supplies
Store Supplies Expense

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