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Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows: Merchandise Inventory Accounts Payable Miscellaneous Administrative Expense Accounts Receivable Accumulated Depreciation-Office Equipment Miscellaneous Selling Expense Notes Payable Accumulated Depreciation-Store Equipment Office Equipment Advertising Expense Office Salaries Expense Cash Cost of Merchandise Sold Office Supplies Customer Refunds Payable Office Supplies Expense Delivery Expense Prepaid Insurance Rent Expense Depreciation Expense-Office Equipment Salaries Payable Depreciation Expense-Store Equipment Estimated Returns Inventory Sales Sales Salaries Expense Insurance Expense Interest Expense Store Equipment Store Supplies Kailey Garner, Capital Store Supplies Expense Kailey Garner, Drawing Land Construct a chart of accounts, assigning account numbers and arranging the accounts in balance sheet and income statement order, as illustrated in Exhibit 2. 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.).

Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows: Merchandise Inventory Accounts Payable Miscellaneous Administrative Expense Accounts Receivable Accumulated Depreciation-Office Equipment Miscellaneous Selling Expense Notes Payable Accumulated Depreciation-Store Equipment Office Equipment Advertising Expense Office Salaries Expense Cash Cost of Merchandise Sold Office Supplies Customer Refunds Payable Office Supplies Expense Delivery Expense Prepaid Insurance Rent Expense Depreciation Expense-Office Equipment Salaries Payable Depreciation Expense-Store Equipment Estimated Returns Inventory Sales Sales Salaries Expense Insurance Expense Interest Expense Store Equipment Store Supplies Kailey Garner, Capital Store Supplies Expense Kailey Garner, Drawing Land Construct a chart of accounts, assigning account numbers and arranging the accounts in balance sheet and income statement order, as illustrated in Exhibit 2. 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.).

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 3E: Chart of accounts Monet Paints Co. is a newly organized retail business with a list of accounts...
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Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows: Merchandise Inventory Accounts Payable Miscellaneous Administrative Expense Accounts Receivable Accumulated Depreciation-Office Equipment Miscellaneous Selling Expense Notes Payable Accumulated Depreciation-Store Equipment Office Equipment Advertising Expense Office Salaries Expense Cash Cost of Merchandise Sold Office Supplies Customer Refunds Payable Office Supplies Expense Delivery Expense Prepaid Insurance Rent Expense Depreciation Expense-Office Equipment Salaries Payable Depreciation Expense-Store Equipment Estimated Returns Inventory Sales Sales Salaries Expense Insurance Expense Interest Expense Store Equipment Store Supplies Kailey Garner, Capital Store Supplies Expense Kailey Garner, Drawing Land Construct a chart of accounts, assigning account numbers and arranging the accounts in balance sheet and income statement order, as illustrated in Exhibit 2. Each account number is three digits: the first digit is to indicate the major classification (1 for assets,
Transcribed Image Text:Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows: Merchandise Inventory Accounts Payable Miscellaneous Administrative Expense Accounts Receivable Accumulated Depreciation-Office Equipment Miscellaneous Selling Expense Notes Payable Accumulated Depreciation-Store Equipment Office Equipment Advertising Expense Office Salaries Expense Cash Cost of Merchandise Sold Office Supplies Customer Refunds Payable Office Supplies Expense Delivery Expense Prepaid Insurance Rent Expense Depreciation Expense-Office Equipment Salaries Payable Depreciation Expense-Store Equipment Estimated Returns Inventory Sales Sales Salaries Expense Insurance Expense Interest Expense Store Equipment Store Supplies Kailey Garner, Capital Store Supplies Expense Kailey Garner, Drawing Land Construct a chart of accounts, assigning account numbers and arranging the accounts in balance sheet and income statement order, as illustrated in Exhibit 2. 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.).
Transcribed Image Text: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.).
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