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Review the chart of accounts in Ch 2.  In Excel, create a four column chart of accounts for a fictitious company in your pathway.  The company should be a sole proprietor and a service business. In the upper left side of your worksheet list your name, your company name and your pathway.List at least 16 accounts. At least 6 account titles should be customized for your specific company or industry. Assign a three digit account number to your accounts following the example chart of accounts. Group the accounts, as in the example, as Assets, Liabilities, Owner’s Equity, Revenue and Expense. In the last two columns, state what the normal balance of the account is (debit or credit), and state how the account is increased (debit or credit). Your four columns should have the following titles: Account numberAccount titlenormal balanceincreases withThe row for cash could have the following information: 101            Cash                     Debit                 DebitExamples of businesses in pathways could be:

Question

Review the chart of accounts in Ch 2.  In Excel, create a four column chart of accounts for a fictitious company in your pathway.  The company should be a sole proprietor and a service business. In the upper left side of your worksheet list your name, your company name and your pathway.

  • List at least 16 accounts. 
  • At least 6 account titles should be customized for your specific company or industry. 
  • Assign a three digit account number to your accounts following the example chart of accounts. 
  • Group the accounts, as in the example, as Assets, Liabilities, Owner’s Equity, Revenue and Expense. 
  • In the last two columns, state what the normal balance of the account is (debit or credit), and state how the account is increased (debit or credit).

 

Your four columns should have the following titles: 

  • Account number
  • Account title
  • normal balance
  • increases with

The row for cash could have the following information:

 

101            Cash                     Debit                 Debit

Examples of businesses in pathways could be:

check_circleAnswer
Step 1

4 Column chart of account for a service company – Assets

A
В
D
PQR
PQR Consultancy
Providing Accounting Consultancy Services
1
Name:
2 Name of Business:
3 Business in Pathway
4
5
Chart of Account
6
7 Cash Account-
8 Business in Pathway
Current Asset
Capital Depostied, Cash Received from Customer
Debit
Debit
101 Cash
9
10
11 Accounts Receivable
12 Business in pathway
Current Asset
Credit sales customer balance
Debit
110 Accounts Receivable
Debit
13
14
15 Investment
16 Business in Pathway
Asset
Investment made by sole trader
Debit
Debit
17
150 Investment Account
st
LO
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A В D PQR PQR Consultancy Providing Accounting Consultancy Services 1 Name: 2 Name of Business: 3 Business in Pathway 4 5 Chart of Account 6 7 Cash Account- 8 Business in Pathway Current Asset Capital Depostied, Cash Received from Customer Debit Debit 101 Cash 9 10 11 Accounts Receivable 12 Business in pathway Current Asset Credit sales customer balance Debit 110 Accounts Receivable Debit 13 14 15 Investment 16 Business in Pathway Asset Investment made by sole trader Debit Debit 17 150 Investment Account st LO

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Step 2

4 Column chart of account for a service company – Liabilities

B
A
C
C
E
18
19 Accounts Payable
20 Business in Pathway
Current Liability
Payment to creditors
210 Accounts Payable
Credit
Credit
21
22
Current Liability
Amounts received in advance for services to be provided in future
23 Unearned Revenue
24 Business in pathway-
Credit
220 Unearned Revenue
Credit
25
26
27 Mortagage Loan
28 Business in Pathway
Liability Account
Long-term loan taken
Credit
Credit
29
230 Mortagage Loan
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B A C C E 18 19 Accounts Payable 20 Business in Pathway Current Liability Payment to creditors 210 Accounts Payable Credit Credit 21 22 Current Liability Amounts received in advance for services to be provided in future 23 Unearned Revenue 24 Business in pathway- Credit 220 Unearned Revenue Credit 25 26 27 Mortagage Loan 28 Business in Pathway Liability Account Long-term loan taken Credit Credit 29 230 Mortagage Loan

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Step 3

4 Column chart of account for a service ...

B
C
D
A
30
31 P's Capital
32 Business in Pathway-
Partner's Capital Account
Capital Contributed by partner
Credit
250 P's Capital
Credit
33
34
Partner's Capital Account
Capital Contributed by partner
Credit
35 Q's Capital-
36 Business in Pathway-
260 Q's Capital
Credit
37
38
Partner's Capital Account
Capital Contributed by partner
39 R's Capital
40 Business in Pathway
270 R's Capital
Credit
Credit
41
42
Contra Capital Account
43 P's Drawings Account-
44 Business in Pathway
Amount withdrawn by partners from their respective capital accounts
255 P's Drawing Account
Debit
Debit
45
AC
ш
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B C D A 30 31 P's Capital 32 Business in Pathway- Partner's Capital Account Capital Contributed by partner Credit 250 P's Capital Credit 33 34 Partner's Capital Account Capital Contributed by partner Credit 35 Q's Capital- 36 Business in Pathway- 260 Q's Capital Credit 37 38 Partner's Capital Account Capital Contributed by partner 39 R's Capital 40 Business in Pathway 270 R's Capital Credit Credit 41 42 Contra Capital Account 43 P's Drawings Account- 44 Business in Pathway Amount withdrawn by partners from their respective capital accounts 255 P's Drawing Account Debit Debit 45 AC ш

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