Textbook Problem

Chart of accounts

Innerscape Interiors is owned and operated by Jackie Vargo, an interior decorator. In the ledger of Innerscape Interiors, the first digit of the account number indicates its major account classification (1—assets, 2—liabilities, 3—owner’s equity, 4—revenues, 5—expenses). The second digit of the account number indicates the specific account within each of the preceding major account classifications.

Match each account number with its most likely account in the list that follows. The account numbers are 11, 12, 13, 21, 31, 32, 41, 51, 52, and 53.

Accounts Payable

Accounts Receivable

Cash

Fees Earned

Jackie Vargo, Capital

Jackie Vargo, Drawing

Land

Miscellaneous Expense

Supplies Expense

Wages Expense