EX 2-2 Chart of accounts

Oak Interiors is owned and operated by Fred Biggs, an interior decorator. In the ledger of Oak 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
Fred Biggs, Drawing
Accounts Receivable
Land
Cash
Miscellaneous Expense
Fees Earned
Supplies Expense
Fred Biggs, Capital
Wages Expense


Answer:

Account
Number
Accounts Payable21
Accounts Receivable 12
Cash11
Fees Earned41
Fred Biggs, Capital31
Fred Biggs, Drawing 32
Land13
Miscellaneous Expense 53
Supplies Expense52
Wages Expense51
Note:  Expense accounts are normally listed in order of magnitude from largest to 
smallest with Miscellaneous Expense always listed last. Since Wages Expense is 
normally larger than Supplies Expense, Wages Expense is listed as account  
number 51 and Supplies Expense as account number 52.