EX 2-3 Chart of accounts

Outdoor Leadership  School is a newly organized business that teaches people how to inspire and influence others. The list of accounts to be opened in the general ledger is as follows:

Accounts Payable 

Miscellaneous Expense

Accounts Receivable 

Prepaid Insurance

Cash 

Rent Expense

Equipment 

Supplies

Fees Earned 

Supplies Expense

Lorri Ross, Capital 

Unearned Rent

Lorri Ross, Drawing 

Wages Expense

List the accounts in the order in which they should appear in the ledger of Outdoor Leadership  School and assign account numbers. Each account number is to have two digits: the first digit is to indicate the major classification (1 for assets, for example), and the second digit is to identify the specific account within each major classification (11 for Cash, for example).

Answer:

Balance Sheet Accounts

Income Statement Accounts

1. Assets 

2. Liabilities

3. Owner’s Equity

4. Revenue

5. Expenses

11 Cash41 Fees Earned

12 Accounts Receivable

13 Supplies

14 Prepaid Insurance 51 Wages Expense

15 Equipment52 Rent Expense

53 Supplies Expense

59 Miscellaneous Expense

21 Accounts Payable

22 Unearned Rent

31 Lorri Ross, Capital

32 Lorri Ross, Drawing