EX 6-3 Chart of accounts

Monet Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order, as follows:

Accounts Payable
Accounts Receivable
Accumulated Depreciation—Office Equipment
Accumulated Depreciation—Store Equipment
Advertising Expense
Cash
Cost of Merchandise Sold
Customer Refunds Payable
Delivery Expense
Depreciation Expense—Office Equipment
Depreciation Expense—Store Equipment
Estimated Returns Inventory
Insurance Expense
Interest Expense
Kailey Garner, Capital
Kailey Garner, Drawing
Land
Merchandise Inventory
Miscellaneous Administrative Expense
Miscellaneous Selling Expense
Notes Payable
Office Equipment
Office Salaries Expense
Office Supplies
Office Supplies Expense
Prepaid Insurance
Rent Expense
Salaries Payable
Sales
Sales Salaries Expense
Store Equipment
Store Supplies
Store Supplies Expense

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.).



Answer:
Balance Sheet Accounts Income Statement Accounts
100 Assets400 Revenues
110 Cash410 Sales
112 Accounts Receivable 500 Expenses
114 Merchandise Inventory 510 Cost of Merchandise Sold
115 Estimated Returns Inventory 520 Sales Salaries Expense
116 Store Supplies 521 Advertising Expense
117 Office Supplies 522 Depreciation Expense—
118 Prepaid Insurance Store Equipment
120 Land523 Store Supplies Expense
123 Store Equipment 524 Delivery Expense
124 Accumulated Depreciation— 529 Miscellaneous Selling 
Store Equipment Expense
125 Office Equipment 530 Office Salaries Expense
126 Accumulated Depreciation— 531 Rent Expense
Office Equipment 532 Depreciation Expense—
200 LiabilitiesOffice Equipment
210 Accounts Payable 533 Insurance Expense
211 Customer Refunds Payable 534 Office Supplies Expense
212 Salaries Payable 539 Miscellaneous 
213 Notes Payable Administrative Expense
300 Owner’s Equity 600 Other Expense
310 Kailey Garner, Capital 610 Interest Expense

311 Kailey Garner, Drawing