EX 6-9 Chart of accounts
Do-Right Paints Co. is a newly organized business with a list of accounts arranged in alphabetical order below.
| Accounts Payable | Miscellaneous Administrative Expense |
| Accounts Receivable | Miscellaneous Selling Expense |
| Accumulated Depreciation—Office Equipment | Notes Payable |
| Accumulated Depreciation—Store Equipment | Office Equipment |
| Advertising Expense | Office Salaries Expense |
| Cash | Office Supplies |
| Cost of Merchandise Sold | Office Supplies Expense |
| Delivery Expense | Prepaid Insurance |
| Depreciation Expense—Office Equipment | Rent Expense |
| Depreciation Expense—Store Equipment | Salaries Payable |
| Income Summary | Sales |
| Insurance Expense | Sales Discounts |
| Interest Expense | Sales Returns and Allowances |
| Jamie Ricardi, Capital | Sales Salaries Expense |
| Jamie Ricardi, Drawing | Store Equipment |
| Land | Store Supplies |
| Merchandise Inventory | 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 5. Each account number is three digits: the first digit is to indicate the major classification (“1” for assets, and so on); the second digit is to indicate the subclassification (“11” for current assets, and so on); and the third digit is to identify the specific account (“110” for Cash, “112” for Accounts Receivable, “114” for merchandise Inventory, “115” for Store Supplies, and so on).
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