Question

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

Answer 1

Answer:

Monet Paints Co.

                                                  Financial             Major               Possible

                                                  Statement       Classification   Account No.

Accounts Payable                   Balance Sheet        Liabilities                211

Accounts Receivable              Balance Sheet        Assets                    112

Accumulated Depreciation

 —Office Equipment               Balance Sheet       Assets (contra)      123

Accumulated Depreciation      

 —Store Equipment                Balance Sheet       Assets (contra)      

Advertising Expense               Income statement Expenses             331

Cash                                        Balance Sheet        Assets                  110

Common Stock                       Balance Sheet        Equity                   401

Cost of Merchandise Sold     Income statement   Expenses            330

Delivery Expense                   Income statement   Expenses            332

Depreciation Expense           Income statement   Expenses            333

 —Office Equipment

Depreciation Expense           Income statement   Expenses            334

 —Store Equipment Dividends

Income Summary                   Income statement    

Insurance Expense                Income statement    Expenses         335

Interest Expense                    Income statement    Expenses         336

Land                                        Balance Sheet          Assets               121

Merchandise Inventory          Balance Sheet          Assets               114

Miscellaneous Admin Expense Income statement Expenses       337

Miscellaneous Selling Expense Income statement Expenses      338

Notes Payable                        Balance Sheet           Liabilities        213

Office Equipment                   Balance Sheet           Assets            122

Office Salaries Expense         Income statement    Expenses       339

Office Supplies                      Balance Sheet            Assets            113

Office Supplies Expense       Income statement     Expenses      340

Prepaid Insurance                 Balance Sheet            Assets            115

Rent Expense                        Income statement     Expenses       341

Retained Earnings                 Balance Sheet           Equity            403

Salaries Payable                    Balance Sheet           Liabilities       212

Sales                                      Income Statement     Revenue       501

Sales Salaries Expense        Income Statement     Expenses      342

Store Equipment                   Balance Sheet           Assets           123

Store Supplies                       Balance Sheet           Assets           116

Store Supplies Expense       Income Statement     Expenses     343

Explanation:

Chart of accounts lists of all accounts of Monet Paints Company.  The list provides a bird's eye view of every area of the business that generates either expenditure or revenue.  The account types which are usually maintained by most companies include Revenue, Expenses, Assets, Liabilities, and Equity.  Revenue and expenses are summarized on the income statement, while assets, liabilities, and equity are listed on the balance sheet.