EX 2-3 Chart of accounts

Alpha 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
Accounts Receivable
Cash
Equipment
Fees Earned
Jan Pulver, Capital
Jan Pulver, Drawing
Miscellaneous Expense
Prepaid Insurance
Rent Expense
Supplies
Supplies Expense
Unearned Rent
Wages Expense

List the accounts in the order in which they appear in the ledger of Alpha 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, etc.), and the second digit is to identify the specific account within each major classification (11 for Cash, etc.).

Answer
1. Assets
11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Insurance
15 Equipment

2. Liabilities
21 Accounts Payable
22 Unearned Rent

3. Owner's Equity
31 Jan Pulver, Capital
32 Jan Pulver, Drawing

4. Revenue
41 Fees Earned

5. Expenses
51 Wages Expense
52 Rent Expense
53 Supplies Expense
59 Miscellaneous Expense