EX 2-2 Chart of accounts

Innerscape Interiors is owned and operated by Jackie Vargo, an interior decorator. In the ledger of Innerscape Interiors, the first digit of the account number indicates its major account classification (1—assets, 2—liabilities, 3—stockholders’ equity, 4—revenues, 5—expenses). The second digit of the account number indicates the specific account within each of the preceding major account classifications.

Match each account number with its most likely account in the list that follows. The account numbers are 11, 12, 13, 21, 31, 32, 33, 41, 51, 52, and 53.

Accounts Payable 

Land

Accounts Receivable 

Miscellaneous Expense

Cash 

Retained Earnings

Common Stock 

Supplies Expense

Dividends 

Wages Expense

Fees Earned

Answer:

Account 

Number 

Accounts Payable 21 

Accounts Receivable 12 

Cash 11 

Common Stock 31 

Dividends 33 

Fees Earned 41 

Land 13 

Miscellaneous Expense 53 

Retained Earnings 32 

Supplies Expense 52 

Wages Expense 51 

Note:  Expense accounts are normally listed in order of magnitude from largest to 

smallest with Miscellaneous Expense always listed last. Since Wages Expense is 

normally larger than Supplies Expense, Wages Expense is listed as account 

number 51 and Supplies Expense as account number 52.