Asked by Melissa Figueroa on May 18, 2024
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Using the list of accounts below, construct a chart of accounts for a merchandising business that rents out a portion of its building, and assign account numbers and arranging the accounts in balance sheet and income statement order ("1" for assets, and so on). Each account number should have three digits. Contra accounts should be designated with a decimal of the account (100.1 for contra of account 100). Assets and liabilities should be in order of liquidity, expenses should be in alphabetical order. 
Chart of Accounts
A structured list of all the accounts used in the general ledger of an organization, categorized into assets, liabilities, equity, revenue, and expenses.
Merchandising Business
A type of business that purchases goods at wholesale prices and sells them at retail prices to earn a profit.
Account Numbers
A unique identifier assigned to each account in a company's chart of accounts, facilitating organization and tracking of financial transactions.
- Design a chart of accounts for a merchandising business, incorporates balance sheet and income statement order.
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Learning Objectives
- Design a chart of accounts for a merchandising business, incorporates balance sheet and income statement order.
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