Chart Of Accounts | Answers
Identify the Account Category
Which category do these accounts belong to?
Cash
Loan Payable
Utilities Expense
Sales Revenue
Capital
Loan Payable
Utilities Expense
Sales Revenue
Capital
Asset
Liability
Expenses
Revenue
Equity
Liability
Expenses
Revenue
Equity
Suggest an Account Number
Rent Expense
Equipment
Accounts Payable
Service Revenue
Owner’s Drawings
Equipment
Accounts Payable
Service Revenue
Owner’s Drawings
5500
1100
2200
4400
3300
1100
2200
4400
3300
Create a Mini Chart of Accounts
Assets
101 Cash
120 Baking Equipment
150 Inventory | Flour, sugar, ingredients
Liabilities
201 Accounts Payable
250 Bank Loan Payable
Equity
301 Owner’s Capital
Revenue
401 Bakery Sales Revenue
Expenses
510 Rent Expense
520 Utilities Expense
Numbering Practice
Assign numbers to these accounts using the standard ranges
Office Supplies
Inventory
Salaries Expense
Bank Loan Payable
Service Revenue
Inventory
Salaries Expense
Bank Loan Payable
Service Revenue
1100
1100
5500
2200
4400
1100
5500
2200
4400
Mini Case Study
A new graphic design studio is creating its Chart of Accounts.
Classify each item into its correct category.
Cash
Computer Equipment
Design Revenue
Rent Expense
Owner’s Capital
Utilities Expense
Accounts Receivable
Loan Payable
Computer Equipment
Design Revenue
Rent Expense
Owner’s Capital
Utilities Expense
Accounts Receivable
Loan Payable
Asset
Asset
Revenue
Expense
Equity
Expense
Asset
Liability
Asset
Revenue
Expense
Equity
Expense
Asset
Liability
Assign each item a suitable account number.
Cash
Computer Equipment
Design Revenue
Rent Expense
Owner’s Capital
Utilities Expense
Accounts Receivable
Loan Payable
Computer Equipment
Design Revenue
Rent Expense
Owner’s Capital
Utilities Expense
Accounts Receivable
Loan Payable
1100
1200
4400
5500
3300
5600
1300
2200
1200
4400
5500
3300
5600
1300
2200
Which accounts will appear on the income statement?
Income Statement
➛ Design Revenue
➛ Rent Expense
➛ Utilities Expense
Revenue & expenses only
Which accounts will appear on the balance sheet?
Balance Sheet
➛ Cash
➛ Computer Equipment
➛ Accounts Receivable
➛ Loan Payable
➛ Owner’s Capital
Assets, liabilities, and equity
Quick Quiz
What is a Chart of Accounts?
➛ A list of all accounts used by a business.
What number range is usually used for assets?
➛ 1100 - 1199
Capital is an asset.
➛ False - Capital is equity.
Give one example of a revenue account.
➛ Sales Revenue
➛ Service Revenue
➛ Design Revenue
Which category does “Inventory” belong to?
➛ Asset
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