LeadCo School is a newly organized business that teaches people how to inspire and influence others

LeadCo 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            Miscellaneous Expense
Accounts Receivable       Prepaid Insurance
Cash                                 Rent Expense
Equipment                       Supplies
Fees Earned                     Supplies Expense
Ivy Bishop, Capital         Unearned Rent
Ivy Bishop, Drawing       Wages Expense

List the accounts in the order in which they should appear in the ledger of LeadCo 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:

Balance Sheet Accounts  Income Statement Accounts  1.  Assets  4.  Revenue 11   Cash  41   Fees Earned 12   Accounts Receivable 13   Supplies 5.  Expenses 14   Prepaid Insurance  51   Wages Expense 15   Equipment  52   Rent Expense 53   Supplies Expense 2.  Liabilities 21   Accounts Payable 22   Unearned Rent 59   Miscellaneous Expense  3.  Owner’s Equity 31   Ivy Bishop, Capital 32   Ivy Bishop, Drawing