Question

Deters Duplicating

Chart of Accounts
Balance Sheet Accounts Income Statement Accounts
Assets Revenue
110 Cash 410 Sales
120 Accounts Receivable-J. Chin Expenses
130 Accounts Receivable-A. Karn 510 Advertising Expense
140 Supplies 520 Charitable Expense
150 Prepaid Insurance 530 Insurance Expense
Liabilities 540 Postage Expense
210 Accounts Payable-River Company 550 Rent Expense
220 Accounts Payable-Sharma Supply
Owner’s Equity
310 Kajal Chauhan, Capital
320 Kajal Chauhan, Drawing

Two new accounts, Delivery Expense and Telephone Expense, are to be added to the chart of accounts prepared in step 2. Account number____should be assigned to Delivery Expense. Account number____should be assigned to Telephone Expense.

The following ledger form has some items identified with numbers. Using the numbers, answer the questions about opening the Prepaid Insurance and Postage Expense accounts.

In what location would the account numbers be entered?
In what location would the account titles be entered?
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Answer 1

The account number 600 should be assigned to Delivery Expense and the account number 610 should be assigned to Telephone Expense. The account numbers would be entered under the column for 'Account Number' and the account titles would be entered under the column for 'Account Title'.

Delivery Expense and Telephone Expense need to be added to the chart of accounts. The account number for Delivery Expense should be assigned as 600 and the account number for Telephone Expense should be assigned as 610.

The account numbers would be entered in the same column as the other account numbers, under the column for 'Account Number'. The account titles would be entered in the same row as the account numbers, directly across from each account number, under the column for 'Account Title'.