Using the List of Accounts Below, Construct a Chart of Accounts

question 215

Essay

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.

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Definitions:

Ionic Bond

A chemical bond formed between two ions with opposite charges through the transfer of electrons.

Covalent Bond

A chemical bond formed by the sharing of one or more pairs of electrons between atoms to achieve stability.

Biological Molecules

Biological molecules are the essential substances that are the building blocks of living organisms, including proteins, nucleic acids, carbohydrates, and lipids.

Stabilizes

Refers to making something more steady or firmly fixed in place, or making a chemical compound resistant to change.