On January 1, 2010, Cary Parsons Established a Catering Service

question 56

Essay

On January 1, 2010, Cary Parsons established a catering service. Listed below are accounts she would like to open in the general ledger. List the accounts in the order in which they should appear in the ledger and propose a two-digit account numbering scheme that is consistent with the rules of a proper chart of accounts.

$\begin{array}{ll}\text { 1. } & \text { Cash } \\ \text { 2. } & \text { Supplies } \\ \text { 3. } & \text { Equipment } \\ \text { 4. } & \text { Accounts Payable } \\ \text { 5. } & \text { Capital Stock } \\ \text { 6. } & \text { Wages Expense } \\ \text { 7. } & \text { Rent Expense } \\ \text { 8. } & \text { Truck } \\ \text { 9. } & \text { Utilities Expense } \\ \text { 10. } & \text { Dividends } \\ \text { 11. } & \text { Truck Expense } \\ \text { 12. } & \text { Prepaid Insurance } \\ \text { 13. } & \text { Fees Earned } \\ \text { 14. } & \text { Misceellaneous Expense } \\ \text { 15. } & \text { Insurance Expense } \\ \text { 16. } & \text { Notes Payable } \\ \text { 17. } & \text { RetainedEarnings } \\ 18 . & \text { Accounts Receivable }\end{array}$

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Definitions:

Classical Macroeconomic Theory

A school of thought in economics that emphasizes the role of free markets in ensuring economic efficiency and suggests that government intervention in those markets should be minimal.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.

Money Supply

Refers to the total amount of money—cash, coins, and balances in bank accounts—available in an economy at a specific time.

Classical Macroeconomic Theory

An economic theory that posits that markets function efficiently and that full employment is achieved when economies operate at a state of equilibrium without government intervention.