Internal Controls
Sebastian's Coffee Shop Makes and Sells Specialty Coffee

question 2

Essay

Internal controls
Sebastian's Coffee Shop makes and sells specialty coffee drinks, sandwiches and pastries. Sebastian has hired you to construct the shop's first chart of accounts; he wants to use a block coding system. Use the principles of block coding to assign account numbers to the accounts listed below. $$\begin{array} { | l | l | l | l | } \hline { \begin{array} { c } \text { Account } \\\text { title }\end{array} } & \begin{array} { c } \text { Account } \\\text { number }\end{array} & \text { Account title } & { \begin{array} { c } \text { Account } \\\text { number }\end{array} } \\\hline \text { Supplies } & & \text { Sales } & \\\hline \text { Equipment } & & \begin{array} { l } \text { Sales } \\\text { discounts }\end{array} & \\\hline \begin{array} { l } \text { Wages } \\\text { payable }\end{array} && \begin{array} { l } \text { Wages } \\\text { expense }\end{array} & \\\hline \begin{array} { l } \text { Long-term notes } \\\text { payable }\end{array} & & \begin{array} { l } \text { Interest } \\\text { expense }\end{array} & \\\hline \begin{array} { l } \text { Retained } \\\text { earnings }\end{array} && \begin{array} { l } \text { Cost of goods } \\\text { sold }\end{array} & \\\hline\end{array}$$

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Flynn Effect

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