Construct a chart of accounts, assigning account numbers and arranging the accounts in balance sheet…

Gemini Co. is a newly organized business with a list of accounts arranged in alphabetical order below.

Accounts Payable

Miscellaneous Administrative Expense

Accounts Receivable

Miscellaneous Selling Expense

Accumulated Depreciation—Office Equipment

Notes Payable

Accumulated Depreciation—Store Equipment

Office Equipment

Advertising Expense

Office Salaries Expense

Cash

Office Supplies

Cost of Merchandise Sold

Office Supplies Expense

Delivery Expense

Prepaid Insurance

Depreciation Expense—Office Equipment

Rent Expense

Depreciation Expense—Store Equipment

Salaries Payable

Income Summary

Sales

Insurance Expense

Sales Discounts

Interest Expense

Sales Returns and Allowances

Jung Qiang, Capital

Sales Salaries Expense

Jung Qiang, Drawing

Store Equipment

Land

Store Supplies

Merchandise Inventory

Store Supplies Expense

Construct a chart of accounts, assigning account numbers and arranging the accounts in balance sheet and income statement order, as illustrated in Exhibit 6. Each account number is three digits: the first digit is to indicate the major classification (“1” for assets, and so on); the second digit is to indicate the sub classification (“11” for current assets, and so on); and the third digit is to identify the specific account (“110” for Cash, and so on).