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).