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

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).

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Accounts Payable Accounts Receivable Miscellaneous Administrative Expense Miscellaneous Seling Expense Notes Payable Office Equipment Office Salaries Expense Office Supplies Office Supplies Expense Prepaid Insurance Rent Expense Salaries Payable Sales Sales Discounts Sales Returns and Allowances Sales Salaries Expense Accumulated Depreciation-Office Equipment Accumulated Depreciation-Store Equipment Advertising Expense Cash Cost of Merchandise Sold Delivery Expense Depreciation Expense-Office Equipment Depreciation Expense-Store Equipment Income Summary Insurance Expense Interest Expense Jim Frazee, Capital Jim Frazee, Drawing Store Equipment Land St Supplies Merchandise Inventory Store Supplies Expense