Jim Jones is a sole proprietor that owns and manages a music store that sells music CDs and DVD music videos. 

Conduct research into firms chart of account coding. Use the following information to design and complete a chart of accounts: 

1.Customers cannot use commercial credit cards, but Tom has in-house credit 

2.Cash in the bank includes a checking account, savings account, change fund and petty cash fund. 

3.Tom pays for rent and insurance in advance. 

4.When Tom started the business he purchased land, a building used for the store, furniture and fixtures, and computer equipment. There have been no additional purchases. 

5.The are no short-term or long-term investments Tom issued a 90 day note to a customer that could not pay the amount owed that was recorded in accounts receivable. 

6.There are no notes payable. 

7.Toms earns interest on both the checking account and the savings account. 

8.Tom has two employees that are paid hourly wages The employees do not receive any benefits. 

9.Tom uses the perpetual inventory system T

10. Tom uses the accrual basis of accounting to record transactions. 

Answer rating: 100% (QA)

Chart of Accounts Code Account Name Capital Tom Jones Drawings Tom Jones 1 2 3 Sales ... View the full answer