Frazee paints co is a newly organized business with a list

Question

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 soon).