Innerscape Interiors is owned and operated by Jackie Vargo, an interior decorato
ID: 2488198 • Letter: I
Question
Innerscape Interiors is owned and operated by Jackie Vargo, an interior decorator. In the ledger of Innerscape Interiors, the first digit of the account number indicates its major account classification (1—assets, 2—liabilities, 3—stockholders' equity, 4—revenues, 5—expenses). The second digit of the account number indicates the specific account within each of the preceding major account classifications. Match each account number with its most likely account in the list that follows. The account numbers are 11, 12, 13, 21, 31, 32, 33, 41, 51, 52, and 53.
Account Account Number Accounts Payable Accounts Receivable Cash Fees Earned Jackie Vargo, Capital Jackie Vargo, Drawing Land Miscellaneous Expense Supplies Expense Wages ExpenseExplanation / Answer
Classification of Accounts :
Account
Major account classification
First Digit of Account Number
Second Digit of Account Number
Account Number
Accounts Payable
2—liabilities
2
1
21
Accounts Receivable
1—assets
1
2
12
Cash
1—assets
1
1
11
Fees Earned
4—revenues
4
1
41
Jackie Vargo, Capital
3—stockholders' equity
3
1
31
Jackie Vargo, Drawing
3—stockholders' equity
3
2
32
Land
1—assets
1
3
13
Miscellaneous Expense
5—expenses
5
1
51
Supplies Expense
5—expenses
5
2
52
Wages Expense
5—expenses
5
3
53
Classification of Accounts :
Account
Major account classification
First Digit of Account Number
Second Digit of Account Number
Account Number
Accounts Payable
2—liabilities
2
1
21
Accounts Receivable
1—assets
1
2
12
Cash
1—assets
1
1
11
Fees Earned
4—revenues
4
1
41
Jackie Vargo, Capital
3—stockholders' equity
3
1
31
Jackie Vargo, Drawing
3—stockholders' equity
3
2
32
Land
1—assets
1
3
13
Miscellaneous Expense
5—expenses
5
1
51
Supplies Expense
5—expenses
5
2
52
Wages Expense
5—expenses
5
3
53