Internal Controls
Sebastian's Coffee Shop Makes and Sells Specialty Coffee

Essay

Internal controls
Sebastian's Coffee Shop makes and sells specialty coffee drinks, sandwiches and pastries. Sebastian has hired you to construct the shop's first chart of accounts; he wants to use a block coding system. Use the principles of block coding to assign account numbers to the accounts listed below. $$\begin{array} { | l | l | l | l | } \hline { \begin{array} { c } \text { Account } \\\text { title }\end{array} } & \begin{array} { c } \text { Account } \\\text { number }\end{array} & \text { Account title } & { \begin{array} { c } \text { Account } \\\text { number }\end{array} } \\\hline \text { Supplies } & & \text { Sales } & \\\hline \text { Equipment } & & \begin{array} { l } \text { Sales } \\\text { discounts }\end{array} & \\\hline \begin{array} { l } \text { Wages } \\\text { payable }\end{array} && \begin{array} { l } \text { Wages } \\\text { expense }\end{array} & \\\hline \begin{array} { l } \text { Long-term notes } \\\text { payable }\end{array} & & \begin{array} { l } \text { Interest } \\\text { expense }\end{array} & \\\hline \begin{array} { l } \text { Retained } \\\text { earnings }\end{array} && \begin{array} { l } \text { Cost of goods } \\\text { sold }\end{array} & \\\hline\end{array}$$