Chart of Accounts Coding
Bumble Beasley Attempted to Design a Hierarchical

Essay

Chart of accounts coding
Bumble Beasley attempted to design a hierarchical chart of accounts in the following format: x.y.z. "X" stands for the type of account (1 = asset, 2= liability, etc.), while "Y" indicates whether the account is current (1) or non-current (2). If the current/non-current designation doesn't apply, "Y" is the number "zero." "Z" identifies the specific account. He developed the following account numbers:
Identify the accounts that are correctly coded. $$\begin{array} { | l | l | } \hline 2.1 .1 & \text { Accounts payable } \\\hline 3.1 .1 & \text { Capital stock } \\\hline 1.1 .1 & \text { Cash } \\\hline 3.0 .1 & \text { Cost of goods sold } \\\hline 4.0 .2 & \text { Depreciation expense } \\\hline 1.2 .2 & \text { Equipment } \\\hline 1.1 .3 & \text { Interest payable } \\\hline 2.1 .2 & \text { Inventory } \\\hline 3.2 .1 & \text { Land } \\\hline 2.2 .1 & \text { Long-term notes payable } \\\hline 3.0 .1 & \text { Retained earnings } \\\hline 4.1 .1 & \text { Sales } \\\hline\end{array}$$