Selected Accounts from the Ledger of Thomas Company Appear Below

question 142

Essay

Selected accounts from the ledger of Thomas Company appear below. For each account, indicate the following:

a. In the first column at right, indicate the type of each account using the following abbreviations:
Asset - A	Revenue - R	None of the above - N
Liability - L	Expense - E

b. In the second column, indicate the normal balance of the account by inserting a Dr. or Cr.
Account	Type of Account	Normal Balance
1. Office Supplies	________	________
2. Accounts Receivable	________	________
3. Fees Earned	________	________
4. Thomas, Withdrawals	________	________
5. Accounts Payable	________	________
6. Salaries Expense	________	________
7. Thomas, Capital	________	________
8. Accounts Receivable	________	________
9. Equipment	________	________
10. Telephone Expense	________	________

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Definitions:

Pass-through Status

A business structure that allows profits to be passed directly to owners or shareholders without being subject to corporate taxes.

U.S. Tax Code

The U.S. Tax Code is the formal body of laws and rules that dictate how federal income taxes are collected from individuals and businesses by the U.S. government.

Diversified

The strategy of spreading investments across various financial assets to reduce risk and increase the potential for return.

Open-end Investment Companies

Mutual funds that continuously issue new shares or redeem existing shares at the net asset value.