Selected Accounts from the Ledger of Thomas Company Appear Below

question 68

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:
$$\text { Asset - A } \quad \text { Revenue } - \mathrm { R } \quad \text { None of the above } - \mathrm { N } \text { Liability - } \mathrm { L } \quad \text { Expense } - \mathrm { E }$$
b.In the second column,indicate the normal balance of the account by inserting a Dr.or Cr.
$$\begin{array} { | l | c | c | } \hline \text { Account } & \begin{array} { c } \text { Type of } \\\text { Account }\end{array} & \text { Normal Balance } \\\hline \text { 1. Office Supplies } & - & \\\hline \text { 2. Accounts Receivable } & - & \\\hline \text { 3. Fees Earned } & - & \\\hline \text { 4. Thomas, Withdrawals } & - & \\\hline \text { 5. Accounts Payable } & - & \\\hline \text { 6. Salaries Expense } & - & \\\hline \text { 7. Thomas, Capital } & - & \\\hline \text { 8. Accounts Receivable } & - & \\\hline \text { 9. Equipment } & - & \\\hline \text { 10. Telephone Expense } & - & \\\hline\end{array}$$

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Definitions:

Actual Manufacturing Overhead

Refers to the actual incurred costs that are indirectly associated with the manufacturing of a product, including costs like utilities and maintenance for manufacturing facilities.

Unadjusted Cost

The original cost of an item or activity before any adjustments, such as depreciation or amortization, have been applied.

Goods Sold

Goods sold refers to the products that have been sold by a business, often measured within a specific accounting period.

Direct Materials

Direct materials refer to raw materials that can be directly attributed to the production of a specific product, considered a variable cost in manufacturing.