Drew Castle Is an Insurance Appraiser

question 35

Essay

Drew Castle is an insurance appraiser. Shown below are (a) several accounts in his ledger with each account preceded by an identification number, and (b) several transactions completed by Castle. Indicate the accounts debited and credited when recording each transaction by placing the proper account identification numbers to the right of each transaction.
1. ^{Accounts Payable 8. Office Supplies Expense}
2. ^{Accounts Receivable 9. Prepaid Insurance}
3. ^{Appraisal Fees Earned 10. Salaries Expense}
4. ^{Cash 11. Telephone Expense}
5. ^{Insurance Expense 12. Unearned Appraisal Fees}
6. ^{Office Equipment 13. Drew Castle, Capital}
7. ^{Office Supplies 14. Drew Castle, Withdrawals}

$\begin{array}{l|l|l}&\text { Debit } &\text { Credit }\\\hline \text { Example: } & & \\\hline \text { Completed an appraisal for a client who } & 2 & 3 \\\text { promised to pay at a later date. }\\\hline \\\end{array}$

$\begin{array}{l|l|l}\hline \text { A. } &\begin{array}{l}\text { Received cash in advance for appraising a } \\\text { hail damage claim................................... }\end{array} & & \\\hline B . & \text { Purchased office supplies on credit......... } \\\hline \text { C. } & \begin{array}{l}\text { Drew Castle used cash from the business to } \\\text { pay his home telephone bill. There were no } \\\text { business calls on the bill...................... }\end{array} \\\hline & \begin{array}{l}\text { Received the telephone bill of the business } \\\text { and immediately paid it......................... }\end{array} \\\hline\end{array}$
$\begin{array}{r|l|l}\hline \text { E. } & \text { Paid the salary of the office assistant.... } & \\\hline \text { F. } & \text { Paid for the supplies purchased } \\&\text { in transaction B.............................. }\\\hline \text {G. }& \text {Completed an appraisal for a client and }\\\hline& \text {immediately collected cash for the work}\\ \hline&\text { done...}\\\hline\end{array}$

---

Definitions:

Shares Issued

Refers to the total number of shares that a company has allocated to shareholders as part of its capital structure, including those owned by the public and the company itself.

Par Common Stock

The nominal or face value of a share of common stock, as stated in the corporate charter, which has minimal effect on its market value.

Market Value

The existing rate at which a service or asset is available for purchase or sale on the marketplace.

Paid-In Capital

Funds raised by a company from investors through the issuance of securities such as stocks, representing the capital contributed by shareholders in excess of the par value of the shares.