Adjusting Entries
Selected Ledger Accounts Used by American Advertising, Inc

question 93

Essay

Adjusting entries
Selected ledger accounts used by American Advertising, Inc., are listed along with identifying numbers. Following this list of account numbers and titles is a series of transactions. For each transaction, you are to indicate the proper accounts to be debited and credited.
$$\begin{array} { | l | l | l | l | l | l | } \hline 1 & \text { Cash } & 22 & \text { Accounts Payable } & 41 & \text { Fees Earned } \\\hline 2 . & \text { Accounts Receivable } & 23 & \text { Income Taxes Payable } & 51 & \text { Salaries Expense } \\\hline 3 & \text { Office Supplies } & 24 & \text { Unearned Fees } & 52 & \text { Office Supplies Expense } \\\hline 4 & \text { Unexpired Insurance } & 25 & \text { Dividends Payable } & 53 & \text { Rent Expense } \\\hline 5 & \text { Office Equipment } & 31 & \text { Capital Stock } & 54 & \text { Insurance Expense } \\\hline 6 & \text { Accumulated Depr. } & 32 & \text { Retained Earnings } & 55 & \text { Depreciation Expense: } \\\hline & \text { Expense Office Equip } & 33 & \text { Dividends } & & \text { Office Equip. } \\\hline & & & & 56 & \text { Income Taxes Expense } \\\hline & & & & & \\\hline\end{array}$$

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Definitions:

Job Order Cost

The accumulation and assignment of costs to a specific job, including labor, materials, and overhead.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving risk, uncertainty, or compromise.

Actual Costs

Actual costs represent the total expenses incurred during a specific period for goods produced or services rendered, including materials, labor, and overhead.

Perpetual System

An inventory accounting system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.