Adjustments and Closing Process--Basic Entries
Selected Ledger Accounts Used by Goldstone

question 40

Essay

Adjustments and closing process--basic entries
Selected ledger accounts used by Goldstone Advertising Limited, 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.
$\begin{array}{llllll}1 & \text { Cash } & 22 & \text { Accounts Payable } & 41 & \text { Fees Earned } \\2 & \text { Accounts Receivable } & 23 & \text { Income Taxes Payable } & 51 & \text { Salaries Expense } \\3 & \text { Office Supplies } & 24 & \text { Unearned Fees } & 52 & \text { Office Supplies Expense } \\4 & \text { Unexpired Insurance } & 30 & \text { Share capital } & 53 & \text { Rent Expense } \\5 & \text { Office Equipment } & 31 & \text { Retained Earnings } & 54 & \text { Insurance Expense } \\6 & \text { Accumlated Depr. } & 32 & \text { Dividends } & 55 & \text { Depreciation Expense: } \\& \quad \text { Office Equip } & 35 & \text { Income Summary } & & \text { Office Equip. } \\21 & \text { Dividends Payable } & & & 56 & \text { Income Taxes Expense }\end{array}$

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Definitions:

Net Operating Income

The profit a company generates from its regular business operations, excluding expenses and revenues from non-operating activities.

Client-visits

The act of meeting with clients or potential clients, often for the purposes of discussing business opportunities, providing services, or strengthening relationships.

Activity Variance

The difference between the budgeted and actual amount of an activity, such as hours worked or units produced, affecting budget and cost planning.

Budgeting

A financial planning process that involves the estimation of future revenues and expenses over a specified period.