Adjusting Entries
Selected Ledger Accounts Used by American Advertising Limited

Adjusting entries
Selected ledger accounts used by American 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.
$\begin{array}{lllll}\text { Cash } & 22 & \text { Accounts Payable } & 41 & \text { Fees Earned } \\\text { Accounts Receivable } & 23 & \text { Income Taxes Payable } & 51 & \text { Salaries Expense } \\\text { Office Supplies } & 24 & \text { Unearned Fees } & 52 & \text { Office Supplies Expens } \\\text { Unexpired Insurance } & 25 & \text { Dividends Payable } & 53 & \text { Rent Expense } \\\text { Office Equipment } & 31 & \text { Share Capital } & 54 & \text { Insurance Expense } \\\text { Accumlated Depr: } & 32 & \text { Retained Earnings } & 55 & \text { Depreciation Expense: } \\\text { Expense Office Equip } & 33 & \text { Dividends } & & \text { Office Equip. } \\& & & 56 & \text { Income Taxes Expense }\end{array}$
$$\begin{array} { | l | l | c | c | } \hline && \text { Account(s) } & \text { Accounts(s) } \\\hline & \text { Transactions } & \text { Debited } & \text { Credited } \\ \hline & \begin{array} { l } \text { Example: Paid rent on the building for the current } \\\text { period. }\end{array} &53& 1\\ \hline \text { a) } & \begin{array} { l } \text { Received an advance payment from a client for } \\\text { services to be rendered over next six months. }\end{array} & \\\hline \text { b) } & \text { Paid salaries of employees. } & \\\hline \text { c) } & \begin{array} { l } \text { Bought a three-year insurance policy and paid in } \\\text { full. }\end{array} & & \\\hline \text { d) } & \begin{array} { l } \text { Performed services for a client, received part of } \\\text { fee in cash remainder to be collected in } 30 \text { days. }\end{array} & & \\\hline \text { e) } & \begin{array} { l } \text { Purchased office equipment; paid [part] in cash, } \\\text { balance payable in } 60 \text { days. }\end{array} & & \\\hline \text { f) } & \begin{array} { l } \text { Purchased a large quantity of office supplies on } \\\text { credit. }\end{array} & & \\\hline \text { g) } & \text { Declared a dividend to be paid in 45 days. } & & \\\hline \text { h) } & \begin{array} { l } \text { Made an adjusting entry for the portion of the } \\\text { insurance premium which had expired. }\end{array} & & \\\hline \text { i) } & \begin{array} { l } \text { Made an adjusting entry to record depreciation for } \\\text { the period. }\end{array} & & \\\hline \text { j) } & \begin{array} { l } \text { Made an. adjusting entry for office supplies used } \\\text { during this period. }\end{array} & & \\\hline \text { k) } & \begin{array} { l } \text { Made an adjusting entry to recognize that a } \\\text { portion of the fee received in advance (transaction } \\\text { a) had now been earned. }\end{array} & & \\\hline \text { l) } & \text { Paid the dividend declared in transaction g. } & \\\hline\end{array}$$