EXERCISE
The books of the Star Coal Company, a corporation with a paid-up capital of $10,000.00, have been kept by single entry. The following facts are gathered from the books:
| Cash in Bank | $3,500.00 | |
| Personal Accounts | Debit Balances | 6,500.00 |
| Cash in Office | 200.00 | |
| Personal Accounts | Credit Balances | 2,500.00 |
An inventory results as follows:
| Coal | 3,750.00 |
| Horses and Wagons | 800.00 |
| Furniture and Fixtures | 300.00 |
Make necessary journal entries to change to double entry. Provide a reserve of 5% for uncollectible accounts, 10% for depreciation of horses and wagons, 10% for depreciation of furniture and fixtures. Declare a dividend of 10% and transfer balance of profits to surplus, making all journal entries to record these transactions.
TWO HEMISPHERICAL BOTTOMS FOR 100,000-GALLON ELEVATED TANKS RIVETED TOGETHER, SHOWING CLASS OF WORKMANSHIP NECESSARY ON WORK OF THIS CHARACTER
Chicago Bridge & Iron Works, Chicago, Ill.