EXERCISES
16. The following transactions are recorded on the books of Parker and Hoadley, Omaha, Neb., wholesale dealers in tea and coffee. In recording these transactions use is made of the books and forms illustrated in this section.
January 2nd, 1909
A partnership is formed on this date between K. J. Parker and D. C. Hoadley for the purpose of conducting a wholesale tea and coffee business, in the name of Parker & Hoadley, the principal place of business to be Omaha, Neb. Parker invests $3,000.00 cash. Hoadley invests $2,000.00 cash. It is agreed that profits are to be shared on the basis of capital invested, capital to draw interest at 6%, and interest at 6% to be paid on withdrawals. The books are to be closed monthly and the profits divided between the partners. Hoadley is to assume the entire responsibility for the conduct and management of the business, for which he is to receive a salary of $150.00 per month, payable in installments of $75.00 on the 15th and 31st of each month.
Deposited in Western National Bank $5,000.00.
Withdrew from bank, Ck. No. 1 petty cash $25.00.
Bought from Leggitt & Co., New York, 30 chests Japan tea, 1,455# at .37½, 20 chests Oolong tea, 972# at .40; terms net 30, 2/10, f. o. b. N. Y.
Bought from Laughlin & Co., Chicago, 20 sacks Rio coffee, 1,020# at .22½, 20 sacks Java coffee, 985# at .25; 20 sacks Mocha coffee, 970# at .25; terms net 30, 2/10, f. o. b. Omaha.
Paid rent of store 1 month to James Roberts, Ck. No. 2, $60.00.
—3rd—
Sold to Ames & Johnson, 92 12th St., on account, 3 chests Japan tea, 149# at .48; sack Rio coffee, 50# at .28; 1 sack Java coffee, 52# at .32.
Sold to Landis & Snow, So. Omaha, on account, 2 chests Oolong tea, 101# at .52; 1 sack Mocha coffee, 47# at .32; 2 sacks Rio coffee, 98# at .28.
Sold to J. C. Peters & Son, 267 Roberts St., 3 chests Oolong tea, 146# at .52, 5 sacks Rio coffee, 252# at .48.
Bought for cash from Harris & Co., 1 office desk and chair $45.00, gave Ck. No. 3 in payment.
—4th—
Paid freight on coffee from New York by Ck. No. 4, 12.93.
Sold to Wright & Noble, 146 7th St., 2 sacks Java coffee, 99# at .32; 2 sacks Mocha coffee, 101# at .32.
Sold to Horgis & Co., 84 Jackson St., 5 chests Japan tea, 248# at .48.
Sold to Winters & James, 92 Hastings St., 4 chests Japan tea, 201# at .48; 3 chests Oolong tea, 138# at .52; 2 sacks Java coffee, 97# at .32.
Sold for cash 1 sack Rio coffee, 47# at .28; 1 chest Japan tea, 45# at .48.
—5th—
Sold to Cobb & Willet, 892 Park Av., 2 chests Japan tea, 92# at .48; 1 chest Oolong tea, 47# at .52; 1 sack Rio coffee, 44# at .28; 1 sack Java coffee, 45# at .32; 1 sack Mocha coffee, 43# at .32.
Sold to Young & Criger, 62 Watson St., 5 sacks Mocha coffee, 205# at .32; 3 chests Oolong tea, 127# at .52.
Bought from Japan Importing Co., San Francisco, 60 chests Japan tea, 2,700# at .36, f. o. b. Omaha, net cash; gave our note at 10 days without interest in payment.
Paid account of Leggitt & Co., less 2% discount, Ck. No. 5.
—6th—
Ames & Johnson paid their account, less 2% cash discount.
Deposited cash received to date.
Sold to Wade & Francis, 92 Bluff St., 10 chests Japan tea, 448# at .48.
Paid for telegram—petty cash—.40.
Received check from Landis & Snow in full settlement of their account.
Sold to J. C. Peters & Son, 5 sacks Java coffee, 231# at .32.
Sold for cash 3 sacks Rio coffee, 127# at .28; 2 sacks Mocha coffee, 89# at .32; 3 sacks Japan tea, 131# at .48.
—8th—
Deposited cash on hand, also check of Landis & Snow.
Sold to Ames & Johnson, 2 sacks Mocha coffee, 91# at .32; 2 chests Oolong tea, 87# at .52.
Sold to Wright & Noble, 3 chests Japan tea, 129# at .48; 1 chest Oolong tea, 42# at .52.
Paid for fuel by check No. 6 to Rogers Coal Co., 12.00.
Paid clerk's salary, check No. 7, 10.00.
Paid for labor, check No. 8, 16.50.
—9th—
Sold to Watkins & Fish, 64 Prairie Av., 5 chests Oolong tea, 207# at .52.
Bought from Western Grocer Co., Chicago, 50 chests Oolong tea, 418# at .39; 20 sacks Rio coffee, 876# at .22¼; 10 sacks Java coffee, 434# at .25; 15 sacks Mocha coffee, 653# at .25; terms 30 days net, 2/10, f. o. b. Omaha.
Received from Wright & Noble cash in payment of our bill of Jan. 4th, less 2% cash discount.
—10th—
Received from bank, check of Landis & Snow protested for non-payment, protest fees added 1.90.
Sent Laughlin & Co. our check No. 9 in payment of account
—11th—
Sold to Raymond H. Moss, 182 Spring St., 5 chests Japan tea, 217# at .48; 5 sacks Rio coffee, 214# at .28.
Sold to Watkins & Fish, 10 sacks Mocha coffee, 424# at .32.
Cobb & Willet paid their account in full, deducting 2% for cash.
—12th—
Deposited cash on hand.
Sold to Cobb & Willet, 5 chests Japan tea, 213# at .48.
Sold for cash, 2 sacks Rio coffee, 88# at .28.
—13th—
Paid our note to Japan Importing Co., check No. 10.
Paid sundry office expenses from petty cash 3.60.
Sold to Wade & Francis 3 sacks Rio coffee, 123# at .28; 2 sacks Mocha coffee, 86# at .32.
Paid clerk's salary, ck. No. 11, 10.00.
Paid for labor, ck. No. 12, 16.50.
—15th—
Paid ½ month's salary to D. C. Hoadley, ck. No. 13, 75.00.
1st. Balance cash, first charging petty cash expenditures as a cash payment.
2nd. Post purchase book, sales book, journal, and cash book.
3rd. Take a trial balance.
4th. Credit interest to partner's accounts.
5th. Take an inventory of stock on hand. The records show quantities purchased and quantities sold. When the same goods have been purchased at different prices, use the last price paid in figuring inventory.
6th. Close accounts into trading and profit and loss accounts.
7th. Distribute net profits to partners' capital accounts.