WHEEL LATHE SHOP IN THE BALDWIN LOCOMOTIVE WORKS, PHILADELPHIA, PENNA.

Center-Ruled Balance Ledger

SAMPLE TRANSACTIONS

62. The following transactions exhibit the accounts which are special to a manufacturing business without including the commercial accounts which record sales. The manner of keeping those accounts is the same for a manufacturing business as for any other.

Being a business conducted by a corporation these accounts include the stock accounts usually kept in the general books. The auxiliary stock books are omitted, it being felt that the special illustrations of such books will have been sufficient to give the student a thorough understanding of their uses.

The books required in the manufacturing business, omitting sales accounts, are invoice register or purchase book, cash book, journal, pay-roll distribution book, purchase ledger, and general ledger.

A corporation known as the Atlas Manufacturing Co., is organized with an authorized capitalization of $100,000.00, with the provision that business is to begin when $50,000.00 of the stock has been subscribed, and $25,000.00 paid in. The incorporators are Henry Biddle, John Noonan, David Snow, Henry Farwell, and George Dunn. Each incorporator subscribes for $10,000.00 stock payable one-half down and one-half in 30 days. The detailed record follows:

—March 1—
Received subscriptions to the capital stock,payable one-half down, and one-half in 30days, from the following. Stock is to beissued when paid in full.
Henry Biddle $10,000.00
John Noonan10,000.00
David Snow10,000.00
Henry Farwell10,000.00
George Dunn10,000.00
Received cash in payment of subscriptions from the following:
Henry Biddle 5,000.00
John Noonan5,000.00
David Snow5,000.00
George Dunn5,000.00
Received from
Henry Farwell
His note at 30 days with 6% interest in payment of installment on his subscription5,000.00
————
Deposited cash in Second National Bank20,000.00
—2—
Received from
Derby Desk Co.
Invoice #1, terms N/30
Charge to office fixtures 350.00
—3—
Leased for two years from Jacob Newmana factory building at an annual rental of$1,800.00, payable quarterly in advance.Gave him check No. 1 for 3 months' rent.
—4—
The following invoices are entered—
Meyers Engine Co.
Invoice No. 2, terms N/30
Charge to machinery 1,500.00
—4—
Patton Machine Co.
Invoice No. 3, terms N/30
Charge to machinery 3,500.00
—4—
Danforth & Co.
Invoice No. 4, terms N/30
Charge to material 960.00
—5—
The following invoices are entered—
Franklin Printing Co.
Invoice No. 5, terms 2/10, N/30
Charge to office supplies 165.40
—5—
Slade Oil Co.
Invoice No. 6, terms 3/10, N/30
Charge to supplies 54.25
—6—
Norwich Machine Co.
Invoice No. 7, terms N/30
Charge to machinery 8,500.00
—6—
Paid freight by check No. 2 to T. Fogarty, Agt.
Machinery216.20
Materials11.60227.80
———
—8—
Francis & Co.
Invoice No. 8, terms 3/10, N/30
Charge to materials 640.00
—9—
Stevens & Co.
Invoice No. 9, terms 3/10, N/30
Charge material 225.00
—9—
Gave Danforth & Co.
Check No. 3
To pay bill of March 2960.00
Less 2%19.20940.80
———
—10—
Lackawana Coal Co.
Invoice No. 10, terms N/30
Charge power, heat, & light 185.00
—11—
Gave Franklin Printing Co.
Check No. 4.
To pay bill of March 4165.40
Less 2% 3.31162.09
———
—12—
Danforth & Co.
Invoice No. 11, terms 2/10, N/30
Charge material 315.00
—13—
Drew check No. 5. for 2 weeks' pay-roll220.50
Charge machinery for cost of installing178.50
Building maintenance for repairs to building per pay-roll distribution42.00
—15—
Gave Derby Desk Co.
Check No. 6
To pay bill of March 1 350.00
—15—
Gave Slade Oil Co.
Check No. 7
To pay bill of March 554.25
Less 3%1.6352.62
———
—17—
Gave Francis & Co.
Check No. 8
To pay bill of March 7640.00
Less 3%19.20620.80
———
—18—
Gave Stevens & Co.
Check No. 9
To pay bill of March 8225.00
Less 3%6.75218.25
———
—19—
Eureka Tool Co.
Invoice No. 12, terms N/30
Charge tools250.00
—20—
Check No. 10 for 1 week's pay-roll
Charge labor326.25
Charge tools27.50353.75
———
(Making tools for shop per pay-roll distribution)
—22—
Received from Danforth & Co.
Credit memo for damaged goods in lot covered by invoice dated 3/12 63.00
Credit material
Gave them check No. 11
For acct.252.00
Less 2%5.04246.96
———
—27—
Check No. 12 for 1 week's pay-roll 342.70
Charge labor per pay-roll distribution
—30—
Gave Norwich Machine Co.
Note of Henry Farwell5,000.00
Accrued interest 25.005,025.00
———
Gave them check No. 13 to pay their account3,475.00
—31—
Salaries check No. 14 for salaries of Supt. & Clerks350.00