TREATMENT OF PROTESTED PAPER
14. When a note, draft, or check is protested, the bank will charge us with the protest fee in addition to the face of the paper. The total amount must then be charged to the one from whom the paper was received. Suppose the check of Jones & Laughlin for $100.00 goes to protest and is returned to us with a protest fee of $2.50—the entry will be:
| Jones & Laughlin | $102.50 | |
| Bank | $102.50 | |
| Check No. 16 given to First Nat. | ||
| Bank to cover J. & L. check for | ||
| $100.00, protest fee $2.50. |
SAMPLE TRANSACTIONS
15. D. A. Hall is engaged in the business of a wholesale dealer in men's and boys' clothing. On Feb. 1st. his balance sheet is as follows:
| Balance Sheet, Feb. 1st, 1909. | ||||
|---|---|---|---|---|
| Assets | ||||
| Cash | ||||
| In Bank | $1,765.20 | |||
| In Office | 125.00 | |||
| Total Cash | $1,890.20 | |||
| Accounts and Bills Receivable | ||||
| Bills Receivable | 850.00 | |||
| Henry James, Due | ||||
| Feb. 5 | 350.00 | |||
| David Traver & Co., Due | ||||
| Feb. 15 | 500.00 | |||
| Accounts Receivable | 1,124.00 | |||
| Frank Weitz | 234.00 | |||
| John Gorham | 150.00 | |||
| George Golden | 300.00 | |||
| Clayton & Co. | 275.00 | |||
| Henry Ames | 165.00 | |||
| Total Accounts and Bills Rec. | 1,974.00 | |||
| Inventory | ||||
| Men's clothing | $2,240.00 | |||
| Boys' " | 1,200.00 | |||
| Total Inventory | $3,440.00 | |||
| Total Assets | $7,304.20 | |||
| Liabilities | ||||
| Accounts and Bills Payable | ||||
| Bills Payable | 650.00 | |||
| Henry Weir & Co., Due | ||||
| Feb. 7 | 450.00 | |||
| A. Stein & Co., Due | ||||
| March 1 | 200.00 | |||
| Accounts Payable | 675.00 | |||
| D. Meyer & Bro. | 150.00 | |||
| Altman & Sons | 350.00 | |||
| Garson & Co. | 175.00 | |||
| Total Accounts and Bills | ||||
| Payable | 1,325.00 | |||
| Total Liabilities | 1,325.00 | |||
| Present Worth | 5,979.20 | |||
The following transactions are entered on the books:
| —Feb. 1st— | |||
| Sold to D. A. Marcus & Son | |||
| 10 overcoats | 7.50 | 75.00 | |
| 10 men's suits | 6.75 | 67.50 | 142.50 |
| —1st— | |||
| Sold to H. A. Branch | |||
| 15 boys' suits | 3.50 | 52.50 | |
| —1st— | |||
| Rec'd from Geo. Golden | |||
| Cash on account | 150.00 | ||
| —2nd— | |||
| Deposited in 1st Nat. Bank | 150.00 | ||
| —2nd— | |||
| Sold to John Gorham | |||
| 10 men's suits | 7.00 | 70.00 | |
| 10 men's suits | 6.50 | 65.00 | $135.00 |
| —2nd— | |||
| Sold to Larson & Anderson | |||
| 5 boys' suits | 2.75 | 13.75 | |
| 10 men's suits | 6.50 | 65.00 | 78.75 |
| —2nd— | |||
| Sold for cash | |||
| Men's clothing | 37.50 | ||
| —3rd— | |||
| Sold to Tallman & Co. | |||
| 15 men's overcoats | 7.25 | 108.75 | |
| —3rd— | |||
| Paid 1 month's rent, Ck. | |||
| No. 1 | 75.00 | ||
| —3rd— | |||
| Received from John Gorham | |||
| Cash on account | 150.00 | ||
| —4th— | |||
| Bought from Carson & Scott | |||
| 36 men's corduroy coats | 3.00 | 108.00 | |
| 12 men's corduroy coats | 3.50 | 42.00 | 150.00 |
| Terms 2/10, 1/30, n/60 | |||
| —4th— | |||
| Deposited in 1st Nat. Bank | 187.50 | ||
| —4th— | |||
| Sold to Harris & Rogers | |||
| 12 men's corduroy coats | 3.75 | 45.00 | |
| 5 overcoats | 8.00 | 40.00 | 85.00 |
| —4th— | |||
| Received from Frank Weitz | |||
| Note at 30 days, 6% | 234.00 | ||
| —5th— | |||
| Sent to D. Meyer & Bro. Ck. | |||
| No. 2 | $150.00 | ||
| —5th— | |||
| Received from Henry James | |||
| Cash to apply on note | 200.00 | ||
| Cash for interest | 1.75 | $201.75 | |
| New note 30 days, 6% | 150.00 | ||
| —5th— | |||
| Bought from Adler & Co. | |||
| 50 men's suits | 6.25 | 312.50 | |
| Terms 3/10, 1/30, n/60 | |||
| —5th— | |||
| Paid salesman's salary Ck. | |||
| No. 3 | 25.00 | ||
| —5th— | |||
| Drew for personal use Ck. | |||
| No. 4 | 50.00 | ||
| —7th— | |||
| Sold to Henry Ames | |||
| 20 men's suits | 7.50 | 150.00 | |
| 10 boy's suits | 2.75 | 27.50 | 177.50 |
| —7th— | |||
| Sold to Ackley & Son | |||
| 10 boy's overcoats | 3.00 | 30.00 | |
| 10 boy's suits | 2.75 | 27.50 | 57.50 |
| —7th— | |||
| Received from Clayton & Co. | |||
| Check to apply on acct. | 200.00 | ||
| —7th— | |||
| Deposited in 1st Nat. Bank | 401.75 | ||
| —7th— | |||
| Paid our note to H. Weir & Co. | |||
| Check No. 5 | 450.00 | ||
| —8th— | |||
| Sold to H. J. Andrews | |||
| 10 men's overcoats | 8.00 | 80.00 | |
| 12 men's corduroy coats | 4.50 | 54.00 | $134.00 |
| —8th— | |||
| Paid express on shipment from | |||
| Carson & Scott, Ck. No. 6 | .90 | ||
| —8th— | |||
| Received from Henry Ames | |||
| Cash on account | 165.00 | ||
| —8th— | |||
| Sold for cash | |||
| 1 job lot boy's clothing | 87.50 | ||
| —9th— | |||
| Deposited in 1st Nat. Bank | 252.50 | ||
| —9th— | |||
| Received from bank, check of | |||
| Clayton & Co., protested | |||
| for non-payment. | |||
| Amount of check | 200.00 | ||
| Protest fees | 2.50 | ||
| —10th— | |||
| Sold to Harris & Landis | |||
| 10 men's overcoats | 7.75 | 77.50 | |
| —10th— | |||
| Sold to Frank Weitz | |||
| 12 men's corduroy coats | 3.75 | 45.00 | |
| —10th— | |||
| Paid Carson & Scott | |||
| Check No. 7 | 147.00 | ||
| Discount 2% | 3.00 | ||
| —10th— | |||
| Paid electric light bill | |||
| Check No. 8 | 3.75 | ||
| —10th— | |||
| Received from Clayton & Co. | |||
| Cash to redeem protested | |||
| check | $202.50 | ||
| —10th— | |||
| Inventory at close of business, | |||
| Feb. 10 | |||
| Men's clothing | 1,898.75 | ||
| Boy's clothing | 1,247.75 | ||
Journal entries are to be made to get the accounts, as shown on Feb. 1st, recorded on the books. The transactions are properly entered in journal, cash book, sales book, and invoice register, and posted to ledger. The accounts in the general ledger are closed into trading, and profit and loss—the net profit is credited to proprietor's account—a trial balance is taken after the ledger is closed, and a balance sheet is made. Statements are prepared from sales and purchase ledgers, which agree with the balances of their controlling accounts. All accounts in the general ledger are properly ruled and balances carried forward.
