(4) Insurance: The total yearly insurance should be divined by twelve, to obtain the amount to be charged to this account monthly.
(5) Proprietor's salary: Many battery service station proprietors do not charge their own living as an expense. That's a serious mistake, of course. If those same men should hire a manager to run their service station, the manager's salary would naturally be charged to expense. The amount of money withdrawn from the business by the proprietor should therefore be charged to expense.
(6) Rent: The amount of money you pay monthly for rent should be charged to this account. If, on the other hand, you own your own building, charge the business with rent, the same as if you were paying it to someone else. Every business should stand rent; besides, the building itself should show itself a profitable investment. Charge yourself just as much as you would anyone else; don't favor your business by undercharging, nor handicap it by overcharging.
(7) Supplies: The cost of all supplies, small tools and miscellaneous articles which are bought for use in the business and not for sale should be charged to this account.
(8) Taxes: The yearly amount of taxes paid should be divided by twelve, in order to arrive at the monthly proportion to be charged to this account.
(9) Wages: The amount of wages paid to employees should be charged to this account. Care should be taken to determine the actual amount for the month, if wages are paid on a daily or weekly wage rate.
(10) Miscellaneous: Any expenses of the business not listed above will be charged to this account. This may include such items as donations, loss on bad accounts, and such like items of expense. You may itemize these into as many headings as you desire, but for the purposes of the Daily Exhibit combine all of them under "Miscellaneous Expense."
All these expense items are then added together, and this total is entered on the line marked "Total Expenses."
Deduct "Total Expenses" from "Gross Profit" to arrive at "Net Profit."
To arrive at the totals for "This Year to Date," carry the figures forward from the previous month's sheet and add figures for present month.