Problem 3. The illustration on [page 41] gives the form to follow in solving this problem.
Problems 4 and 5. Make your assumptions reasonable as to the turnover and the ratios of expenses and profit to sales. Assume a merchandise turnover of 5, and a gross profit of 40% of sales. From these determine roughly the cost of goods sold, the purchases, and the sales figures. Make reasonable provision for bad debts, depreciation, interest, etc., in accordance with the balance sheet requirements. Make the other expense items whatever amounts are necessary to produce the same net profits as is shown by the comparative balance sheet.
Follow closely the illustration in [Chapter VII] for the form of solution to be used for Problem 5.
X
1. Using the schedule shown on [page 82], write out three examples of each class and show their effects in each of the three opposite classes (27 examples).
2. Set up ledger “T” accounts for each of the illustrations on [pages 82-84], entering therein the proper amounts, debit and credit.
XI
1. (a) Analyze the following transactions from the seller’s viewpoint and name the debit and credit elements of each to show:
1. The increase or decrease of assets, liabilities, and proprietorship.
2. The account titles under each of the general groups.