and set up the debits and credits therein.
Transfer the net balance of Profit and Loss account to Kelly, Personal; and transfer the net balance of the latter account to Kelly, Capital.
XIII
1. Analyze the following transactions 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.
- Credit sales to customers $389,650.
- Sales returns $9,480.
- Inventory at beginning of year $62,780.
- Credit purchases $206,240.
- Purchase returns $4,760.
- Cash received from customers $250,000.
- Sales discounts allowed $1,280.
- Purchase discounts taken $3,560.
- Cash paid creditors $175,000.
- Freight-in $2,670, and freight-out $3,935, were paid in cash.
2. Bought a motor truck for $2,250, on which the freight charges were $40 in addition. Accessories cost $150 and of these the speedometer was later sold for $50, its cost price. Set up the Delivery Truck account and show it properly adjusted at the close of the period to take account of 10% depreciation.
3. An old building cost $10,000.
- Renovation with betterments $1,200.
- Assessments for paving the street were $750.
- An extension not joined to the main building cost $2,000.
- The extension was sold for $2,500 cash early
- in the second year.
- Loss by fire at the end of the third year amounted
- to $3,000, which the insurance company made good
- by repairing the damage.
- Depreciation at 5% per annum is calculated on the
- balance of the Building account at the end of each year.