XV
1. Give three examples each of deferred expense and income, and accrued expense and income (12 examples). Show these in account form after the account has been adjusted.
2. From the following particulars, take a trial balance of the ledger of the Builders’ Supply Co. on June 30, 19—.
| Warehouse | $ 22,500.00 |
| Land | 7,800.00 |
| Capital Stock | 300,000.00 |
| Surplus | 50,193.00 |
| Stock-in-Trade | 245,680.00 |
| Furniture and Fixtures | 2,500.00 |
| Good-Will | 25,000.00 |
| Trade Debtors | 362,400.00 |
| Cash | 38,490.00 |
| Trade Creditors | 176,700.00 |
| Notes Payable | 15,700.00 |
| Notes Receivable | 18,900.00 |
| Sales | 589,760.00 |
| Purchases | 356,420.00 |
| Salaries | 38,900.00 |
| Coal | 4,200.00 |
| Repairs | 2,800.00 |
| General Expenses | 17,900.00 |
| Depreciation Reserve Warehouse | 5,000.00 |
| Mortgage Payable | 10,000.00 |
| Interest Expense | 475.00 |
| Interest Income | 662.00 |
| Lighting | 700.00 |
| Telephone | 600.00 |
| Insurance | 1,860.00 |
| Taxes | 890.00 |
Draw up a balance sheet and profit and loss statement for the year, taking consideration of these additional data:
- The merchandise on hand is $256,920.
- Coal on hand $500.
- Accrued mortgage interest $600.
- The warehouse has depreciated 5%, and furnitures and fixtures 10%.
- 3% of the Trade Debtors balance is deemed uncollectible.
Note: Do not classify expenses in the profit and loss statement. List them under the two titles, Operating Expenses and Non-Operating Expenses.
3. (a) Using the trial balance data of [Problem 2], set up the ledger of the Builders’ Supply Co.
(b) Close the ledger in accordance with the data given.
(c) Take a trial balance of the ledger after it is closed.