3. The following transactions are to be entered in a cash book, cash receipts and cash disbursements bound together. Post daily to “T” ledger accounts set up on plain paper. Follow [Forms 10 and 11 shown on pages 148-149]. Post total receipts and total disbursements for the week to the ledger Cash account used in Problem 1.
| May | |
| 8. | Balance from previous week’s transactions, $1,691.96. |
| Paid Green & Greenberger on account $135; | |
| American Cloak Co. $45. | |
| Received on account from Miss Frances Clyne $102; | |
| and Miss Lula Fields $178. | |
| Cash purchases were $340.25. | |
| 9. | Paid Acme Cloak & Suit Co. $165; |
| Lakeview Garment Co. $135. | |
| Received on account from Miss Louise Fox $215; | |
| and Miss Alice Gaynor $176. | |
| Cash sales were $189. | |
| 10. | Paid salesmen’s salaries $230; for delivery service $150. |
| Received on account from Miss Katherine Kennedy $216; | |
| and Mrs. Johanna Lambert $75. | |
| Received rent from portion of store $50. | |
| 12. | Paid Empire Dress & Suit Co. on account $150; |
| Elmer Cloak & Suit Co. $125. | |
| Paid freight on purchases $41.37. | |
| Received on account from Miss Pauline Marks $167.50. | |
| Cash sales $576. | |
| 13. | Paid telephone bill, $27; advertising bill for |
| newspaper insertions $75. | |
| Received on account from Mrs. D. J. McCormack $167. | |
| Received payment of note of J. I. Ardsley $500, and interest $7.50. | |
| 14. | Paid Daisy Cloak & Suit Co. $150 on account. |
| Paid office salaries $100. | |
| Received from Miss Sue Robertson $125. | |
| Proprietor, M. D. James, drew for personal use $50. | |
| Cash was short $4.87. |
4. The following data have been taken from the ledger of the Port Bedford Terminal Company, on December 31, 19—.
| Real Estate, Wharves, and Warehouses | $30,932,394 |
| Terminal Railway | 807,052 |
| Marine Equipment | 298,994 |
| Machinery and Electric Plant | 177,588 |
| Depreciation Reserve, Real Estate, Wharves, and Warehouses | 4,187,074 |
| Terminal Railway Depreciation Reserve | 45,817 |
| Marine Equipment Depreciation Reserve | 23,942 |
| Machinery and Plant Depreciation Reserve | 16,894 |
| Cash in Bank | 192,806 |
| Accounts Receivable | 451,406 |
| Materials and Supplies Purchases | 128,894 |
| Investments in U. S. Liberty Bonds | 1,809,000 |
| Capital Stock | 15,000,000 |
| First Mortgage 4% Gold Bonds, due August 1, 1951 | 12,000,000 |
| Accounts Payable | 652,644 |
| Notes Payable | 247,000 |
| Surplus | 1,231,540 |
| Warehouse Income | 2,681,694 |
| Income from Piers | 2,140,562 |
| Sundry Income | 436,353 |
| Maintenance of Property | 1,160,453 |
| Selling and Service Costs | 1,081,526 |
| General Expenses | 462,386 |
| Taxes | 681,021 |
| Bond Interest | 480,000 |
| (a) Set these items up in the ledger. | |
| (b) Take a trial balance. | |
Instructions
Problem 1. Use plain paper with “T” accounts for the ledger.
Problem 3. Use a double sheet of two-column journal paper for the cash book. On the receipts side enter the balance brought forward in the outer column. For current and summary entry follow carefully the forms [shown on pages 148-149].
At the end of the week summarize the cash book and post the totals to the ledger Cash account. Balance and rule the cash book, being careful to carry forward the balance to the next week.
XXI
1. The following transactions should be entered in a general journal, debit and credit, with full explanation.