XXVII
Draw up a balance sheet and statement of profit and loss for Wm. C. Baldwin, taking into account the following adjustments and inventories:
- Interest prepaid on note at bank $3.33.
- Interest accrued on following notes:
- G. C. Furnald$39.00
- S. T. Hartley 10.83
- A. D. Livingston 7.50
- ———
- Total$57.33
- Expense supplies inventory $14.50.
- Insurance unexpired $330.
- Merchants’ Association dues prepaid $47.92.
- Delivery expenses accrued $75.
- Salesmen’s salaries accrued $100.
- Advertising accrued $50.
- Advertising prepaid $200.
- Office salaries accrued $31.67.
- Prepaid rent $207.26.
- Furniture and fixtures are to be depreciated at the rate of 1% per month.
- Uncollectible accounts are estimated as ½% on sales for the month.
- Coal inventory $19,352.30.
Instructions
Use the method of the work sheet in doing this assignment. Follow closely the illustration in the text. After the work sheet has proved the accuracy of the work, draw up the formal statements.
XXVIII
1. Adjust and close Wm. C. Baldwin’s ledger, taking account of the adjustment data given in [Assignment XXVII].
2. Take a post-closing trial balance.
APPENDIX B
PRACTICE WORK FOR STUDENT—
SECOND HALF-YEAR
The practice work for the second semester is designed to give facility in the use of accounting records, and accuracy and confidence in the handling of a volume of transactions. Accordingly, this work consists largely of two somewhat extended problems to be recorded in blank books. The first is a problem in partnership, involving particularly the adjustment of partners’ accounts at the close of the fiscal period. Many points met in the operation of records using controlling accounts are included. The second is concerned with a trading corporation. Here some of the problems peculiar to the corporation are met, as well as those connected with the operation of a departmental business.