To secure the maximum of practice with a minimum of detail work, the transactions for each month are summarized and are to be dated as of the last day of the month. The dates of issuance or maturity of the notes, however, are given so that this can be recorded.
The student should become familiar with the following ledger accounts to which he should strictly adhere in the classification of all transactions. These accounts are to be opened in the ledger at the places indicated. The first numeral following the account title indicates the page, the second the line on that page. “Line 1” refers to the very first line at the top of the page.
Ledger Accounts (40 pages)
General ledger, pages 1-27
Sales ledger, ” 28-34
Purchase ledger, ” 35-40
| Page | Line | |
| Cash | 1 | 1 |
| Investments | 1 | 12 |
| Notes Receivable | 1 | 18 |
| Accounts Receivable | 1 | 30 |
| Reserve for Doubtful Accounts | 2 | 28 |
| Merchandise Inventory | 2 | 34 |
| Notes Receivable, Special | 3 | 1 |
| Deposit with Westchester Lighting Co. | 3 | 11 |
| Delivery Equipment | 3 | 21 |
| Depreciation Reserve Delivery Equipment | 3 | 31 |
| Store Furniture and Fixtures | 4 | 1 |
| Depreciation Reserve Store Furniture and Fixtures | 4 | 11 |
| Office Furniture and Fixtures | 4 | 22 |
| Depreciation Reserve Office Furniture and Fixtures | 4 | 31 |
| Building | 5 | 1 |
| Depreciation Reserve Buildings | 5 | 11 |
| Notes Payable | 5 | 22 |
| Accounts Payable | 6 | 1 |
| Mortgage Payable | 6 | 30 |
| C. Allen Cotten, Profits Loan Account | 7 | 1 |
| Scott Wooster, Profits Loan Account | 7 | 12 |
| Landsdowne Woolsey, Profits Loan Account | 7 | 26 |
| C. Allen Cottenm Capital | 8 | 1 |
| C. Allen Cotten, Personal | 8 | 13 |
| Scott Wooster, Capital | 9 | 1 |
| Scott Wooster, Personal | 9 | 13 |
| Landsdowne Woolsey, Capital | 10 | 1 |
| Landsdowne Woolsey, Personal | 10 | 13 |
| Profit and Loss | 11 | 1 |
| Sales | 12 | 1 |
| Sales Returns and Allowances | 12 | 19 |
| Purchases | 13 | 1 |
| Purchases Returns and Allowances | 13 | 19 |
| In-Freight and Cartage | 14 | 1 |
| Salesmen’s Salaries | 14 | 13 |
| Salesmen’s Traveling Expenses | 14 | 26 |
| Advertising | 15 | 1 |
| Delivery Expense | 15 | 13 |
| Shipping Supplies | 15 | 26 |
| Out-Freight | 16 | 1 |
| Office Salaries | 16 | 13 |
| Office Supplies | 16 | 26 |
| Office Expense | 17 | 1 |
| General Expense | 17 | 13 |
| Cash Short and Over | 17 | 29 |
| Charity Donations | 18 | 1 |
| Association Dues | 18 | 13 |
| Light and Heat | 18 | 26 |
| Rent | 19 | 1 |
| Insurance | 19 | 13 |
| Taxes | 19 | 26 |
| Depreciation | 20 | 1 |
| Sales Discount | 20 | 13 |
| Bad Debts | 20 | 26 |
| Interest Cost | 21 | 1 |
| Purchase Discount | 21 | 13 |
| Interest Income | 21 | 26 |
| Miscellaneous Sales | 22 | 1 |
On pages 28-34 inclusive, enter the following customers’ accounts, four to the page:
- Arnold Sheriff & Co.
- Atlas Dry Goods Co.
- Baird Dry Goods Co.
- Bostonian Dry Goods Co.
- Burrows Dry Goods Co.
- Century Dress Goods Co.
- Childs & Son
- Daniel & Co.
- Eagle Dress Goods Co.
- Emporium Dry Goods Co.
- Falk & Taylor
- Hudson Dry Goods Co.
- Macmillian & Co.
- Marquis Dress Goods Co.
- Melrose Dry Goods Co.
- Metropolitan Dry Goods Co.
- Henry Miller
- T. H. Miller
- National Dress Co.
- New York Silk Co.
- Public Bargain Store
- Rogers & Son
- Silk & Dress Goods Exchange
- Southern Dry Goods Co.
- Thompson Hudson Co.
- Wilson Williams Co.
- Young, Smith, Field Co.
Beginning on page 35, enter these creditors’ accounts, four to a page.
- American Dry Goods Co.
- Associated Dry Goods Co.
- Bentley, Gray & Co.
- Claflins, Inc.
- Carter Dry Goods Co.
- Marshall Field & Co.
- Miller & Rhoades, Inc.
- Newcomb Endicott Co.
- Wm. Taylor, Son & Co.
- U.S. Dry Goods Co.
- Wico Mills, Inc.
II
C. Allen Cotten, who has long been in the wholesale merchandising business, anticipating a revival of commercial activity in the early part of 19—, decided to enlarge his business. Accordingly, on January 2, 19—, he enters into a partnership agreement with Scott Wooster, a former executive of the United Dry Goods Co., of Philadelphia, and Landsdowne Woolsey, a retired real estate and insurance broker of New York.