Post completely, being particularly careful in handling items affecting controlling accounts, especially when posting the general journal.
Take a trial balance of the general ledger as of February 28. In making record of this and succeeding trial balances, to obviate the necessity of rewriting account titles, fold back the two money columns on page 17 so that they “face up” on page 18, thus providing four money columns. This shortened leaf may now be used for recording trial balances for February and March. Similarly with succeeding leaves.
Do not fail to record the balances of customers’ and creditors’ accounts in the proper places, and prove the totals against their respective controlling accounts.
VII
Summarized transactions for March were:
- Purchases:
- Wm. Taylor, Son & Co., 3/5, 2/10, n/30, $8,942.50.
- Newcomb Endicott Co., 2/15, n/60, $7,414.
- U. S. Dry Goods Co., 3/10, 2/15, n/60, $7,609.40.
- Wico Mills, Inc., 2/10, 1/30, n/60, $8,337.80.
- Carter Dry Goods Co., 2/10, 1/30, n/60, $8,790.
- Bentley, Gray & Co., 2/10, n/60, $10,890.45.
- Marshall Field & Co., 3/10, 2/15, n/60, $10,219.
- Cash purchases $3,390.
- Sales:
- Young, Smith, Field Co., 2/10, n/30, $6,874.32.
- Thompson Hudson Co., 2/10, n/30, $4,732.46.
- Rogers & Son, 2/10, n/30, $3,146.34.
- Public Bargain Store, 2/10, n/30, $3,590.70.
- National Dress Co., 2/10, n/30, $4,346.90.
- New York Silk Co., 2/10, 1/15, n/30, $6,784.50.
- Melrose Dry Goods Co., 2/10, 1/15, n/30, $7,894.80.
- T. H. Miller, 2/10, n/30, $6,237.40.
- Macmillian & Co., 2/10, n/30, $2,476.50.
- Hudson Dry Goods Co., 2/10, 1/15, n/30, $4,475.
- Falk & Taylor, 2/10, 1/15, n/30, $4,790.
- Eagle Dress Goods Co., 2/10, n/30, $3,105.
- Daniel & Co., 2/10, n/30, $3,490.70.
- Childs & Son, 2/10, 1/15, n/30, $4,789.40.
- Arnold Sheriff & Co., 2/10, 1/15, n/30, $3,980.40.
- Cash sales $2,462.75.
- Wooster drew merchandise $100.
- Journal:
- Gave Marshall Field & Co. our 60-day 6% note due May 15,
- for their bill of February, $17,792.90 less 3%.
- Received merchandise returned by Melrose Dry Goods Co. $1,487.90.
- Returned goods to Associated Dry Goods Co. $416.90.
- Received a credit memo for $162.40 from Claflins, Inc.
- for spoiled goods.
- Macmillian & Co. gave us their 60-day 6% note, due May 25,
- for balance of January bill $4,207.50.
- Marquis Dress Goods Co. was allowed $485 for delay in transit.
- Out-freight for February was $139.86.
- Metropolitan Dry Goods Co. issued their 30-day 6% note,
- due April 15, for January bill $4,180.
- Cash Receipts:
- Century Dress Goods Co. paid their note due March 28 with interest.
- Baird Dry Goods Co., February bill $4,618.73 less 2%.
- Burrows Dry Goods Co., February bill $3,289.49 net.
- Eagle Dress Goods Co., February bill $4,127.49 less 2%.
- Emporium Dry Goods Co., January bill $1,461.93 net.
- Marquis Dress Goods Co., December bill $2,795 net.
- Melrose Dry Goods Co., February bill $4,278.18 less 1%.
- T. H. Miller, December bill, $1,000 on account.
- National Dress Co., December bill, $1,000 on account.
- Southern Dry Goods Co., balance of February bill, $4,242.92 less 2%.
- Young, Smith, Field Co., March bill $6,874.32 less 2%.
- Thompson Hudson Co., March bill $4,732.46 less 2%.
- New York Silk Co., March bill $6,784.50 less 1%.
- Hudson Dry Goods Co., March bill $4,475 less 2%.
- Daniel & Co., March bill $3,490.70 less 2%.
- Childs & Son, March bill $4,789.40 less 2%.
- Arnold Sheriff & Co., March bill $3,980.40 less 2%.
- Rogers & Son, March bill $3,146.34 net.
- The receivers for Wilson Williams Co. declared March 15 an
- initial liquidating dividend of 35%, which was received.
- Cash Disbursements:
- Salesmen’s salaries $2,000.
- Salesmen’s traveling expenses $1,896.42.
- Chauffeurs’ and shipping clerks’ wages $435.
- Garage rent $125.
- Gasoline, oil, and minor parts, $116.84.
- Crates, boxes, and packing materials, $412.80.
- Advertising as per schedule $3,000.
- Rent for April $1,250.
- Insurance policies, elevator, fire, plate glass, burglary, $550.
- Lighting and heating $512.90.
- Office salaries $1,872.
- Books, stationery, $226.40.
- Telephone and telegraph, postage, $896.40.
- Changing partitions $280.
- Wages of cleaners and watchman $490.
- Painting of partitions $28.
- New bell on elevator $18.75.
- Contribution to Salvation Army Drive $100.
- Cotten drew $400; Wooster $500.
- Cash was short $12.92.
- Freight bill $262.90.
- American Dry Goods Co., balance of February bill $12,509.92 less 2%.
- Associated Dry Goods Co., balance of February bill $13,145.80 less 2%.
- Claflins, Inc., balance of February bill $10,735.40 less 2%.
- Miller & Rhoades, January bill $2,689.40 net.
- Marshall Field & Co., March bill $10,219 less 2%.
- Paid Marshall Field & Co. and American Dry Goods Co.
- December notes with interest.
- Lent $5,000 to Woolsey, in return for which he issued to the
- order of the firm his six months’ 6% note for a similar amount.
Instructions
Record the interest received on notes receivable in the General Ledger column of the cash receipts journal.
Enter the Woolsey note in the proper account.
A liquidating dividend represents the amounts disbursed by a receiver to the creditors of the bankrupt.