(a) Make the necessary entries to open the books of the corporation.
(b) Make the necessary entries to close the books of A.
Instructions
Transfer the net claim against Marshall Field & Co., appearing in their account, to Notes Payable through the general journal. The balance of the note remaining in the latter account will be offset by the debit to be posted from the cash disbursements journal. In calculating the interest to be paid on the above note, take cognizance of an interest adjustment dating from April 15.
Transfer a sufficient amount from the Wilson Williams Co. account to the Reserve for Doubtful Accounts so that the balance of the latter account will be wiped out. The balance in the Wilson Williams Co. account is to be charged in accordance with the partnership agreement.
Credit the amount received for the use of the delivery truck to Delivery Expense.
The payment made by the railroad company should be credited to Sales Returns and Allowances to offset the debit made previously.
Problems 2 and 3 are, of course, separate problems not to be recorded in the books of Cotten, Wooster & Co.
XII
1. (a) Summarize the subsidiary journals.
(b) Post completely.
(c) Take a trial balance of the general ledger as of May 31.
(d) Prove the subsidiary accounts against their respective
controlling accounts.