Additional data on the mortgage transaction are given under “Cash Disbursements.” In the general journal entry make explanation of the entire transaction, including the cash portion, which will of course be entered formally only in the cash book. In the cash book entry, by way of explanation, give cross-reference to the general journal explanation.
XIV
Summarize the subsidiary journals.
Post completely.
Take a trial balance of the general ledger as of June 30.
Prove the totals of the subsidiary accounts against their respective controlling accounts.
XV
Prepare a work sheet, as of June 30, 19—, for the six months, taking account of the following adjustments and inventories. Follow carefully the form shown in [Chapter XXVII].
- Accrued Expenses:
- Salesmen’s salaries $485.
- Shipping clerks’ and chauffeurs’ wages $265.
- Unpaid garage bills $182.50.
- Freight bills $55.60.
- Office salaries $287.50.
- Lighting expense estimate $25.
- Watchman’s and cleaners’ wages $106.
- Taxes $300.
- Prepaid Expenses:
- Advertising $3,000.
- Rent $1,250.
- Insurance $790.
- Merchants’ Association dues $50.
- Interest on note payable to the order of the
- Associated Dry Goods Co. $57.21.
- Interest on the note due the Merchants’ National Bank $12.50.
- Accrued Income:
- Interest on Liberty bonds $47.50.
- Interest on the note of Charles L. Sutton & Co. $46.67.
- Word has been received from the attorneys that the note of
- the Silk & Dress Goods Exchange, which had been extended
- and not paid when presented, will be met in full with
- accrued interest of $42.84.
- Out-freight for June, $169.70.
- Charge depreciation as follows: 10% per annum on office and store
- furniture and fixtures; 20% per annum on delivery equipment.
- Create a reserve for bad debts equal to ½ % of gross sales.
- Inventories were: merchandise $102,560;
- office supplies $257.80; shipping supplies $387.60.
- Charge and credit the partners with interest as per the
- partnership agreement.
Instructions