The items shown on the bank statement but not yet entered in the cash book are to be entered there before summarizing the cash book. [See page 562] for instructions as to its summary.
For summarizing the other journals follow the explanations given in [Chapter XXXI].
XXII
Post completely.
Take a trial balance of the general ledger, recording it on a double sheet of journal paper. When posting customers’ and creditors’ accounts, make sure that the corresponding controlling accounts will receive, either in totals or in items, the same amounts.
Prove your sales and purchase ledgers and record the proof with the general ledger trial balance, i.e., make a list or schedule of the accounts and show the list totals as agreeing with their respective controlling account balances in the general ledger trial balance.
XXIII
Prepare a work sheet for the year ending December 31, 19—, taking the following adjustments into consideration:
- Accrued Expenses:
- Salesmen’s salaries $385.
- General Salaries $416.90.
- Amount due on repairs to building $500.
- Mortgage interest $1,050.
- Interest on notes: Library Bureau note $12.50;
- Apex Office
- Supply Co. note $5.92;
- Dictation Devices Co. note $5.
- Accrued freight bills $824.34.
- Accrued taxes $378.
- Chauffeurs’ wages $160.60.
- Garage bills $216 ($100 for gasoline and balance for repairs).
- Automobile tire $90.
- Prepaid Expenses:
- Interest on note discounted at the Harding National Bank $44.17.
- Advertising $2,000. Insurance $2,867.90.
- Prepaid dues to Merchants’ Association $50.
- Accrued Income:
- Interest on following notes: notes receivable special $8.75;
- Hall, Walter & Co. $3.77;
- Browne Morse Co. $3.73;
- Standard Truck Co. $1.46.
- Bank interest on inactive deposit with Coolidge State Bank $24.36.
- Upon analysis, $387.86 of the freight bills was found to be
- out-freight.
- Take into account depreciation at the yearly rates of: 3%
- on buildings; 20% on delivery equipment; 10% on office
- furniture and fixtures.
- No depreciation is to be charged on the store and warehouse
- furniture and fixtures just installed.
- Create a reserve for doubtful accounts equal to 1/2% of net sales.
- Inventories showed the following on hand:
- Department A $79,897.80;
- Department B $51,764.32;
- office supplies $296.45.
- In-freight was apportioned between the departments on the
- basis of net purchases.
- Charge 90% of insurance expense to selling expenses.
In answer to our request, G. A. Roberts submitted the following information regarding his consignment: