| Sales to customers | $800.00 | |||
| Expenses paid by him: | ||||
| Freight and drayage | $58.22 | |||
| Insurance | 12.54 | |||
A formal account sales will not be rendered till completion of sales of entire consignment. The quantities of unsold articles reported showed, upon pricing, a valuation of $600. Word was also received that a check for the amount due on sales as above would follow immediately after certification by the bank. It was decided to defer one-half of the above expenses reported by the consignee as applicable to the remainder of the consignment.
The Board of Directors declared the regular semiannual dividend of 4% on the preferred stock, payable January 25, and a 4% dividend on the common stock, also payable January 25.
Analysis, based on vouchers and invoices, showed the following content of the Sales General Expense account before adjustment:
| Garage rent | $1,800.00 |
| Chauffeurs’ wages | 8,969.34 |
| Shipping clerks’ wages | 2,775.13 |
| Gasoline and oil | 2,491.68 |
| Licenses, Trucks | 96.00 |
| Repairs | 895.46 |
| Stationery, supplies, and postage | 1,237.29 |
| Tires and tubes | 714.78 |
| Crates, boxes, and shipping supplies | 1,374.30 |
| Light and heat | 3,775.37 |
| Carpets and labor for showroom | 1,037.80 |
| Sundries | 330.80 |
| Profit on sale of old storage and | |
| warehouse furniture and fixtures | 200.00 |
| Renting of truck | 100.00 |
Likewise, a similar analysis of the General Expense account before adjustment showed the following distribution:
| Cleaners’ and watchman’s wages | $4,369.75 |
| Repairs to buildings | 2,174.65 |
| Changes in partitions | 1,215.79 |
| Auditor’s fees | 1,500.00 |
| Legal fees | 2,500.00 |
| Contributions | 1,000.00 |
| Light and heat | 1,869.43 |
| Merchants’ Association dues | 100.00 |
| Sundries | 824.08 |
Instructions
Refer to [Chapter XLVIII] of the text as to consignments. In this case make use of the Consignment Accounts Receivable account for recording the claim against the consignee, and be careful to charge the proper amount of expenses against the income to be taken into the earnings for this period. Handle the deferred expense items on the consignments in the Out-Freight account. Do not forget to adjust the memorandum accounts so that they will show the value of goods still out on consignment, and take the latter amount into consideration when setting up the final inventories on the books.
XXIV