This set contains material for the student’s practice work in keeping the records of a corporation engaged in trading and manufacture. Two blank books will be used for the record. Of the “Journals,” pages 1-32 comprise the general journal; pages 34-44 the cash book; pages 45-48, the sales journal; page 49 the sales returns and allowances journal; page 51 the purchase journal (to be used for the month of September only); and pages 54-57 the voucher register (to be used after the purchase journal is discontinued). Pages 58-60 are to be used for the record of continuous trial balances. Of the “Ledger” blank, pages 1-44 comprise the general ledger; pages 45-51 the sales ledger; and pages 52-56 the purchase ledger. Column headings for the different journals are given in the blanks.

It is expected that the student has already acquired correct habits of the daily posting of customers’ and creditors’ accounts. In addition to a training in some peculiarities of manufacturing accounts, the purpose of the course is to give the student practice in handling some of the larger problems of accounting which are not of daily occurrence. For the first few assignments considerable detail is given to provide a necessary minimum of practice in the summarization and posting of the different books of original entry. After this the ordinary transactions are given in condensed form to save unnecessary repetition and burdening the student. In the use of the analytical general journal, the student must be very careful to make entries in the proper column, as otherwise trouble will be experienced with the controlling accounts. (See Volume I, pages 410, 430, and 431.)

Open the following accounts in the various ledgers as indicated. The numeral preceding the account title indicates the ledger folio on which the particular account is to be opened.

General Ledger—Give one-third page to each account except Notes Receivable, Trade Debtors, Merchandise Inventory, Notes Payable, Vouchers Payable, and Subscribers, for each of which allow 4 additional lines, shortening the allowance for the account next following in each case.

The column headings for the different books are given in the blanks with a few exceptions. The fourth columns of the sales and sales returns and allowances journals are left blank. The student should write in here “Sundry Office Supplies.” This will be used till October 31, 1916, at which time it will be necessary to write in its place, “Knoxfrauds.” The heading for voucher register, column No. 5, which is left blank, must be written in as above, “Sundry Office Supplies Purchases,” for use until October 31, when “Raw Materials Purchases” will be substituted.

Messrs. Stanley Jackson, J. T. Edwards, and P. Hansen, on September 1, 1915, made application as incorporators to the Secretary of State for a certificate of incorporation authorizing the Acme Office Furnishings Co. to transact a general business of all kinds in trading, manufacturing, and printing, as principals or as agents, to acquire and trade in real estate, patents, trade-marks, licenses, and the like, and to act as promotion and financial agents. The customary certifications were made, the organization tax of $50 was paid, and the certificate duly issued. The authorized capital stock was $100,000, divided into 1,000 shares of common stock only, of par value $100 each. Subscriptions at par to capital stock had been made as follows:

Stanley Jackson225 shares
J. T. Edwards162”
P. Hansen113”
T. J. Noble100”
A. H. Lawrence75”
H. C. McCullough  50”

At the first meeting of the incorporators and subscribers, after the adoption of a set of by-laws and organization thereunder, a proposal of sale made by the Jackson, Edwards, Hansen firm of their business and good-will at a stated figure of $50,120.97 was referred to the board of directors for their consideration and investigation, with authority to act. After looking over the properties, all of which it was found would be advantageous to the company, the proposal was accepted and transfer was made. A committee from the board was appointed to make a careful appraisal of the purchased properties and report as soon as possible. Accordingly, on September 15, the following report of valuation was made and accepted and authority given for the opening up of a set of accounting records with the stated values of the properties. The services of a public accountant were secured to plan and install a system that would meet the needs of the proposed business and to open the books.

The properties acquired were: cash $5,269.14; accounts receivable, as per schedule following, $10,125.61; notes receivable $1,250; desks and tables inventory $15,694; bookcases and filing cabinets inventory $18,392; sundry office supplies inventory $8,196.27; rent prepaid $125; insurance unexpired $95.36; delivery equipment $492.50; store furniture and fixtures $526; office furniture and fixtures $274; good-will $4,500.