IX
Practice Data
The directors plan to keep sufficient funds on hand to take advantage of all discounts offered on purchases. All invoices will therefore be entered “net” in the Vouchers Payable column of the voucher register. Extension will be “gross,” however. Postings to Purchase Discount account will be made from the voucher register. Purchase Discount column in the cash book will be used as a memo column of discounts actually taken. The difference between the totals of the purchase Discount columns in voucher register and cash book at the end of a month (or other posting period) shows the amount of unearned discount on that date. This should always be checked against the discounts entered in detail in the voucher register, for the unpaid vouchers as shown in Unpaid Vouchers column of the register. (Figures at beginning of paragraphs signify October dates.)
October 1. Delivery of the voucher register having been made, your accountant closes the purchase ledger and opens the voucher register, transferring the balances thereto. The Kistler Stationery Co. presented their bill for $150 ($95.50 for stock books, records, etc., and $54.50 for stationery and printing). Paid New York Novelty Works $15 for corporate seal. Paid Northwestern Fire Insurance Co. $125 for 1-year policy on stock of goods.
3. Sold Jno. Bach & Sons at 2/10, n/30, desks $1,755, bookcases and filing cabinets $658.90, office supplies $140. In order to raise money for the purpose of building and equipping the Knoxfraud factory, the board of directors authorized the sale of the rest of the unsubscribed stock at not less than 95. Accordingly subscriptions were received from A. J. Scobey for 90 shares at 96, from A. K. Ladd for 125 shares at 95, and from J. B. Gaynor for 60 shares at 97. One-half is received in cash, the rest due on October 25. Certificates of stock are issued the new stockholders.
4. Smith Brooks Stationery Co. paid their bill of September 27, $2,525 less $50.50 discount.
5. The bank notified you John Bach & Son’s note for $250, dated July 3, for 3 months at 6% and under discount with them since August 16, has gone to protest; you took up the note, drawing your check in favor of the Drew National Bank for $256.25 including protest fees, and notified John Bach & Sons. Paid R. M. Goddard Furniture Co. bill of September 6, $9,940.10 less $99.40 discount.
6. Bought of Jackson City Supply Co. at 1/30, n/60, office supplies $3,028.95. Sold T. C. Macie & Co. at 2/5, 1/10, desks $1,685, bookcases $642, office supplies $156. Paid Hoboken Electric Co. light and power bill for September, $50 ($30 was for sign display).
7. The bids for the construction of the factory were opened and all found to exceed the architect’s estimate by $10,000 or more. It was accordingly decided to reject all bids and construct the factory upon their own responsibility, retaining I. M. Builder as supervising architect and appointing J. T. Noble as purchasing agent and general superintendent during construction. All funds from the sale of stock were ordered placed under a Building Fund account in the Drew National, subject to drawing by Hansen in payment of all bills when passed for payment by Edwards and Noble. The transfer of funds was accordingly made. Alexander Jacobs returned desks and tables $465.85 of their purchase of September 18. Brush Co. paid their bill of September 30, $2,539.65 less $50.79 discount. C. F. Hoeckle Office Supply Co. paid their bill of September 6, $2,376.24.
8. Drew check for $500, advances to salesmen, which the bookkeeper charged to an account entitled Salesmen’s Advances opened in the customers’ ledger. Paid N. G. Goodman, accountant, $250 for services, in connection with installation of the system of accounts.