Rent: charge ⁴/₅ to Selling, ¹/₅ to General Administrative.
Insurance: charge $335.24 to Selling, $41.75 to General Administrative.
Taxes: charge all of the 1915 taxes ($160.15) Surplus.
Discount on stock: charge to Factory Buildings.
Instructions
Most of the above data are necessarily arbitrary, particularly the basis for distribution of the various expense items. For many such items, even in practice, a more or less arbitrary basis must be adopted. See Chapters III, XIV, and XXVII for a brief discussion of this point.
The student may object to the indicated methods of handling some of the items but is asked to make the record as suggested. Any necessary corrections will be made later.
Draw up all formal statements, for presentation to the instructor, on blank paper, letter size, i.e., 8½ x 11 inches.
XVII
Practice Data