April 20. Charge these two items as cash expenditures to Strike Costs. In accounting for the fire losses, clear the accounts of their original values by transfer to Fire Loss account (Raw Materials Purchases $5,000, and Machinery $3,500 less depreciation for 4⅔ months, i.e., from November 30 to April 20). Credit Fire Loss from the cash book with the insurance received and with the cash received from sale of scrap. Charge Fire Loss also with the canceled insurance premiums. Record all of this under date of April 20. (The student is referred to [Chapter XXXII] for a full treatment of fire loss adjustments.)
Indirect losses due to strike must not be brought onto the books.
No sinking fund entries will be made till the close of the fiscal year.
May 1. Handle the sale of bonds in cash book and general journal.
Treat the note received as a “Note Receivable Special.” No record will be made of the unissued bonds.
XXI
Practice Data
The remaining data for the 16 months ending December 31, 1917, have been summarized in most instances and were as follows: (In making record, use the dates given or December 31, where none are given.)
June 1. A dynamo costing $525 on August 31, 1916, was sold for $415 and a larger one purchased from the General Electric Co. at a cost of $975.50 installed. (Take into account depreciation at 12½% per annum.) Additional motor trucks were purchased from the New Model Truck Co. for $1,790. (Entry was made at $1,740, taking into account a special discount of $50 for payment within 10 days. Through oversight the voucher was not paid till July 1, thus losing the discount.)
June 25. Call No. 2 was made for the balance of unpaid subscriptions to capital stock.