| Account | Distribution |
| Buildings Expenses | Selling ¼; Office ⅛; Factory ⅝. |
| Furniture & Fixtures Expense | Selling ¼; Office ⅛; Factory ⅝. |
| Light, Heat, and Power. | Selling $842.90; Office $392; Factory $5,912.20. |
| Freight Inward | Materials ¾; Bags ¼. |
| Taxes | Building and Equipment $1,300; |
| Employees’ Houses $220. |
The Suspense account was credited for $370 received from a former customer in payment of an old account which had been charged off as uncollectible some years ago.
In many cases notes payable have been issued with interest included in the face of the notes. Of this interest $290 is applicable to the succeeding period.
Provision for contingent royalties was begun two years ago in anticipation of an unfavorable decision in an action brought against us for infringement of patents. Recently the action was decided in our favor.
Legal expenses of $1,500 for prosecution of infringements of patents had been charged against profits at the close of the previous year. Of the present legal expenses, $100 was paid for services in protecting patents.
Inventories as at December 31, 1918:
| Wrapping and Crating Supplies Unused | $ 387.50 |
| Factory Supplies on Hand | 718.50 |
| Pamphlets, Price Lists, and Posters on Hand | 450.00 |
| Workmen’s Compensation Insurance Prepaid | 160.00 |
| Bags in Stock | 12,542.00 |
| Trunks in Stock | 28,050.00 |
| Raw Materials | 8,000.00 |
| Trunks in Process as under: | |
| materials | $6,497.10 |
| direct labor | $2,680.40 |
| manufacturing expense | $976.50 |
Fire Loss was debited for $6,000 which represents damage to buildings of $4,000 and loss of machinery of $2,000 after making due allowance for depreciation. Just after the trial balance was made a check for $5,400 was received from the insurance company in full settlement of our claims for fire damage.
The Repairs to Buildings account contains $3,500 of charges for replacing the parts destroyed by fire.
Provision for reserve for depreciation is to be made on a straight line basis, at the following yearly rate: buildings 5%; machinery 10%; delivery equipment 12%; furniture and fixtures 12%.