Trial Balances, June 30, 1918
| Branch A | Branch B | |||
| Cash | $3,000.00 | $ 1,000.00 | ||
| Notes and Accounts Receivable | 70,000.00 | 50,000.00 | ||
| Salaries | 15,000.00 | 5,000.00 | ||
| Rent | 2,700.00 | 1,500.00 | ||
| Other Expenses | 10,000.00 | 7,000.00 | ||
| Sales | $ 75,000.00 | $ 48,500.00 | ||
| Sundry Accounts Payable | 5,000.00 | 7,200.00 | ||
| Purchases from Head Office | 70,000.00 | 50,000.00 | ||
| Head Office Merchandise | 70,000.00 | 50,000.00 | ||
| Head Office General | 20,700.00 | 8,800.00 | ||
| $170,700.00 | $170,700.00 | $114,500.00 | $114,500.00 | |
Inventories, at billed price: Branch A $10,000, Branch B $5,000.
Create on the branch books reserves for doubtful accounts of 1% of the sales at each branch.
Head Office
| Plant and Equipment | $250,000.00 | |
| Depreciation Reserve Plant and Equipment | $50,000.00 | |
| Cash | 25,000.00 | |
| Notes and Accounts Receivable | 100,000.00 | |
| Reserve for Doubtful Accounts | 5,000.00 | |
| Merchandise Inventory, June 30, 1917 | 27,500.00 | |
| Notes and Accounts Payable | 45,000.00 | |
| Purchases | 170,000.00 | |
| Sundry Expenses | 35,250.00 | |
| Depreciation | 12,500.00 | |
| Bad Debts | 1,125.00 | |
| Sales | 225,000.00 | |
| Sales to Branches | 120,000.00 | |
| Branch A, Merchandise | 70,000.00 | |
| Branch B, Merchandise | 50,000.00 | |
| Branch A, General | 20,700.00 | |
| Branch B, General | 8,800.00 | |
| Capital Stock | 250,000.00 | |
| Surplus | 75,875.00 | |
| $770,875.00 | $770,875.00 | |
| Head office inventory, $30,000. | ||
| Goods were billed to the branches at 150% of cost. | ||
XXI
A New York company doing business in London, received the following trial balance from its London office at the end of a fiscal year:
Trial Balance—London Office
| Plant | £100,000 | |
| Accounts Receivable | 75,000 | |
| Accounts Payable | £35,000 | |
| Expenses | 10,000 | |
| Income | 100,000 | |
| Merchandise | 20,000 | |
| New York Office Account | 135,000 | |
| Remittance Account | 60,000 | |
| Cash | 5,000 | |
| £270,000 | £270,000 |