| Receipts | ||
| Bills Receivable (outstanding January 1, 1918) | $ 15,000.00 | |
| Accounts Receivable (outstanding January 1, 1918) | 106,500.00 | |
| Cash Sales | 5,435.00 | |
| Bills Receivable (contracted during year 1918) | 13,500.00 | |
| Accounts Receivable (contracted during year 1918) | 212,000.00 | |
| Total Receipts | $352,435.00 | |
| Payments | ||
| Bills Payable | $ 25,000.00 | |
| Accounts Payable | 35,000.00 | |
| Interest on Mortgage (one year at 5%) | 5,000.00 | |
| Taxes for the year 1917 | 865.00 | |
| Purchases of Materials and Supplies | 98,000.00 | |
| Labor | 135,000.00 | |
| General Expenses | 45,000.00 | |
| Interest on Bills Payable (to September 30, 1918, at 5%) | 2,800.00 | |
| Total Payments | $346,665.00 | |
Other transactions were as follows:
| Sales on Credit | $335,000.00 | |
| Bad Debts Written Off: | ||
| Accounts prior to January 1, 1918 | $8,000.00 | |
| Accounts subsequent to January 1, 1918 | 2,000.00 | 10,000.00 |
| Discounts and Allowances to Customers: | ||
| Accounts prior to January 1, 1918 | $500.00 | |
| Accounts subsequent to January 1, 1918 | 300.00 | 800.00 |
| Notes Received from Customers | 20,000.00 | |
| Notes Given to Creditors ($110,000 being renewals) | 180,000.00 | |
| Inventory of Materials and Supplies, | ||
| December 31, 1918, amounted to | 92,000.00 |
The trust terminated at the end of the year and the business was turned back to the owners.
Prepare realization and liquidation account; also a balance sheet showing the financial condition of the business at the termination of the trust. Accrued taxes for the year in the usual manner, i.e., on the basis of the charge for previous year.
Branches
25. The trial balance of Jones & Smith, Chicago branch, shows December 31, 1918, the following:
| Home Office | $2,000.00 | |
| Due from Customers | $2,500.00 | |
| Cash on Hand | 1,000.00 | |
| Expenses | 1,900.00 | |
| Merchandise | 3,400.00 | |
| $5,400.00 | $5,400.00 |
Inventory $1,000.
Draft the necessary journal entries to close the accounts on the branch books, and the entries to be made in the home office to make the books agree.