The cash item should also appear on the left side of the cashbook as follows: July 1 J. W. D. Fain Cash invested 2500 The cash item is checked C. B. in the journal because it has been placed to the debit of the Cash account by the above record. W. D. Fain's account is checked J. in the cashbook because this item has been counted in determining the total resources and liabilities in the journal. On a sheet of journal paper, or on paper ruled in journal form, make entries for the following: b. Chas. R. Osgood began the Furniture business July 1, with the following resources and liabilities: Cash in drawer, $1700 Chas. R. Dean's note, $500 Interest accrued on the above note, $10 He owed the following on account : Foster, Hills & Co., $250 Traver, Bowe & Co., $300 His note in favor of M. B. Hanway, $600 c. C. B. Ellis began business July 1, with the following resources and liabilities: Cash in drawer, $2000 Merchandise, per inventory, $1300 F. M. Everett's note, $1200 Interest accrued on the above note, $19.50 City Water Works stock, $4200 Dividend on above, earned but unpaid, $168 House and lot, 1625 Main Street, $4500 Rent due from tenants, $95 Horse and wagon, $150 He owes Manning & Son on account, $1750 His note in favor of C. O. Bond, $1200 He owes Ellis B. Hanway, on horse and wagon, $75 d. Howard A. Johnson began business July 1, with the following resources and liabilities: Cash in drawer, $1750 Cash on deposit in The Union Bank, $1278.50 He held notes against the following: A. S. Coleman, $450; interest accrued, $8.75 His note in favor of W. A. Brown, $516.50 He owed the following on account: Samuel B. Lewis, $265 French & Co., $376.40 e. John D. Rowland began business July 1, with the following resources and liabilities: Cash in drawer, $975 Cash on deposit in First National Bank, $1845.50 Office fixtures valued at $180 A horse and wagon valued at $280 Merchandise, per inventory, $3246.50 Real estate valued at $1800 20 shares of A. & S. Ry. stock at 96 per share His note in favor of Frank Lee, $437.50 Interest accrued on the above note for 60 da. He owed Lake & Son on account, $275 Lacey & Co. owed him on account, $256.75 H. S. Chapin's note, $375 Discount on the above note to maturity, 30 da. f. Henry MacLane began business July 1, with the following resources and liabilities: Cash on deposit in The Union Bank, $2356.70 Real estate valued at $3450 His note in favor of Henry R. Lete, $356.25 Ralston & Cooper's note, $350 Interest accrued on the above note for 48 da. A horse and wagon valued at $250 He owed Curtis & Co., on account, $267.40 Peterson & Co. owed him, on account, $237.50 SET V. JOBBING FURNITURE BUSINESS Object. This set is designed to illustrate the Jobbing Furniture business. A variety of advanced business forms is illustrated and explained, and two new books of record are used. The transactions. deal largely with commercial paper, and the actual handling of money is avoided as far as possible. Notes, drafts, and acceptances, and the relations existing between the parties connected therewith, are made a prominent feature of the work. Books Used. In addition to the books with which the student is already familiar, the bill book and the invoice book are introduced. Bill Book. This book is used for recording all notes or acceptances which are received by the business, or which are issued by the business. It is generally divided into two parts, one for bills receivable and the other for bills payable. When notes or acceptances are received or issued, a full description of the paper should be recorded in the bill book. This book should exhibit the same balances as the Bills Receivable and the Bills Payable accounts in the ledger. The Model Bill Book given below is self-explanatory. Care should be taken to record in the proper columns the information called for. Complete records for the first three bills receivable and bills payable for the month of July are properly entered in this model. NOTE. The amounts in the model bill book are for price list No. 1. |