Exercise 53. On June 8, there was a cash shortage of $40. On June 12, it was found that the proprietor had withdrawn $40 and made no record of it. Make the necessary entries for both dates. Exercise 54. On June 15, there was cash "over" amounting to $37.85. On June 18, it was found that cash received from C. D.. Walters was entered as $375.50 instead of $395.50. Also a cash sale to J. A. Wood for $17.85 was not entered at all. Make the necessary entries for both dates. Exercise 55. M. I. Kerr owes you $324.75. He has been declared a bankrupt and his receiver sends you a check for 60¢ on the dollar. Make the necessary entries. Exercise 56. March 8. March 8. You drew a draft on P. L. Worden in favor of M. A. Kane, for $200, and sent it to M. A. Kane to apply on account. It is now returned to you dishonored. Make the necessary entry now if an entry was made when the draft was drawn. Exercise 57. a) After closing the books, it was found that the merchandise inventory had been computed $100 less than it should have been. b) After closing the books, it was found that there was unexpired insurance that had not been entered, amounting to $50. Make the entries to adjust these mistakes. Exercise 58. A fire occurred in the building occupied by the Chase Mfg. Co. Merchandise worth $7845.60 was partly destroyed, the furniture and fixtures were damaged to the amount of $186.50, and the building was damaged to the amount of $4500. Merchandise that was salable was sold for $243.75. The following was received from the insurance companies: for merchandise, $6875.80; for furniture and fixtures, $156.75; and for the loss to the building, $4500. There was unexpired insurance on the books of $167.80, all of which, except $23.50, is a loss. Make the entries to adjust this. Exercise 59. C. Jones, D. Kreeger, and G. Hinton formed а copartnership on June 1, with investments as follows: C. Jones, $10000; D. Kreeger, $7500; and G. Hinton, $6000. It is agreed It is agreed that the partners shall share profits and losses equally, and that 6% interest is to be allowed on all investments and on all withdrawals of capital. On July 15, G. Hinton invested $2000 additional. On August 20, C. Jones withdrew $3000 and on October 10, D. Kreeger withdrew $500. Adjust interest at 6% on December 31. Use exact days in computing the time. Make the entry to adjust the interest. Exercise 60. In the partnership of Dillon & Foster, the partners share profits and losses equally and interest is to be adjusted December 31 at 6%. The capital accounts show the following: J. Dillon invested $5000 on January 1 and $2000 on May 15. He withdrew $1000 on July 10 and $500 on September 15. F. E. Foster invested $4000 on January 1 and $2500 on March 8. He withdrew $500 on July 10 and $1200 on October 20. Adjust the interest on December 31. Use exact days in computing the time. Make the entry to adjust the interest. CLOSING WORK, SET VII, OCTOBER (Concluded) Trading and Profit & Loss Statements for the month ending Oct. 31, 19— 10. Use the fol Make Trading and Profit and Loss statements. lowing inventories and other information not found in the books: 12. After these statements have been approved by your teacher, copy them in your blanks. Leave spaces for distribution and proof. 13. Close the accounts of the general ledger, except the Capital and Personal accounts of the partners. In closing the Profit and Loss account, write the words Net Profit in red ink and bring the amount below the line in black ink. This is necessary because part of the profit must first be distributed as interest before it can be divided equally. 14. Adjust interest between partners. To do this, use both the capital and the personal accounts of the partners. Find the amount due each partner according to the method given in this Chapter. Make the necessary entry to transfer the amount due each partner to his personal account. 15. a) Close the Profit and Loss account in the usual way after you have posted the entry to it for the adjustment of interest. b) Close each partner's personal account into his capital account. c) Close each partner's capital account. 16. Make a proof trial balance. 17. Submit all of your books to your teacher for correction. Exercise 61. From the following trial balance and inventories, make Trading and Profit and Loss statements and statement of Assets and Liabilities for the month ending June 30, 19. The partners share gains and losses equally. |