1. SET I (Completed) Make a Statement of Profit and Loss from the trial balance and the inventory of $142.50, given in Chapter VII. 2. 3. 4. Make a Statement of Assets and Liabilities. Close the manuscript ledger, using these statements as guides. After the work has been approved by the teacher: 1. 2. 3. Copy the Statements of Profit and Loss and of Assets and Close the ledger in the blank books. Examine your ledger to see whether it agrees with the SET II (Completed) Make statements of Profit and Loss and of Assets and Liabilities, using the inventory, $275, given in Chapter VII. Close the ledger and make a proof trial balance. Copy everything in the blank books in the same way as in Set I. Oral Exercise. 1. Analyze the journal and cash book entries of Set II. Apply the rule of Debits and Credits, and give a reason for the debit and the credit of each entry. 2. Analyze the ledger of Set II by giving the reason for the debits and credits of each account and by explaining what the difference of each account means. Special Instructions to the Student. You have now completed the necessary steps in entering the transactions, proving the work, finding out the condition of the business, and proving up the ledger after closing. This has been done with Sets I and II. You should now understand the routine work of each of these months, how each step is taken, and why.. You should be able to rule paper for any of the books you have used. You should be able to balance a cash book and to close any ledger account properly without having a model before you. Can you analyze any entry and any account that you have had? Your ability to do this and to think out new transactions will to a large extent determine your progress. Accuracy. You have learned by this time that to hurry the work usually means a lack of accuracy. You must take time to do the work accurately. Inaccurate, careless figures, poor form, and hurried computations mean a lack of accuracy. Careful work when making the entries and posting will save much of the time that otherwise would have to be devoted to finding mistakes. Neatness. All papers that you make out should be the very best you can do. Your penmanship should be written in a good business style that is free from flourishes. Your writing must not be too large, as many books and forms have narrow rulings. You should be extremely particular about your figures. Never join them together. No word or figure written in ink should ever be marked over or erased. A red line should be drawn through the incorrect word or figure and the correct word or figure written above in black ink. Books of entry often become valueless as a means of proving an account, in case of a dispute between the parties, because they are poorly kept. Careless corrections and lack of neatness may result in the refusal of a court to allow the books to be used as evidence. The cultivation of habits of accuracy and neatness will be of great value to you in business life. SET III. RETAIL FLOUR AND FEED a) Enter the following transactions in the books of entry, or if the teacher desires, they may be entered on loose sheets of paper and afterwards copied in the books. March 1. 2. C. S. Morton began the Flour and Feed business by investing cash, $2500. Paid rent of store for one month, $40. 3. Bought of the City Flour Co., for cash: 4. Bought of the Valley Mills, on account: 5. Sold G. C. Grace, on account: 15 bbl. Lily Flour at $4.90 300 lb. Corn Meal at $1.85 per hundred Have you extended the amount of each item? 6. Cash sales for the week, $37.35. 8. 9. Paid an advertising bill in cash, $18.75. Bought of the Wright Grain Co., on account: 1000 bu. White Oats at 37¢ 10. Sold B. C. Yoder, on account: 11. 12. 13. 13. 15. 15. 16. 17. 18. 19. 20. 20. 22. 22. 23. 24. 25. 26. 27. 29. 30. 500 lb. Bran at $3.25 per hundred 100 bu. Yellow Corn at 78¢ Sold F. C. Winter, on account, 10 days: 25 bbl. Lily Flour at $4.95 Paid Lowe Print Co. $13.75 for printing bills and letter heads. Cash sales for the week, $62.60. Paid the Valley Mills Co. $75, on account. Received of G. C. Grace cash on account, $50. Bought of the Western Coal Co. for cash: 4 tons coal at $5.40 Bought of the Badger Flour Co., on account: Sold G. C. Grace, on account: 50 bu. Wheat at 97¢ 200 bu. Yellow Corn at 76¢ 25 sacks Whole Wheat Flour at 48¢ Paid the Valley Mills Co. the balance due them, $44. 75 bbl. Lily Flour at $4.25 500 lb. Corn Meal at $1.55 Cash sales for the week, $76.15. B. C. Yoder paid $75, on account. F. C. Winter paid for his invoice of the 11th, $123.75. Sold F. C. Winter, on account, 30 days: 30 bbl. Lily Flour at $5.05 300 lb. Corn Meal at $1.90 Bought of the Valley Mills Co., on account: G. C. Grace paid $125, on account. Cash sales for the week, $87.45. Sold G. C. Grace, on account: 1000 lb. Bran at $3.35 100 sacks Whole Wheat Flour at 45¢ The proprietor withdrew $60 from the business. 31. Cash sales for two days, $31.95. 31. Paid clerk's salary in cash, $32. 31. Paid Badger Fuel Co. $32.75 for making deliveries. b) Post to the ledger. c) Take a Trial Balance of differences. d) Make Statements of Profit and Loss and of Assets and Liabilities, using the following inventories: Merchandise, per schedule on file, $998.25 Expense, 2 tons coal at $5.40, $10.80 What effect will the inventory of $10.80 have on the loss in Expense? Why? What effect will it have on the assets of the business? Does the Expense inventory make the net worth of the business greater or less? Why? e) Close the accounts in the ledger in the following order: 6. Personal Accounts, except the following: Wright Grain Co.'s account Moore Flour Co.'s account f) Make a Proof Trial Balance. Exercise 14. From the following Trial Balance and inventory, make a Six-Column Statement: Exercise 15. From the following Trial Balance and inventories, make Statements of Profit and Loss and of Assets and Liabilities. |