OFFICE PRACTICE AND BUSINESS PROCEDURE By FLORENCE E. McGILL, B.A., B.C.S. JULIA RICHMAX HIGH SCHOOL THE CITY OF NEW YORK THE GREGG PUBLISHING COMPANY NEW YORK CHICAGO BOSTON SAN FRANCISCO LONDON COPYRIGHT, 1922, BY THE GREGG PUBLISHING COMPANY 5S-F-3 Printed in the United States of America PREFACE THIS book is an elementary treatise on office practice and business procedure. It is designed as an introductory text- book for immature students who are unacquainted with the organization and management of large business houses. Simple in style, it will enable the student to acquaint himself with the best methods of handling business and commercial papers and office appliances. The aim is, to give a regular business office training by presenting practical problems in the classroom such as a junior clerk will be expected to understand. In a business office an employee is not only required to understand the theory of his assigned tasks, but he must know how to work out that theory in practice. If he knew all the necessary requirements for filing a letter and had never actually filed a letter in a folder in a drawer of a filing cabinet, his theo- retical knowledge of filing would be of little value to him in business. Students using this book become acquainted with the dif- ferent features of office routine. In other words, they are continually in a "business atmosphere." The efficient office assistant must be thoroughly equipped with a knowledge of the "machinery" of a modern business office. When he ac- cepts his first business position he must be confident of his ability to perform the assigned task in an intelligent and effi- cient manner without supervision. In the opinion of the author the ideal method is to "learn to do by doing." The plan of organizing the class into an office force gives the stu- dent an opportunity to acquaint himself with modern business requirements and, as far as possible, to get his practice in a real business atmosphere. 5026G6 PREFACE The book is graded to meet the needs of students in the junior high school and in the first, second, and third terms of the senior high school. Every assignment contained in this book has been worked out in practical form by students in the Julia Richman High School, the City of New York, in regular class recitations. Grateful acknowledgments are made to the many teachers and members of business houses who have made this work possible. The author desires to mention Dr. John T. Nichol- son, District Superintendent of Schools, and Dr. Albert G. Belding, Director of Commercial Subjects in High Schools, the City of New York; Mr. Thaddeus Wilkerson of the Burroughs Adding Machine Company; Miss Mary F. Cahill, Miss Sadie Krupp, Miss Anna Hamill, and Miss Elizabeth F. Duffy of the Julia Richman High School; and, especially, to acknowl- edge her indebtedness to Dr. Michael H. Lucey, Principal of the Julia Richman High School. The author and publisher are indebted to the Remington Typewriter Company, the Dalton Adding and Calculating Machine Sales Company, the Library Bureau, the Yawman and Erbe Mfg. Co., the Wales Adding Machine Company, the A. B. Dick Company, the National Blank Book Com- pany, the Postage Meter Company and the New York Tele- phone Company for supplying illustrative material. CONTENTS CHAPTER ONE PAGE Introduction I CHAPTER TWO RAPID CALCULATION AND COMMERCIAL MATHEMATICS Horizontal and Vertical Addition. Group Method of Vertical Addition. Proof of Addition. " Casting Out 9'$." Multiplication. Interest 7 CHAPTER THREE CORRELATION OF MERCANTILE ACCOUNTS WITH OFFICE PRACTICE Financial Statements. Information Statement or Financial Statement. Loss and Gain Statement. Balance Sheet. Trans- action. Expense. Business Transactions. Inventory. Dry Goods Invoices ic CHAPTER FOUR BANKING AND BUSINESS PROCEDURE Commercial and Non-Commercial Banks. Savings Banks. Difference Between a Commercial and a Savings Bank. Difference Between a Bank Note and a Bank Check. Federal Reserve Banks. Postal Savings System. Loan and Trust Companies. The Numer- ical Transit System. The Clearing House. Checks. Stop Pay- ment on Checks. Indorsement of a Check. Certified Checks. How to Make Out a Check and Check Stub. A Promissory Note. Protection of Checks. Exercises. Depositors' Ledger Kept by the Bank. Reconciliation of Bank Balance. The Payroll. Trade Acceptance 61 CONTENTS CHAPTER FIVE SALES AND PURCHASES PAGE Merchandise Sales. Local Map of Your Town or City. Inter- borough Map of the City of New York, Borough of Manhattan. Salesmen's Daily Report to the Home Office While En Route. Daily Sales. Merchandise Purchases 104 CHAPTER SIX THE TELEPHONE How to Use the Telephone. How to Call a Number on the Tele- phone. Important Points Concerning the General Telephone Directory, the Classified: and the Suburban Directory. Special Information Concerning the Use of the New York City Telephone Directory. Reference Books. Who's Who in America. City or Town Directory 115 CHAPTER SEVEN THE TYPEWRITER Position at Machine. How to Begin. W T prds of High Frequency. Capital Letters. Numerals. International Rules for Correcting Copy. Speed Tests. The Mechanical Arrangement of a Busi- ness Letter. The Parts of a Business Letter. Proper Margins Important. Paragraphs Relieve Monotony. How to Make Duplicate or Carbon Copies of Invoices, Bills, or Letters. The Mimeograph. How to Typewrite a Wax Stencil. The Derma- type Stencil. Directions for Cleaning and Filing Dermatype Stencil for Future Use. The Use of the Mimeograph Machine. Sales Letter Advertising Sanitary Drinking Cups 137 CHAPTER EIGHT INDEX AND FILING Indexing. Alphabetizing. Filing. Alphabetic Filing. Numeric Filing. Geographic Filing. Subject or Occupational Filing. The Shannon File. The Loose Sheet System or Flat Box File System. CONTENTS PAGE- The Automatic Index System of Filing. To File Under the Ten Division Automatic System. To File Under the Twenty Division Automatic System. Cross Reference and Follow Up. The Use of Tabs and Signals. Employee's Record Cards. Real Estate. Removal of Material from Files. Copies of Blank Forms. Card Index Filing 183 CHAPTER NINE POST OFFICE AND TELEGRAPH Incoming Mail. Outgoing Mail. Metered Mail. Information from the Postal Laws and Regulations of the United States. Telegrams. Mechanical Devices. The Addressograph 218 CHAPTER TEN THE STORY OF THE ADDING MACHINE Supplementary Exercises for Class Use. Some Uses for Adding and Calculating Machines. The Si-Keyboard Non-Listing, Calcu- lating and Adding Machine. Ten-Key Adding-Calculating Machine. Vertical and Horizontal Adding. Adding Fractions. Common Fractions. Multiplication on the 8i-Key Calculating Machine (Non-Listing). ID-Key Listing Machine. Subtraction on the 8i-Key Machine (Non-Listing). Supplementary Exercises. Bookkeeping- Problems. Listing and Non- Listing Machines. Accounting and Business Practice, First Term. Calculations and Accounts. Telephone Directory. Suburban Telephone Directory. Bullinger's Post Office, Express, and Freight Guide. New York City Directory. Who's Who in America. Blue Book. Roget's Thesaurus. The World Almanac. Vertical File. Incoming Mail. Outgoing Mail. Commercial Abbrevia- tions and General Business Terms 241 OFFICE PRACTICE AND BUSINESS PROCEDURE OFFICE PRACTICE AND BUSINESS PROCEDURE CHAPTER ONE INTRODUCTION As transportation systems, steam and electricity, have im- proved living conditions and as business has progressed from the age of the artisan, working in his home, to that of the large industrial corporations employing, oftentimes, thousands of persons who contribute to the manufacture and output of a product, so commercial activities have also increased. Im- proved conditions of the employee and the adoption of modern methods and appliances in the offices of large business houses have placed business upon a plane of efficiency that was un- dreamed of half a century ago. The introduction of labor-saving machinery and devices has not only raised the standard of in- telligence among office help, but it has, to a large degree, revolu- tionized business methods. Every operation of an employee, whether in bookkeeping, correspondence, or at the cashier's desk, is marked by accuracy and skill. The old-fashioned method of performing every process with pen or pencil is a relic of the past, and clerks today are trained, not to be expert penmen, but to operate the many office appliances that are now in use in nearly every business office. An advanced step in progress was made with the invention of the typewriter which has changed correspondence methods in business offices from the laborious writing by hand to the 2 OFFICE PRACTICE writing machine. This change has necessitated the employment of typists and stenographers. The use of the typewriter has made possible the making of duplicate records, thus preparing the way for the adoption of the modern form of filing. No argument is needed today to convince a business man of the necessity of keeping typed copies of all correspondence. Calculating, billing, and bookkeeping machines have changed conditions from that of the old style bookkeeper, who carried, largely in his mind, the calculations and records of the office. These modern devices enable large institutions and manufactur- ing concerns to handle an enormous volume of accounts. Calcu- lating machines have lessened the physical labor of office em- ployees. These machines always give accurate results with an incredible saving of time. They also furnish prompt and de- pendable information which is available at any time. They eliminate mistakes, erasures, duplications, and omissions. They give administrative and high salaried clerks more time for other important duties. The Filing Department of a modern business systematically preserves all correspondence and copies of business records of all kinds. Today the filing department is on an equal basis with the accounting department. Sales managers and business executives who direct selling campaigns must employ some system of checking the fields covered by members of the sales force. Total returns of sales while en route, are often used for the sake of comparison. Dis- tances from town to town must be known so that railroad fares may be checked up. Usually railroad maps are employed on which routes of railroads connecting towns and interurban trolley systems are indicated. The towns are classified as indus- trial, agricultural, or suburban. The age of the bound book in accounting is slowly giving way to that of the loose-leaf system and filing cards. The courts have passed upon the legality of the loose-leaf system, and it is now accepted as legal evidence in case of litigation. INTRODUCTION 3 The machine written ledger page, the posting of debit and credit items, and the computing of balances automatically, are much more simple than the old-fashioned hand-written ledger page. Stamps may now be affixed to envelopes and the envelopes sealed by means of machines. When a company desires to mail two thousand or more identical pieces of mail a special permit may be obtained from the post office which grants per- mission to send the mail without affixing postage to each in- dividual piece. Large business concerns that send out monthly state- ments and other pieces of mail at first class postage rates, may have a cancelling machine similar to the one used in the post office. When employing this method they use a d'e which contains their permit number and an indicator which automatically records the number of pieces of mailable matter passing through the machine. Business houses are usually divided into several principal departments, such as the administrative, sales, production, accounting, credit and purchasing, the stenographic and typing, and the filing departments. A competent office employee is one who is an expert in his own particular type of work. He knows how to perform the duties required of him and why this should be done. Many of the large corporations maintain schools for the instruction of- new employees. In some companies instructors are en- gaged who give new employees instructions in the routine of the office. These employees are then assigned to practical work. Students should, however, get this sort of training in the classroom before accepting a position, and thereby become accustomed to the "business atmosphere" into which they hope to be employed. Each member of an office practice class must be impressed with the responsibility of accuracy, honesty, and a thorough AISLE AISLE AISLE ss 6 OFFICE PRACTICE understanding of office routine. He must possess a knowledge of correct business English and of business methods, and must have a fund of general information on business subjects. In modern offices flat top desks are generally used, and may be arranged somewhat as shown on pages 4 and .5. This arrangement sustains the interest of the worker in his duties and allows an executive to supervise the entire office. An executive or a clerk should keep his desk neat and orderly. Scattered papers indicate that he has not caught up with the day's work, and can give no thought to problems of tomorrow. A disorderly desk also gives an unbusiness-like impression to a prospective customer who may call for a conference. CHAPTER TWO RAPID CALCULATION AND COMMERCIAL MATHEMATICS EVERY business man finds himself confronted with mathe- matical problems. " Figuring out the way to do it," is a business expression which means that in every move a man makes in the conduct of his business he must deal with quantities and their numerical relations. It is necessary for him to " figure correctly" in order to be successful. The reason many businesses fail is because the owners often rely upon guess work in their estimates. The innumerable mathematical computations common to everyday business may be performed easily and accurately by the use of short methods, and the results may often be obtained without the aid of pen or pencil. Business men require clerks to be skillful in handling numerical computations that will insure rapidity and accuracy. The examples which follow are designed to test the student's skill in calculation. Horizontal and Vertical Addition Add horizontally and vertically the following sales. Find the total sales of each department and the total sales of all depart- ments. SUMMARY OF MONTHLY SALES 1920 Clothing Dress Goods Gloves Hats Total of all Departments Jan Feb.. #16,427.65 14.062. 4S $11,428.50 Q,q8c 6s $2,148. 75 2,r4.2 7O 4,472.60 C.'JQO 6O March April 17,857.60 18,852.60 8,492.90 12,198.50 4,679.50 3I79-30 4552.90 6,563.20 Totals. . . . 7] OFFICE PRACTICE Verify the above by finding results on the adding machine. 1921 Suits and Dresses Silks and Velvets Shoes Jan #4 568 7^2 7 C 4- $97 ? 4.6 6 4 4- $ 7 1 8 4. 6 c 2 = (a) Feb ' T 784 / j 93 8 1 / 3 56 + 9 J T w - 484 7 2 1 / J U T 1 6743 j * . 8 2 \ a / March. . , 3 742 8 5 6 93 + 78 3 42 5 i 4- 34785 .67 = (c) April 487 3 S 2 7i + 7 849 7 3 + 4976 .84 = (d) May.... 7 896 43 i 45 + 98 43 2 4 i 4- 973 .69 = (e) June Q 7 4 829 .16 + 8 c 7 q ^ -5 4^ 2 8 4. Q 7 3 = (0 July . . . J 1 T* 83 496 83 + 2 j / 7 984 . 28 + ^ T* 7 784 58 \* / = (g) (h) + (i) + (j) = (k) NOTE: The sum of (h), (i), and (j) should equal the sum of (a) to (g) the total sales, or (k). Verify all results by adding this problem on the cal- culating machine. Group Method of Vertical Addition EXAMPLE: To illustrate the addition of two columns at once, add 84 the units and tens (23) of the first figures to the 69 tens or (70) of the next figure, and then add the 76 unit figure (6) thus: 23 + 70 + 6 = 99. To this 23 sum add 60 + 9 + 80 + 4 = Total of 252. 252 Using this method, add the following problems: 82 34 78 86 97 56 39 96 28 46 72 84 81 54 78 73 97 39 73 69 87 46 29 43 58 43 78 93 Prove the vertical addition by adding downward. RAPID CALCULATION 9 EXAMPLE: To illustrate the addition of three columns at once, 437 add to 243 the hundreds figure (500) then the 384 units and tens figures as 243+500+97 = 840+400+84 = 297 1324, etc. 726 484 597 243 3168 , Using this method, add the following problems: 567 349 756 973 841 484 284 296 172 476 397 439 493 379 438 232 373 372 246 354 H3 242 156 128 178 488 187 783 376 273 579 365 516 459 292 Following are combinations of units figures that make 10 and 20: 7896467657 2214334131 i 319322 5 6 9 7 8 8 7 6 8 9 5 3 i 2 2 3 4 4 5 3 7 2 6 2 7 9 9 9 7 8 3 9 4 9 3 1 7 8 9 7 6 8 7 6 7 7 4 4 2 4 5 3 5 6 9 7 9 8 9 9 9 9 8 8 4 6 In all cases of counting the following key numbers should be used. On these key numbers the units figure is given. io OFFICE PRACTICE After the units figure io is reached, the tens figure must be added as the units figures simply are repeated. Counting by 2 5 s from 2, the key is units figures 2, 4, 6, 8, io, thus, in count- ing by 2's beginning with 2 to 100, we have: 2 12 22 32 42 52 62 72 82 92 102 4 14 24 34 44 54 64 74 84 94 104 6 16 26 36 46 56 66 76 86 96 106 8 18 28 38 48 58 68 78 88 98 1 08 IO 20 30 40 50 60 70 80 90 IOO no Key number by 4*5 is 4, 8, 2, 6, o beginning with 4 " 4's is 3, 7, i, 5, 9 "3 " 4's is 2, 6, o, 4, 8 2 " 4's is i, 5,9, 3, 7 I " s's is 5, o beginning with 5 " " 5 'sis 4 ,9 "4 " " " 5's is 3, 8 " "3 " " 5's is 2, 7 " "2 " " S 'sisi,6 " " i " " 6's is i, 7, 3, 9, 5 beginning with I " 6's is 2, 8, 4, o, 6 " 2 " 6's is 3, 9, 5, i, 7 "3 " 6's is 4, o, 6, 2, 8 4 " " " 6's is 5, 1,7. 3,9 r "5 " 6's is 6, 2, 8, 4, o 6 " 8's beginning with i is i, 9, 7, 5, 3 " 8's " 2 is 2, o. 8, 6, 4 " 8's " " 3 is 3, i, 9, 7, 5 " 8's " 4 is 4, 2, o, 8, 6 " " " 8's " " 5 is 5, 3, i, 9- 7 " " 8's " 6 is 6, 4, 2, o, 8 " 8's " " 7 is 7, 5, 3, i, 9 " 8's ; 8 is 8, 6, 4, 2, o Count, beginning with i, to the number itself in each case, and count from the beginning unit figure to 100. To find the sum of two fractions having one for the numerator take the sum of the denominators for the numerator of the answer and the product of the denominators for the denomina- tor of the answer, as, 1/2 + 1/6 = 8/12. RAPID CALCULATION 11 Find the new denominator and new numerator in each case. 1/2 + 1/6= 1/3+1/6= 1/2+1/8= 1/4 + 1/3= 1/7 + 1/6 = 1/3+1/2= 1/7 + 1/3= 1/8 + 1/2= 1/5 + 1/4= 1/9 + 1/3 = i/5 + i/3= 1/2 + 1/7= 1/9 + 1/2= " 1/7 + 1/5= 1/9 + 1/4 = 1/3+1/8= 1/7 + 1/2= 1/8 + 1/3= i/5 + i/6= 1/9 + 1/5 = 1/9 + 1/6= 1/7 + 1/6= 1/6 + 1/4= 1/9 + 1/7= 1/8 + 1/4 = 1/6 + 1/5= 1/8 + 1/9= 1/8 + 1/5= i/3+i/7= 1/6 + 1/8 = 1/7 + 1/4= 1/8 + 1/7= 1/7 + 1/5= 1/8 + 1/9 = Use 2, 3, 4, 5, 6, 7, 8, or 9 for numerators of these factors. In each case take the sum of the denominators and multiply by the numerator, as, 2/3+2/7 = 20/21. The denominator of the answer will be the product of the denominators. The complement of a number is the difference between the given number and 10, or some power of 10. For example, the complement of 8 is 2, the complement of 75 is 25, the com- plement of 850 is 150. Find the complements of the following: 6 2 85 96 246 753 4 7 75 58 397 947 5 8 64 71 846 576 3 9 88 94 989 649 This method is used in subtraction on adding and calculating machines. Proof of Addition 4673 2483 4267 5624 17= sum of first column 23 = " " second " i 8 !=";'' third 15 = " " fourth " i 7047 12 OFFICE PRACTICE "Casting out Q'S" The method of casting out 9's is sometimes used as a proof of the accuracy of columnar addition. Find the sum of the digits added horizontally and divide the total by 9, or cast out the nines by grouping figures the sum of which equals nine. According to the method used by John H. Walsh in his text- book, "Business Arithmetic," we could find the "excess" of 9's in 3460875 by adding 3+4+6+8+7 + 5 or 33 and dividing by 9 which leaves a remainder of 6. He also recommends the method of rejecting 9 when the sum of two or more digits is 9. 98753214=3 1 76543216 = 7 97591246=7 89765 381=2 73954769=5 24-7-9=2 nines and 6 remainder 436607826 =33-^9 =3 nines and 6 remainder As we have 6 as the remainder for the addends and 6 as the remainder for the answer, we have proved the problem by cast- ing out the 9's. Add the following and prove by casting out the 9's: i. 47897684 2. 84967854 3 2076483 97345632 82478978 727645 3 i 68764376 97463172 98765432 63543781 97865387 3. 784695439 946135846 473983467 537281973 175837468 359721837 RAPID CALCULATION 4. 2345327124369 7314962823124 6~ 781397214813 6734218938126 3214327568772 4523264658176 9231682345681 2769437876256 4152368327219 1872976198345 6142368976413 MULTIPLICATION The process of cross multiplication is applicable to all prob- lems in multiplication and may be used in extending invoices, as the number of the articles purchased may be multiplied by their cost, either to verify the cost or to find the extensions. The following diagram may be used to illustrate the multiplica- tion of 24 by 38 when the product is obtained without the use of pencil and paper: = 912 1. Multiply 8X4; set down 2 and carry the 3. 2. Multiply 8X2; also 3X4; to the sum of these add the 3 which was carried. The total is 31 set down the i and carry the 3. 3. Multiply 3X2; add the carrying figure 3; set down the 9. The total or product is 912. Multiply the following by cross multiplication: a 25X46 h 42X36 o 92X24 b 24X74 c 47X56 d 68X35 e 42x37 f 83x24 g 97X53 i 58X43 j 83x67 k 49X26 1 28 X64 m 76X32 n 26X45 P 74X43 q 46X58 r 93X28 s 79X42 t 64X37 u 67X43 OFFICE PRACTICE Add the following, find the difference, and multiply the re- sult by 678. a 2 786 i 3 79 89734569 53461472 98837863 79753457 37925238 32345778 41297349 64368437 23456842 55747938 23259725 INTEREST In calculating interest at 6% for short periods, business men point off i% or 2 places in the principal as the interest for 60 days. Using this method for 6 days 3 places would be O FRACTIONAL PARTS OF AN HOUR RAPID CALCULATION 15 pointed off; for 600 days, i place would be pointed off; while for 6000 days no places would be pointed off as the interest would equal the principal. Using the idea that 60 minutes equals one hour the fractional part of an hour would be as in diagram on page 14. This idea may be applied to days in applying the fractional part of 60 days to the different number of days for which interest is to be paid. To compute the interest at any other than 6% find how much more or less than 6 is the rate desired. Find the interest at 6% and then at the desired rate. 6 1/2% is 1/2% more than 6% 6 3/4% is 3/4% " " " 7 1/5% is i 1/5% " " " 7 1/2% is i 1/2% " " " 5 1/2% is 1/2% less " " 5 1/4% is 3/4% " " " 4 4/5% is i i/5% " " " 4 1/2% is i 1/2% Find the interest at 6% and then divide by the fractional rate above or below 6%. If more than 6% add the result of the division to 6%. If less than 6% subtract the result of the division from 6%. 3 days = 1/20 of 60 days 25 days =5/1 2 of 60 days 4 " =1/15 " " " 30 " =1/2 " " " 5 " =1/12 " " " 35 " =7/12 " " " 6 " =1/10 " " " 40 " =2/3 " " " 10 " =1/6 * " 45 " =3/4 "" " 12 " =1/5 " " " 50 " =5/6 " " " 15 " =i/4 " " " 55 " =11/12" " " 20 " =1/3 " " " The following problems are taken from Walsh's Business Arithmetic: Find the interest on $583.20 at 6% for 90 days, for 80 days, for 75 days, for 72 days: i6 OFFICE PRACTICE 60 days interest on $583.20 +3Odays 1/2 interest for 60 days $5.832 2.916 90 days = the sum of 60+30 = 90 days 8.748 60 days interest on $583.20 = $5.832 + 20 days 1/3 of 60 days = 1-944 80 days = the sum of 60+20 = 80 days 7-776 60 days interest on $583.20 = $5.832 + 15 days 1/4 of 60 days = 1458 75 days = the sum of 60+15 = 75 days 7.290 60 days interest on $585.20 = $5.832 + 12 days 1/5 of 60 days = 1.166 ^2 days = the sum of 60+12 = 72 days 6.998 decimal point moved in the principal 2 places to the left interest on $583.20 for 80 days at 6% interest on $583.20 for 75 days at 6% interest on $583.20 for 72 days at 6% To find the interest at 6% for any given number of days divide the number of days into aliquot parts of sixty, as: 60 days 60 days 60 days 60 days 60 days 30 days 20 days 15 days 12 days 6 days 5 days 4 days 3 days 2 days i day 95 days 84 days 78 days 74 days 67 days Find the interest on $394.75 at 6% for 86 days. 60 days interest = $3-9475 - Point off 2 places or 20 days = 1/3 of 60 days = 1.3158 - move the decimal point 6 days = 1/10 of 60 days = -39475 - in the principal two places to the left. 5.65805 - or point off 3 places in the principal or move the deci- mal point 3 places to the left for 6 days. To find the interest on $834.36 at 6% for days less than 6o ? 48 days, 50 days, 54, days, 55 days, 59 days. RAPID CALCULATION 17 The only difference in the method is that to find the interest by the 60 day method for days less than 60 we find the interest for 60 days and for the aliquot part of 60 days, but deduct the interest from that of 60 days. 60 days 60 days 60 days 60 days 60 days 15 days 12 days 10 days 6 days 5 days 45 days 48 days 50 days 54 days 55 days 60 days i day 59 days Find the interest on the following, using the 60 day method: 1. $6853 for 60 days 2. 4934.50 for 6 days 3. 5421 for 1800 days Note: For 6000 days no places pointed off. i8co days is what part of 6000 days? 4. $6348 for 6000 days 5. 3256 for 1 200 days 6. 1264.60 for 90 days 7. 4211 for 72 days 8. 1342 for 600 days 9. 2330 for 900 days 10. 1570 for 1 500 days u. 2427 for 200 days 12. 5925 for 60 days 13. 6380.75 for 6 days 14. 449 for 1 200 days 15. 4328 for 6000 days 1 6. 1137.70 for 80 days 17. 7421 for 72 days 1 8. 4620 for 1800 days J 9- 593 f r 2400 days 20. 8972 for 60 days 21. 7372.45 for 6 days 22. 4621 for 1800 days 23. 1 200 for 6 days 24. 450 for 60 days 25. 1500 for 600 days i8 OFFICE PRACTICE 26. 6000 for 91 days 27. 12000 for 64 days 28. 830 for i year, 7 months, 30 days 29. 1500 for 2 years, 6 months 30. 1 200 for 2 months 31. 1628 for 10 months 32. 1560.75 for i year, 3 months, 5 days 33- I 59 f r !8oo days 34. 2135 for 2 years, 6 months 35. 600 for 30 days 36. 60 for 26 days 37. 4200 for 66 days 38. 4510 for 6 days 39. 989 for 1 80 days 40. 60 for 89 days 41. 89 for 60 days 42. 12000 for 45 days 43. 1800 for 75 days 44. 24 for 85 days 45. 85 for 24 days 46. 3000 for 75 days 47. 75 for 3000 days 48. 750 for i year 49. 5700 for i year, 7 months, 20 days 50. 1540 for 2 years, 5 months, 15 days Work the above problems out at 61/2%, 63/4%, 7%. 7 1/2%, 8%, 5%, 5 1/2%, 5 1/4%, 4%, 4 1/2%. Note: Interest at 6% on $8972 for 6 days = $8.972 3 places " " " " " 60 " = 89.72 2 places " " " " " " 600 " = 897.20 i place " " " " " " 6000 " = 8972.00 no places CHAPTER THREE CORRELATION OF MERCANTILE ACCOUNTS WITH OFFICE PRACTICE ACCOUNTS have existed since prehistoric man drew a square on the sand near the seashore and placed a small pebble in each corner and one in the center of the square, making it possible for him to trade with his fellowman and to record the business transactions in units of five. The Chinese could trade in ten units, as they used the abacus, by moving the colored beads which were strung on wires and were in units of ten. This method of notation is still used in parts of China, Japan, and Russia. The Babylonians recorded their business transactions on sun-baked tablets, making some of these as small as one inch by three inches. The Metropolitan Museum of Art, New York City, has on exhibition several of these tablets on which records of partnership, contracts, receipts, drafts, promissory notes, sales, inventories, and checks are recorded. The Egyptians used papyrus for their accounting records, and had a system of classification. The Ancient Greeks re- quired all their public officials to keep accounts of their steward- ship while in public office, and upon leaving office they were required to render an account of all funds intrusted to their care while in their official position. The Romans kept records of all receipts and payments of cash while the wealthy Romans generally paid by checks. The early English kept a system of records which related to the levying and collecting of taxes from all taxable estates. The French compiled lists of all debtors and creditors similar to customers' and creditors' ledger accounts today. [19] 20 OFFICE PRACTICE The idea of money columns developed about the year 1300. Roman numerals were used in keeping accounts, as courts demanded books made out in the Roman notation. The Roman numerals were discarded and the Arabic were substi- tuted in bookkeeping records about the year 1700. Until quite recently loose-leaf books were not allowed as court evi- dence until a decision was handed down making loose-leaf books acceptable as legal evidence. The Italians were the first nation to introduce a system of double entry in keeping accounts in business transactions. They used this system as early as 1340. The Italian idea of account keeping was adopted by the English and later by our country. The idea of double form or the left hand side of an account being used for all debit en- tries and the right hand for all credit entries has therefore come down to us from the Italians, through England, by way of Holland. Some English texts show the liabilities of the balance sheet recorded on the left side of the page, and the assets on the right side, while we now record the assets on the left, and the liabilities on the right side of the balance sheet. The first accounts were records of cash receipts and pay- ments. Later, when records were kept of the exchange of goods, that is of merchandise purchased and sold for cash and on account, more elaborate systems developed and the journal was added as an extra book. In the old method of accounting, the student entered all transactions in a blotter or day book. These accounts were then entered in the journal and were later transferred to a book called the ledger, in which all transactions of a similar nature were summarized under one heading as " Merchandise." Then another method came into use and the transactions were entered in the ledger accounts directly .rather than in the journal. By this method the student concentrated his atten- tion upon the increases and decreases of the assets and liabili- ties of the business, and then realized the result of his work. MERCANTILE ACCOUNTS 21 By reference to. the cash account in the text the student may see that the increases of the asset, cash, are under "cash receipts," while the decreases are noted under "cash paid out" by the business, the difference between them being the balance of cash on hand. Every transaction involves a transfer of either money, or an equivalent of money, from one person to another. If cash is given for goods, an exchange of values results and the cash account or record will show a decrease of cash, while the goods account will show an increase in the value of goods. Now this idea of increase or decrease of debit and of an asset, expresses the necessity of the idea of debit for increases of assets and credits for decreases of assets. For every debit, then, there must be a credit, as an exchange involves at least two accounts, and the sum of all the debits must equal the sum of all the credits. By using the method of the equation by which the debits and the credits are obtained which lead to the trial balance, and by separating what the business owns, called assets, from what the business owes to others (liabilities); and by subtracting the liabilities from the assets, we find the capital, proprietorship, or the present worth of the owner of the business. Thus, all the items required for the balance sheet become known. The business man is always interested in the balance sheet because it shows him his capital, his assets, and his liabilities. What he is worth, his capital, is found by sub- tracting his liabilities from his assets. Stated as an equation, Assets liabilities = capital; or better still: Assets = Liabili- ties+capital. The statement of the business which shows a list of the pro- prietor's assets and liabilities or what he owns, and what he owes to others, is known as the Balance Sheet. Balance Sheet (see page 55) Assets Liabilities + Proprietorship 22 OFFICE PRACTICE February i, 1921, F. E. McGill started business with a cash investment of $5000. ASSSETS = PROPRIETORSHIP Assets equals Proprietorship Cash $5000 $5000 February 2, 1921, F. E. McGill bought on account merchan- dise for $1500 from Harris & Company; a typewriter for $100 from the Underwood Typewriter Company, and office furni- ture from the Library Bureau for $400. ASSETS LIABILITIES = PROPRIETORSHIP Cash 5000 Merchandise 1500 Harris & Company 1500 Typewriter 100 Underwood Typewriter Company 100 Furniture 400 Library Bureau 400 7000 2000 5000 Working this problem as an ordinary problem in arithmetic gives the following: Assets 7000 Liabilities 2000 Difference or Proprietorship 5000 or better still: Assets Liabilities Cash Merchandise Typewriter Furniture 5000 1500 100 400 Harris & Company 1500 Underwood Typewriter Company 100 Library Bureau 400 Total Assets 7000 Total Liability 2000 Capital 5000 . E. McGill 7000 Total liability and capital MERCANTILE ACCOUNTS 23 The financial facts involved in the above problem may be graphically stated as follows: Debits Credits Assets Liabilities & Capital Cash 5000 Harris & Co 1500 Merchandise 1500 Underwood Typewriter Typewriter 100 Company 100 Furniture 400 Library Bureau 400 Total Liabilities 2000 Capital F. E. McGill 5000 7000 Total Liabilities 7000 Total Assets & Capital In the above diagram, for convenience, it has been decided to call the items on the left side, debits or assets, and those on the right, credits or liabilities and capital. It is, therefore, well to bear in mind that assets are debits and are recorded on the left side of their respective accounts; that liabilities and capital are credits and are recorded on the right side of their accounts. With the above scheme as a working formula, the recording of transactions will be found to be a simple matter. How are the above items represented in the ledger or the book of accounts? To illustrate the Cash Account first, as- sume that F. E. McGill finds a $100 bill on Feb. 15, 1921; loses $10 on Feb. 17; receives a gift of $500 from her uncle; donates to charity $100. How much cash has she on Feb. 17, and what has happened to her capital or worth? On February 2, 1921, the ledger accounts are shown as follows: Dr. (Increases) Cash (Decreases) Cr. 5000 2 4 OFFICE PRACTICE Dr. F. E. McGiLL Proprietor Cr. 5000 Dr. Merchandise Stock . Cr. Dr. Typewriter Cr. 1500 100 Dr. Furniture Cr. 400 Dr. Harris & Co. Cr. Dr. Library Bureau Cr. 1500 Dr. Underwood Typewriter Company Cr. 400 100 In the above records or accounts (groups of value of the same kind under their respective headings) the assets are shown recorded on the left or debit side of their accounts, while the capital or worth of F. E. McGill, and the liabilities are MERCANTILE ACCOUNTS recorded on the right or credit side of their respective accounts. After February 2, 1921, owing to the increases and decreases of cash or the asset cash, there will be indicated in the cash account the several increases and decreases mentioned; and since these increases and decreases affect the worth or capital of F. E. McGill, these increases and decreases must be shown corre- spondingly in the capital account also: On February 17, 1921, the Cash and Capital accounts show the following; the other accounts remaining the same. Dr. (Increase) Cash (Decrease) Cr. Feb. 2 15 Found 17 Gift 5000 100 500 Feb. 17 Lost Donated 10 100 Dr. F. E McGiLL Capital Cr. Feb. 17 Lost 10 17 Donated 100 Feb. 15 Found 17 Gift 5000 IOO 500 In the cash account, the asset cash increased from $5000 on February 2 to $5600 on February 17, but it also decreased by the sum of no; thus leaving a balance of $5490. When the cash account recorded an increase of $100 on the debit side, additions being shown on but one side of an account and sub- tractions on the opposite side, the capital account which shows the worth of F. E. McGill then increased to $5100. To show $100 as an addition to F. E. McGill's capital, increase had to 26 OFFICE PRACTICE be made on the credit side of the capital account. Since the decreases of cash had to be indicated on the right or credit side of the cash account so the decreases of the capital or worth of F. E. McGill had to be indicated on the left or debit side of the capital account. Thus, in graphic form, the practice of recording increases and decreases of assets and capital and liabilities, too, as these are credit accounts also, may be indi- cated as follows: Dr. Assets Cr. Increases Decreases Dr. Capital Cr. Decreases Increases In conclusion, then, it is well to remember that assets, when increased, show these increases on the debit or left side of their accounts; and when decreased, show these decreases on the credit or right side of their accounts, this arrangement is necessary for convenience and system. The capital account and the liability accounts, being credits, necessarily show in- crease on the credit side and decrease on the debit side of their respective accounts. The question always is: Has the transaction or event involv- ing values increased or decreased the capital of the proprietor? Increased or decreased any asset or liability? F. E. McGill bought merchandise for cash, $500. The merchandise or purchase and the cash accounts are both asset accounts. The merchandise or purchase account shows an increase of $500 in the value of the asset purchases, and the MERCANTILE ACCOUNTS cash account records a corresponding decrease of $500, as the asset cash was decreased. In this case the capital has not been affected; two assets of equal value were simply exchanged. Dr. Purchases Purchases or In- creases 500 Asset is increased Dr. Cash Cr. Receipts or Increases Payments or De- creases 500 Asset is decreased F. E. McGill bought $200 merchandise on account from Vincent & Company. This purchase on account increases the asset account merchandise or purchases and increases the liabilities. To indicate to whom money is due for an asset increased, a personal account is added under the heading of Vincent & Company, to whom McGill owes the $200. Debit purchases because the purchases asset has increased. Debit purchases because $200 worth of merchandise was received or bought, thus increasing the assets by the amount of the pur- chase. Credit the personal account, Vincent & Company, because the liabilities are increased $200; that is, Vincent & Company have a claim against F. E. McGill for $200. Purchases 200 Asset is increased 28 OFFICE PRACTICE Vincent & Company 200 Liability is increased Assume that a check for $100 is sent to Vincent & Company, to apply on their account. What effect has this transaction upon the condition of F. E. McGill's worth? Has she lost or gained any money? No. But has she decreased her cash and by so doing also decreased her indebtedness? Yes. In this in- stance, then, the asset cash shows a decrease on the right or credit side of the cash account and the liability account called Vincent & Company; to distinguish it from other liability ac- counts, is correspondingly decreased by an entry on the debit side of the Vincent & Company account. Thus far, then, it is clear that for convenience and system it is best to debit assets for increases of those assets; to credit assets for decreases of those assets; to credit capital and liabilities for increases of those items; and to debit them for decreases of the liabilities and capital. Financial Statements What do you own that helps you and is of value to you in school? The following is a list and the value of each item: Pencil box .15 Pencils .10 Ruler .05 Total Assets .30 Do you owe for them? (no) Then what are you worth? You may -call it your total assets. Since you owe nothing, your assets equal your capital. Business men want information of all the property available for use in the business. Things named in this list are the MERCANTILE ACCOUNTS 29 assets of the business, such, as counters, shelves, cash registers, adding machines, stock of goods, stationery, etc. In large business houses, the owner does not personally own all the property needed to carry on the business; therefore he must borrow from others what he needs, either money or stock of goods bought but not yet paid for. Thus he becomes in- debted to others. He is liable to be called upon to pay these people who now have a claim upon the assets of the business. All papers used in business must be labeled and dated as in the following: Information Statement or Financial Statement JAMES BROWN January 31, 1921 Assets Cash Stock Total Assets 900 125 1025 1025 Liabilities and Capital Owed to Jones 318 Owed on Written Promise 75 Total Liabilities 393 James Brown, Ownership 632 1025 Every business is conducted for the purpose of increasing ownership. The proprietor, therefore, desires information that will help him to increase his capital, and that will assist him in making plans for the future management of his business. The information statement will not only help the manager him- self, but may be shown to persons from whom it is desired to borrow money or to buy goods on account. Since any going concern is a living organization, that is buy- ing and selling continually, the information about assets, lia- bilities, and capital will be true only at the time the report is made, because the assets are always either increasing or de- creasing and the liabilities, likewise; therefore, the capital is always changing. 30 OFFICE PRACTICE James Brown on February 28, 1.921, calls for information about his business. He receives the following statement or report: JAMES BROWN February 28, 1921 Assets Liabilities and Capital Cash 825 Owed to the Corn Ex- change Bank 1595 Due from Grant & Co 42.5 Owed to the White Company 34-OO Stock 4625 Total Liabilities 4995 Horses and Wagons 850 James Brown, Capital 1730 Total Assets 6725 6725 6725 What would you do with the two sheets of information if you were James Brown? You would compare the capital January 31, which was $632, with the capital, February 28, $1730, in order to note the increase in capital or gain. No business man is satisfied to know merely that he gained or that he lost. He wishes to know the source or cause of his gain or loss so that he may know how to improve his business and make it progress more rapidly. Goods are bought to be sold again at a higher price. This brings in the two elements of cost and selling price, which must be considered in order to determine the loss or the gain in the business, thus: Selling price of goods 850 Cost of goods 725 Gain 125 Every business must incur some expenses which decrease the gross gain. Suppose the expenses in this problem were $35, then the net gain would be only $90. MERCANTILE ACCOUNTS 31 The owner can now compare this report with the report of the previous month, and see at a glance whether his sales have increased or decreased, whether the cost of the goods has increased or decreased, and thus know the present growth or lack of growth of the business. This information enables him to correct any faults in his business force or methods. The business usually has unsold goods on hand. Therefore, it must have some method of deciding the cost of the goods that have been sold. In a new business if a dealer buys $8000 worth of merchandise and has, at the end of the period, $2000 worth left, he assumes that he has .parted with merchandise that cost him $6000. This transaction is shown thus: Purchases 8000 Less Inventory (Stock at end) 2000 Cost of what was Sold 6000 Assume that the business continues; then he has $2000 worth of stock on hand. In addition, he purchases $3500 more of stock. He now has what he started with, stock (called inventory), $2000, plus $3500 purchases, or $5500 merchandise available for sale. At the end of the month he takes account of stock or inventory and finds that the stock is valued at $1300. He must have parted with what cost him $4200, shown thus: Merchandise, Inventory May i, 2000 Bought during month 3 500 Available for Sale during month 55OO Less Merchandise Inventory (on hand May 31) 1300 Cost of Merchandise Sold . 4200 The business man wishes all the information about the causes of the gains or the losses during the month or longer in a concise form, thus: 32 OFFICE PRACTICE JAMES SNOW Loss and Gain Statement For period ended June 30, 1921 Sales 9850 Inventory June I 360x3 Purchases 4200 Available Merchandise for Sale 7800 Inventory, June 30 1200 Cost of Goods Sold 6600 Gross Gain on Trading 3250 Deduct: Expenses of carrying on business 350 Net Gain 2900 Thus far two kinds of statements have been shown, both of which give information to the owner. He learns from them the condition and the progress of his business. The question must have arisen in your minds as to where the bookkeeper gets this information. The bookkeeper gets the information from the accounts which he keeps in a book called the ledger. The in- formation about cash is found in the cash account, thus: Cash Received (Increase) 940 Spent (Decreased)- 700 The business man is interested more in the balance of cash on hand than in the amount of cash received and the amount of cash disbursed; therefore the balance of cash appears in the information statement. Notes receivable account in the ledger MERCANTILE ACCOUNTS 33 tells the amount of the notes received and also the notes re- deemed by others, thus: Notes Receivable Received (Increased asset) Redeemed by others (Asset decreased) 9400 4600 1 200 9400 1200 But the proprietor wishes to know the balance of the notes still to be redeemed by others, therefore the balance $4600 is recorded on the information sheet. This information sheet contains only the balance, or difference between the right and left hand sides of each account, and for that reason it is called the balance sheet. Balance Sheet of JAMES JONES December 31, 1920 Assets Cash 240 Notes Receivable 4600 Merchandise, Inventory 6500 Liabilities and Capital Notes Payable 2300 Accounts Payable 1600 James Jones, Present Worth 7400 All the items on the left side of the balance sheet appear as balances on the left side of the respective accounts, and the items on the right side of the balance sheet are found on the right side of the respective accounts, as follows: 34 Balance Stock OFFICE PRACTICE Cash 240 Notes Receivable Balance 4600 Merchandise Inventory 6500 Notes Payable Balance Accounts Payable John Smith L. Lane 2300 Balance 900 James Jones, Proprietor Balance 700 Capital 7400 MERCANTILE ACCOUNTS 35 Assignment: Set up the balance of the ledger accounts from which the following balance sheet was made: Balance Sheet JAMZS RYAN September 30, 1921 Assets Liabilities and Capital Cash Machinery and Tools Delivery Equipment Merchandise Inventory Accounts Receivable Real Estate Total Assets 9400 1200 900 1500 950 2500 16450 Notes Payable 2500 Accounts Payable 1800 Mortgage Payable 850 Total Liabilities James Ryan, Capital 5^0 11300 16450 16450 The McGill Company buys and sells in various ways, for cash, on account, and on written promise, such as notes, trade accept- ances^ and drafts. If the company buys for cash and either gives cash from the cash drawer or gives the personal check of the company, it parts with cash; therefore, the amount of cash given or parted with, is entered on the credit side of the cash account by the book- keeper, or may be entered on the credit side of the cash book. If goods are sold for cash and cash or a personal check is received the amount of this cash received is entered on the debit side of the cash account or cash book to indicate an in- crease of the asset cash. To find the difference between the receipts and payments of cash, or increases or decreases of cash, find the total receipts and the total payments of cash and subtract, calling the result of this process the balance, or cash on hand. As the books of this company are kept by the double entry system an entry of equal value must be made in at least two 36 OFFICE PRACTICE accounts for every business transaction. For every entry on the debit side of the books there must be an entry of equal value on the credit side to keep a balance which will be a check on the bookkeeper. As the following transaction is for merchandise, the amount, $275, must be entered as a cash purchase on the debit side of the Purchase account, because the asset goods or purchases was increased. Only goods bought to be sold by a business, is called merchandise, and is recorded in the purchases account. When merchandise is sold at cost price for cash, the amount of the sale must be entered on the credit side of the purchases account to indicate a decrease in the value of the asset purchases. The difference will show the balance of goods on hand. The amount of cash received is entered on the receipt or increase side of the cash account while the cash paid out is entered on the payment side, or decrease side. But if the goods sold were sold at a price different from the cost price, then the entry must be made on the credit side of the sales account to indicate a de- crease of the asset purchases at a greater or less price than cost. The McGill Company are wholesale dealers in flour, grain, and groceries; thus flour, grain, and groceries must always be considered merchandise by them. Transaction Cash On Hand 9000 For Sale 950 (see sales a/c below) For Purchases 2000 Decrease of cash for goods bought. (see purchase a/c below) Purchases Cash Purchase 2000 Increase of asset pur- chase in exchange for decrease of asset cash (see cash a/c above) MERCANTILE ACCOUNTS 37 Sale For Cash 950 Decrease of the purchases asset at a price different from cost. The capital of the owner of the business will be affected by this event. (see cash a/c above) If the decrease of the purchases asset at a price different from cost were indicated on the credit side of the purchase account, it would be difficult to ascertain the balance of goods on hand after the sale. It is therefore customary to set up a branch of the purchases account, called the sales account. The McGill Company bought for cash from George H. Silverman, Boise, Idaho, the following: 25 bbl. flour 50 bu. grain 275.00 Sold for cash to different customers the following: 15 bbl. flour 8 bu. grain 150.00 15.00 165.00 Enter the transaction in the cash account and in the mer- chandise account, as represented by the purchases account and the sales account. Cash Account Receipts 165.00 Payments 275.00 and in our 38 OFFICE PRACTICE Purchase Account Purchases 275.00 Sales Sales 165 This was a merchandise purchase for cash and a merchan- dise sale for cash. If the McGill Company buys merchandise on account it becomes indebted to the firms from whom it buys and must show on the books the names of the firms to whom it is in- debted. This is done by opening an account with the individ- ual from whom the company bought and the amount of the purchase or merchandise which was bought on account is so entered. When goods are bought on account merchandise is received, and the amount is entered on the debit side of the purchases account. As the books are kept by the double entry system, another account is opened, called a personal account, which shows to whom money is owed or from whom merchandise was bought on account. When the bill is received and is either paid in cash or by check of the McGill Company, the amount is entered on the credit side of the cash account or cash book and the same is also entered on the debit side of the account, made out in the name of the firm to whom the McGill Company was indebted, and shows that the indebtedness with that firm is canceled or de- creased by payment of cash. They acknowledge the amount of cash received by sending a receipt. MERCANTILE ACCOUNTS 39 First Transaction: The McGill Company bought on account, or had charged, the following: From Charles B. Vincent & Company, Baltimore, Maryland 20 bbl. G. Sugar 100.00 30 bbl. Searchlight Flour 150.0x3 250.00 Second Transaction: The Company's check for $250 is sent to Charles B. Vincent & Company in full of account. Both transactions are entered in the ledger as follows: Charles B. Vincent & Company Indebtedness with them is can- celed (Liability decreased) 250.00 McGill Company is indebted to the above firm (Liability increased) 250.00 Purchases Account Purchases (Asset increased) 250.00 Cash Account Receipts or Increases Payments or decreases 250.00 Sometimes, when a firm buys or sells on account, security is required. This may either be bonds, notes, or a trade ac- ceptance. If merchandise is purchased from a firm and a note of the McGill Company is given as security that the drawer will pay the amount later, this transaction must be entered in two accounts, the notes payable account as a lia- bility, and the purchase account as an asset. 40 OFFICE PRACTICE When the amount which is stated on the face of the note is paid, this amount must be entered in the notes payable ac- count to record a decrease of liability and also in the cash account to indicate a decrease of the asset. When a note is given to a firm that note must be paid on the date of maturity. At the date of maturity, or sooner, the face of the note is paid and is entered on the debit side of the notes payable account because the indebtedness has been decreased and the note has been returned to the drawer. The payment of cash is entered on the credit side of the cash account. Transaction: The McGill Company bought merchandise from James Robertson & Company, and gave the company's note for $5000, dated January 31. The above firm sent a check to James Robertson & Com- pany in payment of their note of January 31. Entries follow in their respective accounts in the ledger. Notes Payable Account Paid indebtedness, therefore liability was decreased. 5000.00 Gave promissory note to James Robertson & Company. McGill is indebted to them, hence a liability arises 5000.00 Purchases Account Cash Account Purchases 5000.00 Receipts Payments 5000.00 Just the opposite occurs when goods are sold on account and a note is given by someone else as security for merchan- dise sold to them. The amount of the sale is entered on the credit side of the MERCANTILE ACCOUNTS sales account and the amount of the face of the note on the debit side of the notes receivable account. Merchandise is parted with and a note is received which will be paid at the date of maturity by the person who gave it. When the person who owes money pays his note the trans- action is entered on the credit side of the notes receivable account, representing a decrease of an asset and also on the debit side of the cash account, representing a corresponding increase of another asset in exchange for the asset decreased. Transaction: The McGill Company sold merchandise to the MacDonald & Rich Company for $450, receiving their 6o-day note dated March 5. MacDonald & Rich sent a letter inclosing a check in pay- ment of their note of March 5. The correct entries in the ledger follow: Notes Receivable Account Their promissory note was re- ceived; asset increased 450.00 They canceled or decreased their indebtedness and the canceled note was returned to them. Thus, this asset disappears in exchange for cash asset. 450.00 Sales Account Sales 450.00 Cash Account Receipts 450.00 Payments 4 2 OFFICE PRACTICE The bookkeeper gets his information that he uses in the loss and gain statement from the accounts in the ledger and from other sources, as may be noted in the following: H. HARRIS Loss and Gain Statement For the month ended November 30, 1921 Sales Merchandise stock, November I Purchases Goods for Sale Deduct Merchandise Inventory, November 30 Cost of Goods Sold Gross Gain on Trading Subtract Expenses Salaries Rent Advertising Telephone Total Expenses Net Gain 3650 8350 12000 50OO 4 60 75 200 4 9250 7000 2250 739 The following accounts supplied the necessary information to the bookkeeper for making the loss and gain statement. Sales Merchandise Inventory Purchases 9250 Nov. i stock 3650 Nov. 30 stock 5000 Expense Salaries 460 Rent 75 Advertising 200 Telephone 4 8350 MERCANTILE ACCOUNTS 43 Expense Not only are goods bought and sold, but services of others, too, may be bought and sold. When a service is bought, it is an asset while it is still owned. When it no longer exists it rep- resents a decrease of the worth of the proprietor, or is a loss to him. Examples of temporary assets, or assets in the form of services which soon are used up and become non-existent and therefore losses or decreases from capital, are General Expense, Advertising, Interest, Salaries, Repairs, Rent, and other like items. F. E. McGill buys postage stamps for cash, 15 cents. What does she buy? The service of the U. S. Government mails. In this case debit the expense account to represent an increase in the asset expense and credit the cash account to indicate a decrease in the asset cash in exchange for the service asset called expense. F. E. McGill paid cash $10 to Henry Brown for the use of his money for 60 days. Debit interest cost or paid account, to represent the purchase by F. E. McGill of the services of Henry Brown's money and credit the cash account to indicate a de- crease of cash. But as the service of Mr. Brown's money exists only for a limited time, it disappears as an asset; and as nothing is received in return for this asset which disappears, a loss or decrease from capital results. F. E. McGill allows Chas. Daley the service of her money for 60 days and receives cash, $25 for that service. Debit cash and credit interest earned account to indicate a sale of services for a limited time. The cash increase in this case affects the capital of F. E. McGill as an increase or gain. Expense Postage 15 (Purchase of Services) When service is used up, the capital account is deb- ited and the expense ac- count is credited. 44 OFFICE PRACTICE Interest Cost (Paid) Purchase of Services 10 Same as the expense ac- count Interest Earned When F. E. McGill re- Sale of Service 25 ceives her money from H. Brown she receives more than she loaned to him. Her capital is thereby in- creased Business Transactions For practice these transactions may be worked out on loose sheets of ledger paper before entering them in the general ledger, as no erasures are allowed by the United States Courts in the official books of a concern. After the transactions are worked out, a trial balance will prove that the ledger is in balance. (Supplementary exercises in Accounts, Balance Sheet, Trial Balance, and Profit and Loss Statement may be found in Chapter Ten of this text.) Open a Cash account for the following transactions: Nov. 1 Received $529 for membership dues in the general organi- zation of our school. Nov. 2 Paid for printing tickets for membership cards, $3.25. Nov. 3 Received $35.99 for "membership in the tennis club. Nov. 4 Paid for tennis rackets, $9.75. Nov. 5 Paid carfare for the visiting basket ball team, $15.75. Nov. (J Paid for tickets to the theatre as reward to victorious team, $18.50. Nov. 7 Paid for luncheon served to the visiting basket ball team, $10.50. Nov. 8 Received $39.45 from admission tickets for the basket ball game. Nov. 19 Paid $5 to the basket ball coach. Nov. 20 Received $10.25 as admission receipts to the school tennis match with the Adelphia tennis team. Nov. 21 Paid $2.50 carfare of the visiting tennis team. MERCANTILE ACCOUNTS 45 Open all necessary accounts: Dec. 1 James Fischer began business with a cash investment of $2000. Dec. 2 He paid rent for his store, $50. Dec. 3 Bought of Batterson & Company for cash, merchandise amounting to $850. Dec. 4 Sold to Anderson & Scott, on account, merchandise for 365- Dec. 5 Sold to Somers, on account, merchandise valued at $256. Dec. 6 Sold merchandise to Harris for cash, $357. Dec. 7 Received from Anderson a check for $125, to apply on the account of Anderson & Scott. Dec. 8 Purchased $243 worth of merchandise from James Ferns and sent him the company's check in full of account. Dec. 9 Bought merchandise from George Givens valued at $245.75 and inclosed a check for half of the amount due. He asked Givens to allow the balance to remain on account. Sep. 1 Henry Jones began the flour and grain business at 521 Main Street, investing $6000. Sep. 2 'He paid rent for the store at 521 Main Street, 100. Sep. 3 Paid $15 for stamps and stationery. Sep. 4 Bought from James Walters, 100 bbl. flour, $975. Sep. 5 Sold to Henry Weiss 400 bbl. flour, $400. Sep. 6 Sold on account, terms 10/5, 5/10, n/3o, to H. Jackson & Co. flour, $395. Sep. 8 Bought from Livingston Bros. 60 bbl. flour and 100 bu. grain, $600. Sep. 9 Paid salaries, $55. Sep. 10 H. Jackson & Co. paid on account, $270. Sep. 11 Sold H. Smith on his note, merchandise, $350. Sep. 12 Paid on account, to Livingston Bros, $500. Sep. 13 Bought of H. Claflin on note, 60 bbl. salt, $250. Sep. 14 H. Smith paid his note of Sep. n, face, $350. Sep. 15 Paid note in favor of H. Claflin, face, $250. Oct. 1 John Whittier began business with a cash investment of $5000. Oct. 2 Paid rent of store, $100. 46 OFFICE PRACTICE Oct. 3 Bought furniture for office use, $100. Oct. 4 Bought apples for $200, and gave the company's check for the amount. Oct. 4 Bought on account from James Kingsley, potatoes for $100. Oct. 5 Sold apples for cash to W. Mason, $225. (The name of the customer is not necessary when the transaction is a cash sale. When one pays cash for an article in a store the salesman never asks the name of the pur- chaser; on the other hand if one buys an article and says to the salesman, "Charge it," or "Charge it to my account," the salesman must know the name of the person to whom the articles are to be "charged," because he must make a report of that sale to the bookkeeper, as he must send a bill for the amount charged at the first of next month.) Oct. 6 Bought on account, terms 10/5, S/io, n/3O, from B. H. Barren, flour for $50. Oct. 8 Sold to Samuel Norris on account, terms 5/10, n/3O, po- tatoes for $110. Oct. 9 Sold to C. S. Carsley, flour for #65. He sent his check for the amount. Oct. 10 Paid on account to Kingsley, $75. Oct. 11 Received cash on account from Samuel Norris, $45 and his check for $55. Oct. 12 Paid on account to B. H. Barron, $45. Oct. 14 Received on account from C. S. Carsley, $50. Oct. 15 Bought on account for our note from James Wender, mer- chandise for $500. Oct. 16 Sold on account to F. Carter for his note, merchandise for $400. May 1 A student (as Proprietor) begins the wholesale dry goods business, investing cash, $6578. May 2 Paid for stationery, cash, $25. May 3 Bought merchandise of H. M. Thamer, on account, $785. May 4 Sold merchandise to T. S. Morris on his note for $350. May 5 Sold merchandise to H. F. Lang on account, $225. May 6 Sold merchandise to H. W. Wilson on his 3O-day note, 50.75- May 7 Bought merchandise of H. H. Harris on our note for $500. MERCANTILE ACCOUNTS 47 May 8 Sold merchandise to H. T. Hamill and received his check for $250. May 9 Paid express charges on merchandise, $5.50. May 10 Paid rent of store, $100. Sep. 1 John Harrison commenced the flour and grain business at 2160 Broadway, investing cash, $3500. Sep. 2 Paid rent of store $75, and $25 for stationery and stamps. Sep. 3 Bought merchandise for cash $550 (50 bbl. flour). Sep. 4 Bought merchandise on account from Frank Gray, $25 (30 bu. of oats). Sep. 5 Bought merchandise for cash from Henry Hogan, $27 (25 bu. wheat). Sep. 6 Mr. Harrison drew $30 from the business for his own private use. Sep. 7 Sold merchandise for cash, $420 (25 bbl. flour). Sep. 9 Sold merchandise on account to Henry Davis, $32 (15 bu. of wheat). Sep. 10 Paid salaries, $150. Sep. 11 Henry Davis paid us $15 to apply on account. Sep. 12 We paid Frank Gray $20 to apply on account Nov. 1 J. M. Hastings began the flour and grain business at 345 Broadway, with a cash investment of $3000. Nov. 2 Bought of H. F. Adams, 100 bbl. flour at $4.95 a bbl. and 600 bu. corn at $.30 per bu. Paid 1/2 with company's check, balance on account. Nov. 3 Paid rent of store, $100. Nov. 4 Bought a typewriter for office use, $75. Nov. 5 Bought postage stamps and stamped envelopes, $15. Nov. 7 Sold N. C. Collins & Co., Brooklyn, N. Y., terms, 5/10, n/3O, 150 bu. corn at $.40 a bu. and 50 bbl. flour at $4.50 a bbl. Nov. 8 Sold for cash to Smith & Robbins, New Haven, Conn., 25 bbl. flour at $6.50 a bbl. and 200 bu. corn at $.40 a bu. Nov. 9 Bought of W. A. Scott, New York City, on account, 300 bbl. flour at $5 a bbl. Nov. 11 Paid clerk hire, $57.85. 4 8 OFFICE PRACTICE Nov. 12 Sold Summons & Son, Buffalo, N. Y., for cash, 50 bbl. flour at $6.50 a bbl. and 20 bu. corn at $.45 a bu. Nov. 13 Sold Smith & Robbins, 100 bbl. flour at $6.50 a bbl. Re- ceived their note for the amount of the purchase by them. Nov. 15 J. M. Hastings withdrew $200 for his own personal use. Nov. 16 Sent H. F. Adams a check for the balance due on the mer- chandise they sold to us on account. Nov. 17 Summons & Son bought merchandise amounting to $250, accepting the terms of 3/10, 2/15, n/3O. Nov. 19 We bought merchandise amounting to $750 from Hender- son & Co., terms, 5/8, 4/10, 2/15, n/3O. Nov. 20 Smith & Robbins sent a check for the face of their Note of Nov. 13. Nov. 21 John Fox & Son bought on account, 100 bbl. flour at $6.75, and 25 bu. corn at $.45. Nov. 21 N. Collins & Company paid the amount due on the invoice of Nov. 7. Nov. 22 Paid freight and express charges amounting to $54.75. Note: The terms, 2/10, 1/15, 11/30 mean 2% discount if paid any time before 10 days; i% off if paid any time before 15 days (naturally between 10 and 15 days); n/3o means the entire bill must be paid within 30 days and no discount will be allowed. See Chapter Ten for data for Balance Sheet and Loss and Gain Statements. The bookkeeper has entered the business transactions for the months of April and May in his accounts. He wished to know the total amounts of the debit and credit of each of the following accounts and the difference between the debit and credit side of each account (Balance). 1921 The McGill Company 1921 Investment 558.90 Investment 468.50 Investment 554-32 1921 MERCANTILE ACCOUNTS Cash 49 1921 Receipts Payments 1556.25 632.50 I48375 250.00 538.50 437-50 226.37 205.05 2666.67 1350.27 13-74 243.22 I527-50 33-35 1789.54 372.25 824.32 730.00 1921 Merchandise Purchases 1921 (Purchases) 4408.70 7645-63 13480.89 8510.25 (Returned Purchases because of defects for which we receive credit on their books) 227.50 145.00 1921 Merchandise Sales 1921 Returned Sales because of defects for which Credit must be allowed. 62.50 Sales 5605.73 10100.50 15125.00 11950.25 50 1921 OFFICE PRACTICE Expenses 1921 700.00 250.50 265.25 501.10 33-35 750.30 375-68 125-05 1921 George Williams 1921 (Became indebted to us) 538.50 785-67 1881.00 1527-50 1785.72 (Canceled indebtedness with us) 538.50 2666.67 1527-50 This problem may be worked on the adding and calculating machines. First, find the total of the debit side of each ac- count, and then find the total of the credit side of each account. Find the difference between the debit and credit side of each account or the balance by subtraction on the calculating machine. A trial balance is the total of the debit side and the total of the credit side of each account in a set of books. The debit side must always equal the credit side of a trial balance, and will, if the bookkeeper has entered an equal debit and credit, for each business transaction. The following accounts have been taken from the general ledger. The bookkeeper wishes to verify the trial balance before he enters it in his records. He has given the totals of each side of each account. Verify the trial balance on the calculating machine. CO S 3 3 3 O O . ~ 4J r" +J O ' g CO 3 d22 i U 3 i 8 Q 5 C 8. c b J H OO "-I O >-" 52 OFFICE PRACTICE Instead of the explanation given in the debit and credit column of the trial balance insert the figures which are on the debit or the credit side of the following accounts and add the debit and credit column to see whether the debit side is equal to the credit side of the trial balance. Trial Balance of the McGill Company c The McGill Company 40000.00 J 6 Cash 42783.66 6289.03 7 Notes Receivable 1500.00 500.00 8 Notes Payable 660.00 1660.00 9 Merchandise 9687.38 7938.67 10 Furniture & Fixtures 185.50 ii Expense 293-I5 12 Real Estate (Cost) 1645.00 13 John Rupert 765.00 749-32 H Samuel Raymond 1000.00 1316.20 IS Henry Johnson 92.13 70.00 16 Reynolds & Co 88.60 Trial Balance of the McGill Company 5 The McGill Company 190.00 6220.00 6 Cash 4942.69 3358.50 7 Mdse 8760.00 5085.40 8 Expense 450.00 9 Office Fixtures 187.50 10 Notes Receivable 780.00 254.70 ii Notes Payable 540.00 1040.00 12 Ferris & Co 1045.00 745.00 13 French & Co 198.13 75-6i H Harris & Co 72.60 487.20 15 Johnson & Co 192.60 92.11 MERCANTILE ACCOUNTS 53 Find the total receipts and the total payments of cash; then subtract the payments from receipts in order to find the balance, in the following problem: Cash Cash Receipts Payments Receipts Payments 2I7S-SO 1125.18 1196.25 294.25 346.28 374.60 327.64 1872.19 592374 27.42 2748.19 146.72 89.25 826.55 3124.63 345-28 847.19 3245-25 275-40 2173.44 1564.92 I73-I9 877.89 652.96 2147.29 1824.74 1646.10 1721.40 739-47 392.70 4854-25 1025.01 90.50 213-43 1232.16 108.72 216.10 2174.86 647.23 2096.50 1472.25 917-75 92.46 815-14 674.50 325-50 376.75 1172.60 2175.25 Balance 87.25 Balance Take a trial balance from the following accounts; verify on the calculating machine. The McGill Company Investment 4000.00 Cash Loss 120.00 Merchandise Receipts 13600.00 Purchases Payments 10229.50 Bought 5150.00 Merchandise Returned Purchases 85.00 Sales Returned Sales 250.00 Sold 6675.00 54 OFFICE PRACTICE Thomas Browne Expense 2500.00 Smith & Foley 1000.00 675.00 Rawlins & Sons Lane & Court 1400.00 Smith & Henderson 800.00 800.00 920.00 350.00 James Talcott Sanders & Co 1040.00 800.00 2650.00 5500.00 1300.00 2000.00 Babcock & Co. Balk & Tramm Discount on Purchases 800 700.00 250.00 250.00 Discount on Sales Notes Receivable 17-75 Notes Payable 152.25 3000.00 1 200.00 1700.00 2700.00 Inventory An inventory is a list of goods that are on hand in any com- pany's store at any stated period. Some concerns take account of stock every six months. The clerks in each department go through the department and make a list of every item on hand at a certain date. This list is given to the bookkeeper and he fixes the cost price of each on the article. The cost price is usually used in figuring inventory because an article may be sold at cost; if the present market price were used the entry would need to be changed if the current market price were changed, because that would show a false profit on the books. A company knows what the goods cost and can usually sell them foFthe cost price. The cost is not taken when there are exceptionally large declines in the cost price, as in the years 1920 and 1921. MERCANTILE ACCOUNTS 55 Some stores have a system similar to this. At a certain date they decide to begin to take an account of the merchan- dise on hand. They place a card in each department on which the list of goods is entered. This card is kept in the department and if any goods are sold the clerk in charge makes a record of this sale on the card. These cards are collected on a certain day. It is an easy matter to figure out the total amount of stock on hand from the cards. The cost price is entered, extensions are made, and the company has a true inventory of that date. Make out the following inventory, enter the cost price on each article, and find the total. Addition and multiplication may be made on the calculating machine. The Me Gill Company Inventory January, 1921 Article Weight Cost Total 50 hf. chest Japan Tea 3025 Ibs. 25C. 25 hf. chest Old Rose Tea 1435 Ibs. 3 8c. 25 hf. chest English Breakfast 567 Ibs. 32C. 27 bales Mocha 3456 Ibs. 26C. 34 mats Java 3200 Ibs. 29C. 25 boxes Pepper 245 Ibs. I2C. 45 cases Evaporated Apples 5671 Ibs. ISP. 67 boxes Farina 6578 Ibs. i4c. 89 cases Dried Cod 232 Ibs. IIC. 600 cans Fish (dried cod) 3145 Ibs. 34c. 4800 pkgs. Macaroni 24000 Ibs. o6c. 54 pkgs. Milk Crackers 540 Ibs. 05c. 25 pkgs. Evaporated Peaches 2545 Ibs. OQC. 450 cans Peas i5c. 2850 cans Pumpkin I4c. The above is, to the best of our knowledge and belief, a correct inventory of the goods on hand in the McGill Company, 210 Bedford Street, Stamford, Connecticut, at the close of business January 31, 1921. The United States Government has issued an inventory of 56 OFFICE PRACTICE its supplies sold by the government officials throughout the United States. These are supplies left from the army and navy after the World War. (Model Order Blank) 1919. Hon. Byron R. Newton, Chairman, Food Supply Committee, Room 135, Custom House. I desire to order the following Surplus Army Food Products Quantity Article Price Amount Due Tinned Bacon at .35 a Ib. Corned Beef, i Ib. can " .29 a can Corned Beef, 2 Ib. can " .55 a can Roast Beef, 2 Ib. can " .63 a can Corn Beef Hash, I Ib. can " .22 a can Tomatoes, #2 can " .09 a can Tomatoes, #3 can " .11 a can Pork & Beansj #i can " .05 a can Wax Beans, #2 can " .11 a can Stringless Beans, $2 can " .09 a can Corn, #2 can " .09 a can Peas, #2 can " .09 a can Pumpkin, #2 can " .06 a can Squash, #2 can " .06 a can Sugar Cured Ham " .30 a Ib. Strip Bacon " .31 a Ib. Tnl-^1 - Signed- Each student will make out an order similar to the above for the purchase of a supply of the above Surplus Army Food. (Order blank is in commercial paper envelope.) Each is allowed to purchase one ham, and 6 cans of every other article of food. Using the cost price, which is stated opposite each article, order the maximum amount allowed, make the extensions MERCANTILE ACCOUNTS 57 (Number of articles, multiplied by the price of the article, per Ib. or can) and find the total amount due. Verify on the adding machine and make out a check to James S. Long and have the treasurer of our company sign it. (Model) U. S. CUSTOMS SERVICE NAVY DEPARTMENT SURPLUS FOOD Room 135, Custom House SUPPLIES Order Blank Hon. Byron R. Newton, Chairman, Food Supply Committee. I desire to order the following Surplus Navy Food: Quantity Articles and Prices Amount Apple Butter, 7>4 Ib. cans [3] at .61 per can Apples, No. 2^ [24] " 30 " " Asparagus, No. 2^ [24] " 30 " " Apricots, No. 2^ [24] " 30 (t " Beans, String, No. 2 [24] " .10 Bacon, 12 Ib. [3] ;;a .80 " " Baking Powder, 5 Ib. .50 r " Corn Starch, I Ib. pkg. [20] " .07 " pkg Corn, No. 2 cans [12] ;; .10 " can Jams, assorted, 8^ Ib. " 95 " " Milk, evaporated, I Ib. " [48] " .11 Peaches, No. 2^2 [24] " .30 " " Peas, No. 2 [24] " .10 Pineapple (sliced) No. 2^" [24] " 30 " " Prunes, 7 Ib. [6] " .68 Pumpkin, No. 3 [12] '.' .11 Pears, No. 2^ [24! " 30 " " Raisins, 5 Ib. [6] " .80 Roast Beef, 2 Ib. [6] '; .64 Total- Signed- OFFICE PRACTICE U. S. CUSTOMS SERVICE NAVY DEPARTMENT SURPLUS FOOD PRODUCTS Room 135, Custom House Order Blank Hon. Byron R. Newton, Chairman, Food Supply Committee. If arrangements can be made as to terms of settlement and date of shipment, I desire to order the following Navy food supplies: Quantity Article and Price Amount Apples, evaporated, 25 Ib. cans at #3-35 per can 1 Baking Soda, 35 I Ib. pkgs. to case " .06 " Pkg- Barley 100 Ib. sacks " 2-75 " sack Corned Beef, 6 Ib. cans " 1.40 " can Biscuit (hard bread) 25 Ib. cans M 1.05 Catsup, No. 10 size '3 qt.) " .65 it Cocoa, 5 Ib. cans " 1-25 " " Mackerel, 100 Ib. kegs " 12.50 "keg Pickles, 92 Ib. kegs " 7.88 t< Pork, salt 100 Ib. kegs " 18.50 <. Salt, 100 Ib. sacks " I.OO " sack Peaches, evaporated, 25 Ib. cans " 3-35 " can Sauce, Worcester, 5 gal. kegs " 3-50 "keg Sauerkraut, 6% Ib. cans ii .36 " can Spinach, No. 10 size cans " 53 n Tea (Ceylon) 42 Ib. chests " .46 " Ib. Vinegar, 22 gal. kegs " 29 " gal. Salmon, i Ib. cans [24] " .14 " can Sardines, ^4 Ib. flat cans [24] " .11 " " Sauerkraut, 6y Ib. cans [2] " .36 " i< Tomatoes, No. 3 cans [24] " .12 " " Dry Beans, Kidney (Kintoki) 5 Ib. bags [3l " .06 " Ib. Dry Beans, Navy 5 Ib. " [3] " .IO " " Dry Beans, Lima 5 Ib. " [3] " .11 Rice, 5 Ib. [3] " .08 " " Syrup, No. 2 l /2 Ib. cans " [2 4 i " 19 " can Signed- -Dept.- Room No.- MERCANTILE ACCOUNTS 59 Make out an order similar to the model for the purchase of surplus food products of the Navy, ordering six articles of each item for use in your neighborhood. Verify extensions on the adding and calculating machine. The difference in the retail price of government surplus goods in the various sections of the country is due to the local expense of hauling such goods, that is, cost of transportation from the government warehouse to the place of sale of the goods and the damage due to the method of handling the goods after the delivery from the government warehouse. The numbers enclosed in the small brackets on the model represent the amount of cans or packages of food articles allowed to each person. All individual orders must be settled for in full, therefore students must make out a check payable to James S. Long, Treasurer Food Supply Committee, and enclose the check in the letter in which the order is sent. Make out a similar order for the maximum amount allowed. Pay by check. Have the proper person sign the check. Verify all extensions on the adding and calculating ma- chine. Make out the necessary data on the stub of your check in the check book. Dry Goods Invoices Verify the addition of the number of yards, the extensions, and after listing the cost, add the extensions to verify the total cost. The small number written a little above and to the right of the numbers 41, 35, 39, indicate quarter yards, thus 4I 1 , means 41 and 1/4 yds., 35 2 equals 35 and 1/2 yds. This method of writing quarters is used by the wholesale dry goods companies. 10 pcs. Muslin 4iS 35 2 > 39S 34 3 40, 36', 3S l > 33 3 40 l , 37 3 = (374 & 1/4 yds) at .08 1/4 $30.90 6o OFFICE PRACTICE 9 pcs. Gingham 24, 31, 28 3 , 272 28, 28, 26 1 , 292, 262 = (249 & 1/4 yds) at $.09 1/2 23.70 12 pcs. Long Cloth 39> 39 2 > 39S 40 2 46 1 , 44 3 , 40 1 , 42^ = (503 & i/ 2 yds) at .09 3/4 Total 49.09 oooooooooco When a Split Stick Was a Bank Check When a man put money in an English bank, three hundred years ago, his deposit was recorded by notches in a stick, which was then split, the bank keeping one half, the depositor the other. Before money was with- drawn, the two halves had to be matched together. The depositor's half was called "bank stock," the part the bank kept was the "check." Copyright, 1922, National Blank Book Company. Used by permission. CHAPTER FOUR BANKING AND BUSINESS PROCEDURE BANKING and business are dependent upon each other. Success in business depends in a large measure upon banking conditions, and banks depend upon business for their growth. Banks today resort to advertising, a method unheard of in the early days of the banking business. The modern business man understands the assistance that the bank can be to him and talks over his business problems with the bank .officials. A man in business may carry on a checking account, borrow money, place funds on interest in the savings department of a bank, buy and sell bonds and securities, discount his com- mercial papers, and even place his legal papers and valuables in the safe deposit vault within the bank. In the early days of banking a banker dealt in money only. The early Greek and Roman bankers received deposits of money and often made loans. Small clay tablets of Babylonian days show transactions in promissory notes, checks, drafts, and records of loans on mortgages. Private banking institutions existed in the early Italian cities. The bank of Venice was, probably, the first public bank. This bank received deposits of foreign money and issued certificates of deposit. In 1609 the Bank of Amsterdam was established and accepted money on deposit which could be withdrawn when desired or trans- ferred from one person to another. In 1694 the Bank of Eng- land was established to provide funds for the English govern- ment. It was incorporated and received its charter from Parliament. This bank laid the foundation of our modern banking system. 62 OFFICE PRACTICE Banks in the present century as in the other lines of business have specialized on account of the demands of the service re- quired by modern business conditions. Commercial and Non-Commercial Banks There are two kinds of banks, the commercial and the non- commercial. The commercial banks include national and state banks, the banking departments of trust companies, and private banks. National banks operate under a national charter, state banks under a state charter, while private banks are unincorporated. In some states private banks are subjected to inspection by state bank examiners. Commerical banks deal especially in the settlement of business transactions as they re- ceive deposits of cash against which checks may be drawn by a depositor. These banks are often spoken of as banks of dis- count and deposit. They lend money on short term notes, discount negotiable instruments such as promissory notes and commercial drafts, make collections, and carry on any com- mercial transactions within the powers granted by their charter. Savings Banks Savings banks are non-commercial banks that take small amounts of savings on deposit. These banks afford a safe and moderately profitable means of investing small amounts of savings. They encourage persons of moderate incomes to form habits of thrift by giving a return on savings in the form cf interest. Savings banks invest their money on deposit in a prescribed manner and only in safe securities. Difference Between a Commercial and a Savings Bank One difference between a commercial and a savings bank is the understanding between the depositors and the bank. A commercial bank will pay the amount of the checks of a de- positor, if properly signed by him for the amount for which the check is made out, to the payee or the person named in the BANKING AND BUSINESS PROCEDURE 63 check on or after the date it bears, provided the depositor has sufficient funds on deposit in the bank. Savings banks agree to return any money on deposit either to the depositor or upon his written order and on the presentation of the pass book. They do not encourage demand withdrawals. In commercial banks the pass book is merely a memoran- dum of the receipt of deposits, and usually contains no record of the withdrawals of cash or added items of interest. The depositor in a savings bank can make no withdrawals of his money on deposit without producing his pass book in which the amount of the withdrawals is entered by the bank clerk. The pass book of any bank is a receipt for the money deposited and is an acknowledgment by the bank of having received the amount stated on the deposit slip. Extreme care should always be used in making out a deposit slip in a commercial bank, as it is filed by the bank clerk and is the only legal evidence of the amount of the de- posit, should an error be made in entering the amount of the deposit in the pass book. In order to have evidence of the original transaction banks require customers to make out their own deposit slips. Difference Between a Bank Note and a Bank Check A bank note is a promise by the bank to pay the face value of the note. It is often called a bank bill. Bank notes pass without endorsement, and yield no interest to their holders as do promissory notes. A bank check is an order on a bank to pay the amount for which the check is made out, on demand or order of the payee (the person named in the check). The check is always signed by a depositor of the bank upon which the check is drawn against funds on deposit. Federal Reserve Banks In 1863 Congress passed the National Bank Act providing for Federal supervision of commercial banks, thus securing uni- 64 OFFICE PRACTICE formity in the operation of commercial banks throughout the United States. In 1913 the Federal Reserve Act was passed dividing the entire country into twelve Federal Reserve Dis- tricts, a Federal reserve bank being located in each district as follows : Federal Reserve Location of Federal District Number Reserve Banks 1 Boston 2 New York 3 Philadelphia 4 Cleveland 5 Richmond 6 Atlanta 7 Chicago 8 St. Louis 9 Minneapolis 10 Kansas City 11 Dallas 12 San Francisco National and Federal Reserve banks may issue money. A National bank note is the promise of a national bank to pay the holder the amount named on the note. The notes issued by each national bank are secured by a deposit of United States bonds with the Treasurer of the United States by the bank issuing the notes. The Federal Reserve banks are allowed to issue Federal Reserve bank notes and to take over the promissory notes and acceptances from National banks; they are also permitted to issue Federal Reserve notes on their securities, which they hold plus an additional specified gold reserve. A Federal Reserve note is issued by a Federal Reserve bank to serve as an emergency currency and the Federal Reserve System provides for a money reserve for the existing banks in case of any emergency. The Federal Reserve bank is a bank for banks, as it assists all banks within its district. Money may be transferred from one BANKING AND BUSINESS PROCEDURE 65 Federal Reserve district to another as needed. If, for example, the Federal Reserve Bank of Boston is in need of money it may rediscount its commercial paper at the Federal Reserve Bank in New York or Philadelphia, and thereby obtain money where it is in abundance. This system has prevented financial panics in recent years. Postal Savings System The United States Government authorized the establishment of the Postal Savings System by an Act of Congress, June 25, 1910. Any person ten years of age or over may open a postal savings account in his or her own name by depositing one or more dollars in any post office authorized to accept postal savings deposits. No person may at the same time have more than one account either at the same office or at different post offices. A person may deposit any number of dollars at any time, until the balance to his credit amounts to $2500, ex- clusive of the accumulated interest. After an account has been opened in the postal-savings depository, deposits may be made in person, by a representative, by money order, or by registered mail. Postal Savings deposits are acknowledged by postal savings certificates which are made out in the name of the depositor and serve as receipts. A depositor may at any time withdraw all or any part of his postal savings deposits upon demand, from the post office where the deposits were made. Postal savings certificates bear simple interest at the rate of two per cent a year. Amounts less than one dollar may be saved by purchasing postal savings stamps at ten cents each. A postal savings card with ten savings stamps affixed will be accepted as a deposit of one dollar either in opening a postal savings account or in adding to an existing account, or it may be redeemed in cash. A depositor may transfer his account from one post-office postal-savings depository to another without losing the interest 66 OFFICE PRACTICE on his account. A depositor may exchange the whole or a part of his deposits for registered or coupon United States postal-savings bonds, bearing two and a half per cent interest, issued in denominations of $20, $100, and $500. When bonds are issued in exchange for postal savings deposits the balance to the credit of the depositor is reduced accordingly, and he may make further deposits until his account reaches $2500. Loan and Trust Companies Loan and Trust Companies are non-commercial banks. Some of them combine a commercial banking business with their loan and trust business. These trust companies may invest their funds in real estate and in loans on inactive securi- ties for long periods of time. They act as holders in trust for bondholders, executors, and administrators of estates, of money property held in trust, and as fiscal agents for corporations, and as guardians to minors. In the capacity of fiscal agent they pay to bondholders the principal of bonds at the date of maturity or pay the interest when it is due on bonds left in their charge. Trust Companies also administer underwriting syndicates and in case of reorganization or dissolution they act as receivers, looking after the interest of the bondholders. The principal advantages of trust institutions are that they are permanent institutions; they are experienced in their line of business, and have regular business hours. Their transactions are always confidential, and they are in close touch with the financial world and are therefore better informed as to financial trans- actions than most individuals. The Numerical Transit System The Numerical Transit System is a time and labor saving device in banking, which designates geographical locations or places and banks by number instead of by name and address. William H. Kniffin, Vice President of the Rockville Center, BANKING AND BUSINESS PROCEDURE 67 N. Y., bank, explains this in his text, "The Business Man and his Bank," as follows: "At the right of the name of the bank on most checks there will be found a small number, thus '1-8.' This is the 'transit number' of the bank and will identify it in any bank. About 1910 the American Bankers Association adopted the plan of giving a number to every bank in the United States, this number to follow the name of the bank on its checks. The large cities, as New York, Chicago, Boston, Philadelphia, etc., were given numbers from one to forty-nine and the clearing-house number was added. Numbers from fifty to ninety-nine are used to designate the different states of the country. In referring to the National City Bank of the City of New York, in banking circles the numerals 'i 8* are sufficient, meaning City No. i, New York, and bank No. 8 in the clearing house, which is the National City Bank." Banks in the state of New York outside of the city of New York are numbered 50 while the banks in the state of Con- necticut are numbered 51. The transit number of the checks of the First Stamford National Bank, of Stamford, Connec- ticut, is 51-108, the prefix 51 indicating that the geographical location of this bank is in the state of Connecticut and that 1 08 is the clearing house number of this bank. The Clearing House The preamble of the New York Clearing House states its purpose as follows: , "The object of the association shall be the effecting at one place of the daily exchanges between the members thereof and the payment at the same place of the balance resulting from such exchanges." The object of the clearing house is to facilitate an easy and rapid method of exchange of checks collected and of checks drawn by member banks of the clearing house. Two clearings are made in the New York Clearing House, one at 68 OFFICE PRACTICE nine o'clock and the other at ten o'clock. The balance of the first clearings are carried over and included in the final clear- ings at ten o'clock, when one settlement is made. The term " clear" means exchange, as the bank that clears a check simply exchanges it for another check drawn on itself. All checks received through the clearing house are assorted. The checks of each bank are placed in a package, the amount having been listed on an adding machine, and the total written on the envelope in which the package of checks is enclosed. The transit number on checks assists the clearing house clerk as he makes up the list of banks using their transit number in place of writing the name and the address of each bank. For example, it is more efficient to record 51-108 and the amount of the checks drawn against this bank than to write, "The First Stamford National Bank, Main Street, Stamford, Connecti- cut." Each bank at clearing time has a representative present who has all the checks which his bank holds against other banks and another representative who receives all the checks drawn against his bank, from other banks. The clearing is done on the stroke of a signal bell. Each member bank has a desk arranged in an order as established by the clearing house. The representatives of the different banks exchange checks and within a few minutes each bank representative can ascer- tain the amount his bank owes to other banks or the amount they owe to his bank. In the New York Clearing House the settlement of balances is now made by debiting or crediting the amounts to the accounts of the various banks, thus avoiding the use of money. In other clearing houses throughout the United States the,settle- ment between banks is made by checks. The New York Clearing House, in order to encourage efficiency and accuracy on .the part of the members, imposes a fine of from one to ten dollars for errors in the work done by the representatives at the clearing house. BANKING AND BUSINESS PROCEDURE 69 Checks The modern business man uses checks as a substitute for money in the transaction of business. In fact business in the United States is carried on almost entirely by one medium of exchange, the check. Currency is good enough for the small affairs of life, for the incidentals of the day. It is not the Federal reserve notes, the National Bank notes, the gold or silver or the smaller coins, but the bank check which is used by every business concern in America. The American check system serves as the model for all other nations, for in no other country has the check attained such prominence in exchange transactions. The transfer orders issued by the goldsmiths of London, which permitted the withdrawal of the funds entrusted to their safekeeping, was the forerunner of the modern check. A check gives one the right to suppose that the maker of the check has on deposit in the bank named in the check a sum equivalent to the amount named. Gold as a medium of ex- change is almost never visible, being used mostly as gifts, and is never carried as money by persons living east of the Rocky Mountains. Since the World War the use of paper currency has been substituted for gold west of the Rocky Mountains. Checks represent money and our present checking system makes it convenient to transact an enormous volume of business with a relatively small sum of actual coin and currency, or with- out even the sight of money. Statistics show that in the year 1920 rriore than two hundred and fifty billion dollars in checks were passed through the New York Clearing House. When one considers that there are one hundred and fifty-four other clear- ing houses throughout the United States, and that checks which are cashed directly in the banks at which they are pay- able are not included in these, he realizes the importance of checks in modern business transactions. In the United States a large proportion of the population 70 OFFICE PRACTICE keeps bank accounts and uses checks. On the other hand in European countries the use of checks is limited because of the long formality of getting a check cashed. In the United States more rapid methods have been developed. When money was first used as a medium of exchange the great difficulty was to prevent the debasing and the clipping of the' edges of the metal used in coining money. An inventor discovered the way to make the edges of all coins serrated or milled like a saw on the edge. Scientists devoted much study to the means of preventing our bank notes and other commer- cial paper used in banking from being imitated. At present the United States Government uses every means possible to prevent counterfeiting, while the business world has invented check protectors to prevent the alteration of the figures and the name of the payee on checks. The National Bank notes and the Federal Reserve bank notes are of the same dimen- sions, which makes it convenient in handling a number of them. No uniformity of size in checks exists at the present. Stop Payment on Checks One advantage of checks over money lies in the fact that a check which is lost or stolen may be made valueless by stopping payment at the bank on which the check is drawn. The maker of the check is supposed to notify the bank, but often the payee or the person to whom the check is made payable gives the warning to the bank. The stop-payment order must be in writing, and it must reach the bank before the check is presented for payment. An oral stop order is not binding, neither is a telephone request, while a telegraphic stop order would be legally binding on the bank. In filing a stop-payment order the date of the check, the number, the amount for which the check was made out, and the name of the payee must be given. A card system is used by the bank for recording this data. This card system consists of making out a separate card for each BANKING AND BUSINESS PROCEDURE 71 stop-payment order. Each card is printed generally in red ink as follows: Memorandum Stop Payment on the following check: Amount of check -- No. Payee Maker Date of check The data received from the depositor who wishes the pay- ment on the check stopped, is entered on the card, and the paying teller records the facts on a list which he hangs near his window for instant reference. The bookkeeper and the clerks make a card record for their use. The card is then filed alphabetically under the depositor's name and tabbed, indi- cating the month payment was stopped. At the end of each month the cards of two months standing are removed and the depositors are requested to furnish further information and instructions regarding the stop-payment order which is still in force as far as the bank is concerned. Under certain condi- tions, the maker of a check is not released from his liability. See Whigham's "Essentials of Commercial Law," pp. 187, 189. Checks ought to be deposited or cashed immediately. All bank tellers have keen memories for the signature of their de- positors. An experienced teller can describe the peculiar char- acteristics of the signature of the depositors whose checks he cashes. Every depositor signs a signature card when he makes his first deposit and opens a checking account with a bank. He must use the same signature on all checks he makes out as the bank is held responsible for the signature only on cheecks . These signature cards are filed alphabetically for reference if a doubt arises as to the signature on a check which is presented for payment to the bank. (See page 88.) A check is a written order on a bank, by a depositor, and is payable on demand. The person who signs the check is the drawer, the person named in the body of the check after the 72 OFFICE PRACTICE words "pay to" is the payee, or the person to whom the check is made payable. The bank on which the check is drawn is the drawee. The words "or order" on a check make it negotiable, or payable to some one else besides the person named in the check, if the person named in the check indorses his name on the back of the check exactly as the name is written on the face of the check. Indorsement of a Check If a check is payable to the order of the person named in the check, the person so specified must indorse the check (write his name on the back of the check) exactly as it is written on the face of the check. This indorsement for example would be as follows; If drawn to the order of Mary A. Brown it will not do to indorse the check as M. A. Brown. It must be Mary A. Brown. If a check is indorsed (name written on back) pay to Mary A. Brown, and the payee signs her name below, this check becomes the property of Mary A. Brown only; but if the payee had written "Pay to the order of Mary A. Brown" and had signed her name underneath, it would then be negotiable and trans- ferable by Mary A. Brown to any other person. If the name of the payee is mis-spelled on the face of the check the payee should first write it on the back of the check exactly as it ap- pears on the face of the check, but underneath the name should be written correctly, as : Marie Brown (as on the face of the check) Mary A. Brown (correctly written) The only alteration allowed on a check is that the name of the bank printed on the check may be erased and the name of another bank in which the drawer of the check has funds on deposit subject to his check, may be substituted; e. g., a check on the Corn Exchange Bank could be used by a person having funds on deposit in the Stamford National Bank if the words, BANKING AND BUSINESS PROCEDURE 73 Corn Exchange Bank, were crossed off and the words, Stamford National Bank, were written in. This is a very poor policy to follow, and many banks object to this practice. . A check becomes a receipt or voucher after it has been paid by a bank. Canceled checks or vouchers are returned by the bank to the drawer and may be verified and filed numerically for reference. Certified Checks When a bank cashier "Certifies" or writes his name across the face of a check it is a guarantee that the drawer has suffi- cient funds on deposit in the bank named in the check to pay the amount named. The bank assumes the liability for the payment of the certified check, and the amount stated in the check is immediately withdrawn from the amount the drawer has on deposit subject to his check. The amount or the face of the check which has been certified by the cashier is then held by the bank until the certified check is presented for payment. A canceled check or voucher returned by the bank is a re- ceipt for the items for which the check paid. Many checks have the following on the back: No receipt is required. Return, if not correct, full the following items: This check pays in Date Amount Credit Discount Net Amount How to Make Out a Check and Check Stub In writing a check, observe that there are two parts the stub and the body of the check. Fill out the stub, first entering the number of the check, the date, the name of the payee or the person to whom the amount named in the check is to be paid, and what the check was made out for. 74 OFFICE PRACTICE The stub of the check is a piece of paper which remains in the book after the check is torn out. The stub shows the de- posits made, the amount for which the check was made out, and after subtracting the amount of the check, how much money remains in the bank to the credit of the depositor. DE POSITS AMOUNT DRAWN BALANCE FORD 7f o ff fg DATE O o T-H LO "O Si OJ CQ > 8 " 03 O ^ 1 o T-H 8 S 1 -s 1 ^ . j .S fcJO H 77 78 OFFICE PRACTICE Brown and Smith both carry on business in Chicago, Illi- nois. F. E. McGill, of Stamford, Conn., owes $500 to Henry Brown, of Chicago, 111. George Smith, of Chicago, 111., owes F. E. McGill, of Stamford, Conn., $500. F. E. McGill makes out the above Sight Draft and sends it to George Smith of Chicago, 111., and asks Smith to pay Brown the $500, instead of sending a check for that amount to Stamford, Conn., to McGill. Smith accepts the conditions of the Draft and indi- cates his acceptance and willingness by paying Brown the $500 which he actually owes to McGill. If it were a Time Draft he would accept it by writing across the face of the Draft the word "ACCEPTED," the date and his signature, and would pay it on the date it is due. Smith pays Brown, and thus cancels his indebtedness with McGill, while the transaction also cancels McGill's indebted- ness with Brown. New York. February 28, -Three- months ML*30* THOU SAN* SHE HUNDRED SEVEHTT FIVE DOLLARS Cora Exchange Bank. 28th Street Branch. New York. with interest at (,J. May 28. 1922 PROMISSORY NOTE A Promissory Note is the written promise of the maker or person who signs the note to pay to the person named in the note, to his order or to the bearer, a specified sum of money which is named in the note. The payment is to be made at a specified time and place, usually at the bank named in the note or at the place of business of the maker of the note. BANKING AND BUSINESS PROCEDURE 79 Note the difference between a Draft and a Promissory Note. A Draft is an order to pay the sum named in the Draft. It is drawn on a person, and is usually drawn to effect a prompt cancellation of a debt. A Promissory Note is a promise to pay the sum named in the note and is drawn by the person who promises to pay the note and is usually drawn in order to borrow money, which the borrower expects to repay within the time named in the note. Form of a Certificate of Deposit $500 00/100 SECOND NATIONAL BANK Stamford, Conn., November 25, 1921 John H. Keating has deposited in this bank Five hundred 00/100 Dollars payable to the order of himself on the return of this certificate properly indorsed. H. S. Mead, No. 94 Cashier A certificate of deposit is a written statement issued by a bank to a person who deposits money for safe-keeping. It contains the promise of the bank to return the specified sum on the return of the certificate. A certificate of deposit is of the nature of a promissory note. Indorsement of commercial papers is a statement and signa- ture written on the back of the paper, and is usually for the purpose of transferring the paper to some one, or to add to its security, or in the case of a mortgage note to record partial payments on the principal or face of the note. The important kinds of indorsements are: 1. Blank indorsement, as: Florence E. McGill the name only of the indorser. 2. Special Pay to the order of The Gregg Publishing Company Florence E. McGill This form directs payment to a specified person, to order or to bearer. 8o OFFICE PRACTICE 3. Qualified Without Recourse Florence E. McGill or Pay to the order of The Gregg Publishing Company Without recourse Florence E. McGill. The words "without recourse" excuse the indorser from further liability of payment. Protection of Checks Many devices are used by business concerns in order to protect their checks from alteration. Checks have been altered by changing the date, by removing the name of the payee and inserting "Bearer" and in some cases where the amount for which the check is made out is small a higher amount is inserted. When an altered check is presented at the bank on which it is drawn the money is sometimes paid, because the signature of the maker of the check is recognized by the bank teller. The bank has the signature cards of their deposi- tors on file for reference, and as they are responsible for the signature of the maker of a check drawn on their bank, if the signature is a forgery and the bank teller pays the amount of the forged check, the bank must refund the amount paid on the forged check. As the bank is held responsible for the signature only, the maker of a check must protect the amount and the name of the payee. The "pen change" which is a common method of alteration of checks is usually due to carelessly written checks. A word or a syllable is sometimes added where blank space has been left on the line for the written amount. A check should be carefully written leaving no blank spaces at the beginning, the end, or between the words of the written amount, and the letters composing the words should be written plainly and clearly formed. BANKING AND BUSINESS PROCEDURE 81 The model below is a properly written check: Bar TO THE Gregg Hp/tgfyhQ CflfTm^flU DOLLAHS A. Specimen is the maker, The Gregg Publishing Company is the payee, and the drawee or bank on which the check is drawn is The First Stamford National Bank. Among the devices most commonly employed for protecting checks against alterations are punching and check-writing machines, indelible ink, sensitive ink tints applied to paper, and the genuine safety papej. The bank punch protects the amount of the check by punching the figures through the paper, the perforations appearing as a series of small round holes. Check-writing machines generally cut the amount in figures or words in the check by a revolving cylinder which forces indelible ink into the paper. Some object to these ma- chines as they protect only the amount or the name of the payee. The amount, the payee's name, the date and the indorse- ments must be protected. (See specimen, p. 78.) Most banks use a genuine safety paper which contains chemicals which are soluble and very sensitive to acids, alkalis or other bleaching agents. When this paper is written upon, the chemicals tend to "fasten" or to absorb the ink. Any chemical agent which will dissolve and remove the writing ink upon this paper will likewise remove or 82 OFFICE PRACTICE iffect the chemical dyes in the paper, thus producing a con- spicuous and readily detectable stain, and instantly expose an attempted fraud. The safety paper used in making checks (National Safety Paper) protects every part of a check. A combination of a modern writing machine in conjunction with safety paper would be most effective. Safety paper furnishes the basis of protection to the different parts of the check while the writing machine partially protects the check against ''pen changes" and any attempt to raise the check so protected by erasure of the words or figures written by the machine, would be exposed by the appearance of the safety paper after the alteration. Another device used for protecting checks provides that the amount for which the check is made out be proof against alteration by writing the amount in the body of the check in words, representing dollars and cents exact by writing a complete word to each stroke of the handle of the device. The company making this protector issues to its users a bona- fide forgery insurance policy, indemnifying the user against loss or lawsuits on checks written under the terms of the policy. Exercises i Make out a check dated today on the First National Bank of your city for $275.85, payable to Mary H. Kane. 2 You owe The McGill Company $128.75. Pay them by drawing a check on the Second National Bank of your city. 3 You have received a check from The McGill Company for $259 payable to your order, but your name is mis-spelled. Indorse the check properly, and, by indorsement, transfer the check to Henry Peterson only. 4 Write to one of the flour and grain companies nearest your city and order merchandise. Inclose a check for the amount due and ask for a copy of their latest price-list. 5 Order merchandise from the grocery company nearest your city; inclose a check for the amount due, and express a desire to have the merchandise shipped by freight via the main railroad system passing through your city. BANKING AND BUSINESS PROCEDURE 83 6 Make out a check for $253.75 dated today on the Second National Bank, making Henry Harrison the payee. 7 You owe Thomas Fairbanks $67.75. Make out a check for this amount on the Second National Bank. Note: Record all necessary data on the stub of the check book. Depositors' Ledger Kept by the Bank A commercial bank must keep a bank ledger, also called a depositor's ledger, in order to know the balance, subject to check, in each depositor's account at the beginning of each day. A depositor might overdraw his checking account if the bank did not keep this record for ready reference. All depositors' names are listed alphabetically in this ledger, surname first. Then follows the balance on the previous day at the close of banking business. This balance shows the amount deposited in that bank subject to the check of the individual depositor whose name is written opposite. All checks paid out by the bank during the day are listed separately and entered under item, checks, opposite the name of the depositor whose checks were paid by the bank. The total checks is listed next showing at a glance the total amount of money paid out of each depositors account that day. The deposits made by each individual are next listed showing the total amount to be added to each depositor's account after the total checks paid are subtracted. The individual deposit slips on which the depositor has listed each item separately are filed alphabetically for future reference as only the total deposits is necessary in this ledger. At the end of business hours the clerk in charge of the depositors' ledger subtracts the total checks paid out that day, from each individual account, and adds the total deposit made by each individual, thus finding the balance for beginning business the next day. Assume that you are in charge of the depositors' ledgers in 8 4 OFFICE PRACTICE the Second National Bank in your town or city, and work the following problem: Depositors' Ledger of The Second National Bank of Stamford, Conn. Name of Depositor Old Bal- ance A.M. 12/27/20 Checks paid Total Checks Deposits Balance Subject to Check (Next Day) 12/28/20 Aaron, David H. 1296.52 150.50 25-75 ? 85-50 ? Adamson, Henry L. 875-45 245-34 70.25 ? 1 20.00 ? Andrews, James H. 2145.89 158.45 234.85 35-25 ? 85.25 ? Bracken, Mary A. 4I53-65 2150.50 ? ? Brown, Charles D. 425.65 110.15 37.85 ? 35-75 ? Cooke, George H. 673.55 45.65 ? p Davidson, Frank S. I345.67 35745 25-36 ? 75.25 ? Edwards, Helen G. 183.65 45.63 10.50 5.64 ? 55-75 p Fallen, Lillian H. I575.65 34.65 5.87 56.90 ? 105.50 ? Faucett, George H. 546.67 .,- ? ? Groegan, Grace M. 75-68 23-50 ? ? Hogan, Williairt H. 1678.63 ? ? BANKING AND BUSINESS PROCEDURE 85 In bank ledgers the headings are repeated across the top of the book to avoid copying the names of the depositors every day. Assignment: Find the total checks paid by the bank from each depositor's account. Find the balance subject to each depositor's check at the close of business on the above date. Note: With the above data the bank could find 1. The total amount paid out, 12/27/20, on checks. 2. The total amount received on deposit, 12/27/20. 3. The total amount of money on hand subject to check accounts of depositors. The Auditor's journal of checks and deposits will illustrate this. 9/3%9 Auditor's Journal of Checks and Deposits Bookkeeper's Signature Old Balances Checks in Detail jDate Deposits Balance Depositors 876908.76 78654.88 9870.31 1326.54 106453.23 893510.26 Brought forward 475-29 35.19 45-00 50.00 (9/30/19) 10. oo 5.17 18.00 " 1.50 30 310.43 Sayer, A. C. 275.63 15.00 35.00 13.92 125.88 5.16 3.00 30 20.63 2500.00 2598.30 Seaman & Co. 750.02 25.12 18.00 25.00 . 4.50 3.80 7.92 75.17 25.25 50.00 5.00 9.99 6.45 1.50 2.00 30 490.32 Smith & Smith 3575.17 50.22 75.09 45-13 4-54 30 475.81 3876.00 Sterling Farm 350.93 4.12 3.62 5.00 25.00 50.95 30 262.24 Terry, C. E. 250.65 50.00 159.00 6.00 IO.O2 25.00 56.56 8.03 3.50 5.00 30 O.D. 72.46 Tilghman, R. A. 675-45 50.12 75.90 35.29 125.16 30 500.00 888.98 Torrey, H. & Son 525.53 76.66 8.54 4.56 30 435-77 Tourette J. J. 22856.34 180.00 56.98 9.99 25.00 45.00 30 22539.37 Unger & Thiel 550.55 76.67 45.45 56.23 25.00 50.50 18.00 5.00 30 273.70 Utterman, C. H. 375.62 50.00 125.82 56.87 86 OFFICE PRACTICE Auditor's Journal of Checks and Deposits Continued 4.50 5.60 8.90 30 1272.61 1396.54 Wagner Bros. 105.56 8.34 5-00 75.56 10.00 17.00 30 79-66 Wahl, M. A. 456.45 44.40 34.21 50.00 113.50 105.49 3-50 45-25 50.00 18.00 5-12 30 13875.00 13861.98 Warren & Son 10635.82 183-33 46.90 26.00 3.00 45-70 5.00 7.00 10.00 30 10308.80 Weil Co. 129.57 12.90 6.00 2.^5 85.00 9.82 6 70 2.50 ii. oo 25.00 30 852.47 820.37 Wheeler, O. J. 201.57 2.50 12.75 20.00 40.00 58.65 1.25 30 450.00 516.42 Wilson&Co.,R.B. 919188.91 80286.62 11163.15 2042.12 126399.75 952096.77 Totals Total ( 80286.62 Note: R. A. Tilghman has overdrawn his account, checks < 11163.15 Hib old blance is $250.65. They exceed his balance, paid { 2042.12 His checks in detail $323.11. Subject to check by 72.46. Verify on the calculating machines, the following: I The total of the old balance 2 The total of the checks paid out September 30, 1919. by the bank, according to the auditor's statement 3 The total deposits received on September 30, 1919 4 The total balance and the balance subject to the check of each depositor Elliott-Fisher Bank and Trust Co. Harrisburg, Pa. ACCOUNT No. 1945 NAME R. B. Woolson & Co. ADDRESS 2592 Third St., City. Old Balance Checks in Detail Date 1919 Deposits Balance Depositor Balance brought Aug. forward 633.79 R. B. Woolson & Co. 633.79 12.75 125.50 i. 75 5-00 6 488.79 R. B. Woolson & Co. 488.79 8.72 45-32 13.97 21. OO .50 5.00 1.25 12 393-03 R. B. Woolson & Co. 393-03 25.76 31.00 1. 80 3.10 T 4 331-37 R. B. Woolson & Co. 331-37 15 200.00 531-37 R. B. Woolson & r Co. 531-37 125.00 24.35 18.76 23-70 3-40 5-00 8.75 -75 19 321.66 R. B. Woolson & Co. 321.66 5.00 12.50 1.75 12.75 5-00 1.25 27 283.41 R. B. Woolson & Co. 283.41 23-76 1.57 23.87 i.oo 15.89 2.34 12.30 .75 7.50 2.18 30 192.25 R. B. Woolson & Co. Sep. 192.25 13.45 2.50 16.72 3.67 76.20 .40 2 500.00 579-31 R. B. Woolson & Co. 579-31 120.00 13.50 1.25 6.10 4 438.46 R. B. Woolson & Co. BANKING AND BUSINESS PROCEDURE 87 Verification of the Elliott-Fisher Bank and Trust Co. Continued 438.46 IO.OO 8 428.46 R. B. Woolson & Co. 428.46 i-35 35.64 ioo. oo 23-80 1.50 8.70 2.IO 12 255-37 R. B. Woolson & Co. 255.37 12.00 13.56 I. 00 2.80 56.25 5.75 75 1-87 3-21 25-00 16 I33.I8 R. B. Woolson & Co. 133.18 125.00 5.00 18 3.18 R. B. Woolson & Co. 3.18 18 550.25 553-43 R. B. Woolson & Co. 553-43 32.75 25.00 1.75 3.56 8.75 28.75 1.67 22 451.20 R. B. Woolson & Co. 451.20 8.62 12.78 I20.0O 18.25 25 200.0O 491-55 R. B. Woolson & Co. 491-55 50.0O 1.64 I3.IO .60 24.35 26 401.86 R B. Woolson & Co. 401.86 5.00 12.75 18.00 17.10 2.37 1.85 7.45 52.87 .50 25.00 27 25.0O 283.97 R B. Woolson & Co. 283.97 34-50 TO.OO 5.50 1. 80 4.85 25.00 75 29 201.57 R. B. Woolson & Co. 201.57 2.50 12.75 20.00 40.00 58.65 1.25 30 450.00 516.42 R. B. Woolson & Co. The preceding account shows the transactions carried on by one depositor, R. B. Woolson & Company, with his bank. Find the following: I -The total amount of checks paid by the bank for R. B. Woolson & Company 2 The total deposits made by R. B. Woolson & Company 3 The balance, August 30, 1919, subject to check 4 The balance, September 30, 1919, in the Elliott-Fisher Bank and Trust Co., subject to the check of R. B. Woolson & Company. Reconciliation of Bank Balance When a person wishes to open an account with a bank in order to be able to draw checks against his deposit in that bank, unless he is personally acquainted with the officials of the bank, he is introduced by a friend or another customer of the bank, or he must submit letters testifying to his character and financial reliability. He is then required to fill out a card similar to the form shown below. This card and a signature card is filed in the records of the bank. The bank requires a signature card from each depositor so that his signature on checks or other com- 88 OFFICE PRACTICE mercial papers may be verified by the paying teller or any other bank official. On the form shown below the signature card and the card on which the name of the depositor, his business address, date of opening an account with the bank, and the nature of his business is given on one card, thus making it necessary to file this data only once. (MODEL SIGNATURE CARD) Name Business Address The following is my authorized signature for the SECOND NATIONAL BANK Date ....... .............. Business ...................... After the person has been accepted as a depositor of a bank he is given a check book, containing blank checks with at- tached stubs. No one is allowed to draw a check on a bank in which he is not a depositor. To avoid having a stranger pick up a blank check from the counter in the outer office of a bank and make out a check on a bank in which he is not a depositor, several banks have printed " Counter Check " in [TOP A8 MEMORANDUM t^j^f- -f f log^, < 8 4 4iK .28 11.62 Total Payroll $57-95 BANKING AND BUSINESS PROCEDURE 97 Currency Memorandum (Model) Bill and Specie Memorandum for the above Payroll. Name Total Wages $10 $5 $2 $i Soc 2SC IOC 5c 1C Anderson, Jennie Bracken, Helen Clark, Mary Davidson, Grace Edwardson. Alice 11.70 12.32 9-99 12.32 11.62 I I I I I I 2 I I I i i i I I I 2 2 I i i 2 4 2 2 (4) (i) (4) (2) (3) (3) (5) (2) (10) $40 Js $8 $2 $iX 75 SO ,0 ,0 Total currency ) . For payroll [ = SS7 ' 95 Pour fro bills One $5 bill Pour $2 bills Two $i bills Three soc pieces Three 2$c pieces Five toe pieces Two sc pieces Ten ic pieces Payroll memorandum for the bank when the money is inserted in the pay envelopes by hand. The total currency for the pay- roll equals $57.95: Four $10 bills, four $2 bills, three 50 cent pieces, five 10 cent pieces, one $5 bill, two $i bills, three 25 cent pieces, ten 5 cent pieces, and ten i cent pieces. If the payroll sheet is wide enough, the bill and specie memorandum may be extended from the side of the payroll. PAY ROLL SLIP THE FIRST-STAMFORD NATIONAL BANK DENOMINATIONS AMCUNT Hundreds Fifties Twenties Tens 4f> 00 Fives / J- Twos V g 00 Ones A J_ 00 j-o Halves ^3 / Quarters 3 z^_ -TO / o Dimes T Nickel. o2 Cents /o .. Total, *7 fj- 98 OFFICE PRACTICE (MODEL PAYROLL CHECK) No. 25 Stamford, Conn., March 21, 1921. FIRST STAMFORD NATIONAL BANK 51-108 Pay to Mary Johnson for Payroll or order Fifty-seven 95/100 Dollars #57 95/100 (Signed) Florence E. McGill, Treasurer THE McGILL COMPANY. Assignment on Payroll: 1. Make out the payroll for the following employees of The McGill Company, using as a model the payroll as given on page 96. 2. Find the total hours each employee worked this week. 3. Find the total wages due each employee. 4. Make out the payroll check and have the chief clerk sign it for the treasurer. He has power of attorney to sign checks. 5. Make out a currency memorandum for your convenience in making up the amount to place in each envelope. 6. Make out a payroll memorandum for the bank teller who cashes the payroll check. 7. Write each employee's name on a small pay envelope and write amount due in small figures in the lower left-hand corner. 8. When you receive the money from the bank, place in the envelope the exact amount stated in the lower left-hand corner, and give all the envelopes to the paymaster or chief clerk. BANKING AND BUSINESS PROCEDURE 99 List of employees of The McGill Company, hours per day, wages per hour: Name M T W T F S Price per hour Anderson, Jennie 8 6 6y 2 7 8 4 $ .30 Bracken, Helen 7 8 6 8 7 5 35 Clark, Mary 8 7 7 7 5 6 .28 Davidson, Grace 9 8 6 8 8 5 33 Edwardson, Alice 8 8 8 7 7 5 .40 Frank, Rebecca 7 8 8 9 6 6 .38 Galinsky, Rose 7 3 4 6 7 8 3K 5^ .42 Harris, Mabel 6 7X 8 8^ 8 4X 35 Iskowitz, Alice 8 7 7 8 7 5 50 Jacobson, Edith 7 7 7 7 8 6 .42 Kirby, Mary 6y 2 6 6 7 7 6 35 Lane, Theresa 5 6 6 7 7 4 25 McManus, Grace 8 8 8 8 8 5 .50 9. Complete the following payroll: Mon Tues Wed Thurs Fri Sat Total At Amount Due Anderson, Jane 8 8 8 7% 8K 8 34 Brenner, Mary 6 8 6 9 7 8 25 Carson, Clara 8 8 8 1% 6 8 46 Davis, Stella 9 9 8 9 8 7 45 Edwards, Emma 6 8 7 5 6 54 Frank, Alice 8 8 7 8 8 4 .28 Grant, Florence 6 8 9 9 9 2 75 Harris, Anna 4 7x<2 8 9 30 Irwin. Rose 9 4 8 cS 65 James, Grace 8 8 6 9 9 5 45 Kane, Bertha 9 4 7 7 8 .70 Lawrence, Laura 5 6 8 4 9 4 55 Morris, Alice 4 3 3 5 7 6 65 Nelson, Jennie 8 8 2 6 8 7 25 Olson, Mary 2 7 9 3 6 9 35 Pierson, Carrie 6 4 7M 9 9 IO 45 Quinn, Frances 9 8 4 8 7 8 30 Roberts, Helen 7 7 6 7 8 25 Samuels, Edna 4 S A 9 9 4 4 7 .60 Thomas, Esther 7 2 8 9 6 5 .70 Verify all results on the calculating machine. 10. Make out a deposit slip for the following items, listing each check separately: The bank deposit of The McGill Company for October i, 1921. 30 one-dollar bills, 4 two-dollar bills, I five-dollar bill, 17 fifty- cent pieces, 33 twenty-five-cent pieces, 41 dimes, 67 nickels, 125 pennies, 2 checks on The Second National, of Hartford, ioo OFFICE PRACTICE Conn., one for $25.75, and the other for $12.25; one check on The Corn Exchange Bank for $26.17, one on the New Haven, Conn., Third National for $32.45, and one on The Fidelity Title & Trust Co., Stamford, Conn., for $36.78. 11. Find the total amount of currency, the total amount of silver, the total amount of the checks to be deposited on the adding machine. 12. Make out the deposit slip on the typewriter, using carbon. File the carbon copy. Trade Acceptance The Federal Reserve Bank has defined a trade acceptance as a bill of exchange drawn by the seller of merchandise on the buyer of the merchandise for the purchase price of the goods and bearing on the face of the acceptance the signed acceptance of the buyer with the date and the place of payment of the bill. When a bill of merchandise is sold the person who sells it sends a trade acceptance with the invoice. This acceptance is TRADE ACCEPTANCE No ^ i STAMFORD, CpN*., 191 .... $ , . . .-.-> . . . after pay to the order of OURSELVES in conf cWnity with ^original ferms The oblation of theyacceprtdjr hereig arises! out of the purchase of goods from the drawer, maturity being companjUDr bankir's Office; iff the Xlpited;!:ates which he may designate purchase. The drawee may accept this bill payable at any bank, trust To Due .., i I-1-4- made out for the net amount of the merchandise, and also states the date of maturity. The buyer, unless he wishes to send a check, accepts the trade acceptance by writing across the face the date of acceptance, place where it will be paid at date of maturity, signing his name and address and returning it to the person from whom he bought the goods. When the person who sold the goods receives the acceptance he may retain it until the date of maturity or he may discount it BANKING AND BUSINESS PPuGKIJURK 101 at his bank exactly the same as he would if it were a promissory note. In this case Clare Conroy sold $45.00 worth of merchandise on account to J. C. W. Burch. The purchaser Burch accepted this trade acceptance and made it payable at the Albany Commercial Bank on June 21, 1918, by writing across the face of the acceptance: Accepted Payable at Albany Commercial Bank June 21, 1921 (signed) J. C. W. Burch. After writing the above across the face of the trade accept- ance he returned it to the person who sold him the goods, Clare Conroy, who then canceled the account, and in place of the account he entered the $45.00 in an acceptances receivable account. Before business houses began to use the trade acceptance they carried accounts sometimes for very long terms on their books. While a concern was carrying an account of merchan- dise sold on credit to another company, the latter had the use of the money that they owed the company from whom they purchased the goods on account, while the latter was carrying their account or name only, on their books. This often caused some houses to become almost bankrupt or to give up business, as they were often forced to pay their accounts within 60 days. Since the introduction of the trade acceptance by the Federal Reserve Banks, companies which sell merchandise on account and receive from their customers a trade acceptance, close their on-account sales into an acceptance-receivable account. They have the privilege of discounting these trade acceptances after they receive them, just the same as they would a promissory note. This gives the company which sells on account, a security for the account and does not lead to so many bad-debt accounts as in the old way of selling merchandise. Concerns using this trade acceptance plan also sign them for 102 OFFICE PRACTICE goods they buy from others, giving their creditors trade ac- ceptances. In this case they cancel their accounts with other concerns with a trade acceptance-payable account in place of simply a name account to show to whom they are indebted. i. Bought $75 merchandise from Henry Smith on account. Sold $50 merchandise to George Jones of Albany, N. Y., on account. George Jones accepted a trade acceptance for $50, payable in 10 days at the Corn Exchange Bank, Albany, N. Y., thus canceling his account. The McGill Company accepted a trade acceptance for the $75 from Henry Smith for merchandise bought from him on account, payable at the Irving National Bank, New York, in 15 days. George Jones paid his trade acceptance of $50. The McGill Company paid trade acceptance for $75 to Henry Smith. Merchandise George Jones Purchase Sales He owes Cancels by 75 on a/c Tr. Ac. 50 50 50 Henry Smith Cash We cancel We owe Rec. Paid by Tr. Ac. him on Jones Smith 75 a/c 50 75 75 Acceptance Payable 75 The McGill Co. paid the above amount to Smith and received the Trade Ac- ceptance marked PAID as a receipt. 75 They gave Smith a signed Trade Acceptance for the merchandise they bought on account from him. BANKING AND BUSINESS PROCEDURE 103 Acceptance Receivable 50 They received a signed Trade Acceptance from Jones for merchandise bought on account from them. 50 Jones paid them cash and they gave him his Trade Acceptance marked PAID by them as his receipt. Whenever a company sends a trade acceptance with an in- voice they send a letter of explanation. Form of Explanation: "Attached to the inclosed invoice you will find a trade acceptance which we ask you please to sign and return to us." A trade acceptance is a written acknowledgment of a pur- chase on the usual terms and a promise to pay the amount according to the terms. It does not impose upon the purchaser any additional obligation. The Federal Reserve Bank recognizes this form of trading as the most economical and scientific mode of transacting a credit business, and is recommending and urging its adoption by all wholesale houses. With this system in general operation one can buy mer- chandise cheaper, for he can, by this means, buy goods at the lowest cash price and then sell them on a closer margin of profit. Assignment: Make out trade acceptances for merchandise sold on ac- count during the month, and when the invoices are sent to customers, send a trade acceptance appended to each invoice. Write a letter stating that the company has decided to accept from each of its customers to whom it sells goods on account, a trade acceptance payable in 30 days. Send the letter to the mimeograph department and have a stencil cut and sufficient copies run off on the mimeograph. CHAPTER FIVE SALES AND PURCHASES BUSINESS had its first inception in the home. The customers of the tradesman were his neighbors. Business gradually ex- tended from the home to the immediate neighborhood and then to the towns and the nearby cities. As an example: a shoe- maker made shoes for the members of his own family in his own home; later he made shoes for the members of the families in his immediate neighborhood. He had then begun to special- ize, he being the shoemaker for the neighborhood, while other neighbors began to specialize in other trades. Later he became known as an excellent shoemaker and he began to make shoes for customers in the nearby towns. As his business increased he bought his leather and supplies in larger quantities, and as his customers did not pay him in advance for his work, he began to buy his leather on account, thereby having creditors or per- sons to whom he owed money. As years went on this artisan changed his plan of operation from working in his own home as the demand for his shoes increased. He began to desire a larger place in which to work and to obtain other men to assist him in making shoes. This desire for larger facilities for carry- ing on business led to the hiring of a small store or shop in which he and his workmen carried on the shoemaking business. With increased business facilities his customers and creditors increased. From the small store or shop his business extended until he opened a small factory where machinery and labor- saving devices were used in the making of shoes. He now had ideal conditions for increasing the output of his product. Through the medium of advertising which was made [ 104] SALES AND PURCHASES 105 possible after the invention of printing, he placed his product before the inhabitants of cities and different sections of his country. When he was making shoes for the families in his immediate neighborhood he was able to record the data of the sales of shoes on slips of paper or by making a memorandum in a note book, or he might even have trusted to his memory. He usually paid cash for his leather or else exchanged some- thing of value with another neighbor, who gave him dried hides or skins. When he extended his business to include several workmen and hired a small factory he could not continue to mem- orize the accounts and transactions with his customers and creditors any more than he could now continue to obtain new customers to purchase the output of his factory. He needed assistance both in keeping his account records and in selling his product. These problems led to the hiring of clerical assistants for his office work, and to the development of a sales force to travel throughout the country for the distribution of his manufactured goods. Transportation systems, steam and electricity, and the introduction of machinery and labor-saving devices both in manufacturing and office management became necessary. Salesmen were taught the methods of selling their product to the prospective customers, and were also instructed in the process of manufacture of the article they wished to sell, from the raw material to the finished product. Managers of salesmen and business executives who directed selling campaigns began to be an important factor in these large manufacturing businesses. Maps of sections visited by members of the sales force were used to check up the routes of the different members of the sales force; comparisons of sales showed the efficiency of the different salesmen; reports by each salesman showed the location of his customers' stores, the amount of business carried on; and his business standing among other men in his community. Everything connected with the present distribution and 106 OFFICE PRACTICE selling of manufactured articles holds the attention of all large business concerns. Merchandise Sales Salesmen's Orders The McGill Company has a number of salesmen on the road obtaining orders for merchandise, which includes groceries, flour, and grain. It receives orders from customers by mail and direct from salesmen, on which are recorded the necessary data for the files and records. A model of each kind of order follows : Note: See Sale of Goods Act 1893 in Chapter Ten. (MODEL No. i) #43 Salesman's Order. Date Sept. 12, 1920. Salesman Henry Bracken To Whom Sold McNulty & Bros., Frankfort, Kentucky Terms On account How delivered. Via American Express Remarks 3% Discount. Inclosed is their interest-bearing note, $1000, to apply on account. Balance sub- ject to a Sight Draft, or will send check in 10 days. 50 bbls. N. S. Flour 30 " Searchlight Flour 5 G. Sugar 3 Potatoes 3 cases Quaker Oats 6 half chests Old Rose Tea 3 mats Java Coffee 4 bbls. Apples SALES AND PURCHASES 107 (MODEL NO. 2) Sales Order Sent by mail (Letterhead of Firm on Letter) Hartford, Conn., Sept. 9, 1920. The McGill Company. Please deliver at once: 25 bbl. #45 Potatoes 50 boxes #16 Cloves 10 cases Hecker's Oats 5 half chests English Breakfast Tea We are inclosing our check #75 for $550, to pay the balance on our bill of August 15. You may allow this order of September 9 to remain on account. Please state the terms of discount you will allow us if we send check within ten days, and oblige Yours truly, Frederick Mac Kee, As/Mac K Manager. Assignment: Take the 10 sales slips sent in by the sales force from the envelope containing the commercial papers and record the following facts: In recording the amount of merchandise sold, estimate 25% less than the current market price for each article sold. Make up a price list. 1. Make out invoices on the typewriter or the billing ma- chine (original and carbon copy) for the customers. 2. File the carbon copy alphabetically or geographically. 3. Send the original bill to the bookkeeping department or outgoing mail department. (Blank invoices are in the com- mercial papers envelope.) 4. From all the orders received from the salesmen in to- day's mail, devise a suitable selling price list and enter the ex- tensions (number of articles, times the price per article). io8 OFFICE PRACTICE Verify these extensions on the calculating machines. On a 3" x 5" card, enter the following data for each customer: Name of the customer Address; city, town, and state Merchandise sold Total amount of the sale 5. On a 3" x 5" card enter the following data for each salesman: Name of salesman Date of the sale Amount of the merchandise sold Name of the customer to whom this merchandise was sold Address of the customer 6. File the first cards alphabetically in the card index drawer marked "Customers." 7. File the second cards alphabetically after the guide cards containing each salesman's name. Arrange these cards ac- cording to the date of the sale, having the latest date card No. i, at the front of the filing drawer or cabinet. (MODEL) Customer's Card Name of Customer Address TOTAL AMOUNT DUE THE FIRM List of Merchandise and Selling Price (MODEL) Salesman's Card Franklin, James Salesman Ziegler, Joseph Nov. 2, 1920 Akron, Ohio Merchandise Sales $50.75 (Customer) SALES AND PURCHASES 109 Local Map of Your Town or City Using a local map, enter the following data for the use of buyers who may visit the main office and may desire any information as to transportation or places of local interest. Different colored glass top pins may be used. In the case of transportation lines, colored thumb-tacks may be used, using a plain color as blue for all local stations, and a bright red thumb-tack for the express or the important stations. Trace the following on your local map: The different lines of subway or surface cars, indicating local and express stations. State transportation lines passing your local railroad station. Indicate the transportation lines passing the leading hotels. A different color thumb-tack could indicate hotels. Locate points of interest to visitors in your city or town. If your town is a manufacturing town, indicate the location of the factory or salesroom of this special industry by placing a small picture or piece of the article manufactured, on the map. Yale and Towne Manufacturing Company could be indicated by placing a Yale Key or a picture of their burglar-proof lock on the point of location of their plant. Interborough Map of the City of New York, Borough of Manhattan The Interborough Map of the City of New York may be used in an Office Practice class in this manner: Trace the different lines of subway, elevated, and surface cars, using different colored yarn for each. State the station at either end of each line. State the important stations on the express line of the Broadway, Seventh Avenue, Lenox, and Lexington Avenue subway lines. Name the transportation lines passing Grand Central Station, Madison Avenue and 42nd Street and the Pennsylvania Station at Seventh Avenue and 33rd Street. Name the nearest transportation line and the station of the subway or the elevated line at the Martha no OFFICE PRACTICE Washington, the Pennsylvania, the Astor, the Belmont, and the Commodore hotels. Salesmen's Daily Report to the Home Office While En Route Some companies require each of their salesmen while en route throughout the United States to send a daily report to the main office, in order to give full credit to each of the sales- men for the goods sold, in recording records in the Bonus De- partment, and to know the total merchandise sales. Reports are sent on a form similar to that given below: Date: Salesman: THE McGILL COMPANY Salesman's Daily Report nr /"" ** D 1 *.' o Sales made h y Mr 1 owns or Cities visited ropulation State Cash Sales Sales on Account i 2 Name of Dealer visited Street Address Town or City Credit standing of this dealer in the Dun and Bradstreet Business Directories 2 3 Daily Sales Use the Clerk's Daily Sales Sheets to check sales. Verify the work on the Listing or Non-Listing Machines. On a master sheet called the Sales Sheet, the daily sales of several saleswomen have been listed. The total sales of the SALES AND PURCHASES in saleswomen for the week, or the total sales for each day of the week, may be found from this sheet. Assignment: 1. Find the total sales for each day, by vertical addition. 2. Find the total sales for the week. 3. Find the total sales of each saleswoman for the week by horizontal addition. A record of this is kept by some houses that allow a premium for all sales made over a certain amount or over the average sales of that person. They also keep a record of sales by individual salespeople as a test of the efficiency of the sales force of the company. Add horizontally and vertically in order to verify the cor- rectness of the amount of sales in the following: Sales Sheet Daily Sales for the Week Ended December 10, 1921. Total Name Mon. Tues. Wed. Thurs. Fri. Sat. per Week Anderson, J. I35-65 87.65 156.78 85-46 73.56 I34-56 ? Bracken, Mary 4576 198.67 45-90 123.78 1356.00 56.89 I Carney, Anna 234.78 78.09 256.78 89-45 780.67 355-78 ? Darrow, Jennie 89.67 H5.78 99-70 45.00 67.90 250.68 ? Farrell, Alice I45-50 88.34 190.00 34S-78 256.00 78.00 ? Fallen, Kate 76.00 95-45 78.45 87-34 99-75 I45-23 ? Harris, Lilly 234-56 78.45 2345.90 16745 780.40 347-89 ? Jenkins, Rose 98.76 9.60 456.79 89.57 345-79 568.90 ? McMahon, Nellie 87.56 58.70 87-45 245.78 88.80 465.78 ? Richards, Helen 456.78 67.90 67-45 567.80 199-75 234.00 ? ? ? ? ? ? ? ? Note: In order to make out this master Sales Sheet, the individual sales slips are alphabetized daily, and the total of the individual sales and the total sales are obtained by addition on an adding machine. The sales of any department may be obtained in a similar way. Alphabetize the sales slips from each department and then arrange the total slips according to the desired department, and add on any machine. ii2 OFFICE PRACTICE Merchandise Purchases In the bookkeeping classes all the merchandise purchases are entered in either the purchase book or are pasted in an invoice book after they have been checked by the receiving department. Purchases are not to be entered in the purchase book. File all invoices. This method is better as the invoices may 'be arranged for filing either alphabetically, numerically, or geo- graphically, and in this way may be referred to quickly. In- stead of entering invoices in the purchase book, make out a 3" x 5" index card. Keep all the necessary data on these cards as these may be referred to quickly and the total purchases found as in our purchase book. After the receiving department of the concern has checked and marked O. K. the items on the merchandise-purchase in- voices which have been received from the people to whom we owe money for merchandise which we have purchased from them on account, we must verify the extensions on the calcu- lating machine. The extensions are the cost per article which is always written or extended into the money column. In order to verify the extensions it will be necessary to multi- ply the cost of an item by the number of items purchased, as 254 barrels of flour at $9.85 a barrel, extension $2501.90. After the extensions are verified, add the cost of each item purchased, to find the total purchases. This will verify the mer- chandise-purchase account in the general ledger, or it will verify the invoice book in the accounting department. If the invoices are filed alphabetically use the method for alphabetizing and then file them in the alphabetic file for in- voices, using an individual folder for each creditor. If they are filed numerically consult the alphabetic card index, and in the upper left hand corner you will find the file number on each creditor's card. Enter this file number in the upper right hand corner of each invoice and draw a circle in SALES AND PURCHASES 113 red pencil around the number, making it easier for the file clerk to file. If they are filed geographically, arrange them according to state, city, or town. The invoices from each city, town, or district are filed back of the guide card bearing the name of the state in which the city or town is located. In filing these invoices always have the latest date toward the front of the folder, as everything should be filed with the latest date at the top for easy reference. At the beginning of business hours of each day obtain from the bookkeeper all the invoices of the previous day. Obtain index cards, 3" x 5", from the supply department similar to the ones used in the desk tickler box. After a set of cards has been made out always examine the cards and then make out new cards for new creditors, and make all future entries on the cards in the invoice card index. Refer to the list of creditors for the numbers (for filing). Enter the necessary data on the cards from all merchandise purchase invoices. (MODEL CARD) No. 45 McClurg, A. C. & Co. 215 Wabash Avenue Chicago, 111. Invoice of March 2, 1920. . . Gross amount due Terms Less Discount Due Date Net Amount Due Paid in Cash or by Check on These cards may be filed either numerically or alphabeti- cally. As illustrated, McClurg, A. C. fcf Co., will always have the numeric file number of 45, and all their invoices will be filed behind the numeric guide card #45, while the invoices in the folder will be arranged according to the date of the invoice, the latest at the front of the folder. ii4 OFFICE PRACTICE These cards may also be placed in the follow-up file between the date of the month on which the invoice falls due, and the date on which we wish to pay it in order to receive a merchan- dise discount. After the invoice has been paid it may be trans- ferred from these files to a transfer drawer or box for future reference. Assignment: 1. Make out a card for every new creditor. Enter the neces- sary data on the cards for the regular customers from all invoices received to-day. (See invoices received from creditors in the envelope containing commercial papers.) 2. File each card in the follow-up file. After they are paid, transfer them to the transfer file, alphabetically. 3. If paid within 10 days make out a check, and the neces- sary data on the stub of the check. 4. Take the merchandise purchases from the commercial papers envelope and file them alphabetically in your vertical filing cabinet. Note: For Bill of Lading, Warehouse Receipt and Freight Bill read Section Seven in Office Training for Stenographers, by Rupert P. SoRelle. CHAPTER SIX THE TELEPHONE THE speaking telephone was born June 2, 1875, in the attic rooms of the Williams Building, 106 Court Street, Boston, Massachusetts. Alexander Graham Bell, and his assistant, Thomas Watson, were experimenting and testing some modifi- cations of Bell's harmonic telegraph, a device by means of which, utilizing the laws of sympathetic vibrations, Dr. Bell expected to send six or eight Morse messages on a single wire at the same time, without interference. The essential parts of both transmitter and receiver, of this telegraph, were an electric magnet and a flattened piece of clock spring. The spring was clamped by one end to one pole of the magnet, and had its other end free to vibrate over the other pole. The transmitter had, besides this, make-and-break points like an ordinary vi- brating bell which when the current was on, kept the spring vibrating in a sort of nasal whine, of a pitch corresponding to the pitch of the spring. When the signalling key was closed, an electrical copy of that whine passed through the wire and the distant receiver. On this particular day Mr. Watson had charge of the trans- mitting ends, and Dr. Bell, in the other room, was retuning the receiver springs one by one. What happened on that memor- able afternoon is best described in Mr. Watson's own words: "One of the receiver springs I was attending to stopped vibrating and I plucked it to start it again. It didn't start and I kept on pluck- ing it, when suddenly I heard a shout from Bell in the next room, and then out he came with a rush, demanding, 'What did you do then? Don't change anything. Let me see!' I showed him. It was very [us! n6 THE TELEPHONE 117 simple. The make-and-break points of the transmitter spring I was trying to start had become welded together, so that when I snapped the spring the circuit had remained unbroken while that strip of magnetized steel by its vibration over the pole of its magnet, was generating that marvelous conception of Bell's a current of elec- tricity that varied in intensity precisely as the air was varying in density within hearing distance of that spring. That undulatory cur- rent had passed through the connecting wire to the distant receiver which, fortunately, was a mechanism that could transform that cur- rent back into an extremely faint echo of the sound of the vibrating spring that had generated it, but what was still more fortunate, the right man had that mechanism at his ear during that fleeting mo- ment, and instantly recognized the transcendent importance of that faint sound thus electrically transmitted. The shout I heard' and his excited rush into my room were the result of that recognition. The speaking telephone was born at that moment. Bell knew perfectly well that the mechanism that could transmit all the complex vibra- tions of one sound could do the same for any sound, even that of speech. That experiment showed him that the complex apparatus he had thought would be needed to accomplish that long-dreamed result was not at all necessary, for here was an extremely simple mechanism operating in a perfectly obvious way, that could do it perfectly. All the experimenting that followed that discovery up to the time the telephone was put into practical use was largely a matter of working out the details. We spent a few hours verifying the discovery, repeating it with all the differently tuned springs we had, and before we parted that night Bell gave me directions for making the first electric-speaking telephone. I was to mount a small drumhead of gold beater's skin over one of the receivers, join the center of the drumhead to the free end of the receiver spring and arrange a mouth- piece over the drumhead to talk into. His idea was to force the steel spring to follow the vocal vibrations and generate a current of elec- tricity that would vary in intensity as the air varies in density during the utterance of speech sounds." Mr. Watson followed these directions, and the instrument was ready for trial the very next day. It was but few days later that Watson heard the familiar voice of Dr. Bell come over the wires which were connected to his work-bench on the third floor of the Williams' shop, saying: "Mr. Watson, please come here, I want you." n8 OFFICE PRACTICE The introduction of the telephone into the business and social life of the nation was a difficult task. At first the public was skeptical, but gradually the more progressive business men began to see the practicability of a device such as the telephone, FIRST TELEPHONE so that by May, 1877, the first telephone switchboard was in- stalled in the office of E. T. Holmes, in Boston, connecting with five banks. In the fall of 1877 the first real telephone exchange was established in Bridgeport, Connecticut, and New York City saw its first telephone company organized on August 3ist, 1877. On the morning of August 5th, 1877, the New York "Sun" surprised its readers with the news that "there are five tele- phones in practical working order in New York City." These telephones were: THE TELEPHONE 119 From Charles A. Cheever's office in the Tribune Building to: 1. The Champion Burglar Alarm Company, 704 Broadway, 2. The Law Telegraph Office, 140 Fulton Street, 3. Dickerson & Beaman, Lawyers, Staatz-Zeitung Building, 4. S. J. Burrell, a maker of telegraph supplies, located on Broad Street, and 5. From J. L. Haight's office at 81 John Street to his wire plant at South Brooklyn. None of these was a paid-for line, except the last. In New York City to-day there are 900,000 telephones operated through 100 exchanges. There are more telephones in New York City than in any two other cities in the United States combined. Instead of a few miles of wire, as there were in 1877, there are now over 5,500,000 miles of wire in the telephone system in New York City. The employees of the New York Telephone Company in New York City total approximately 30,000. The telephone-using public make over four and a quarter million local calls daily. How to Use the Telephone The assignment of answering the telephone in a busy office usually devolves upon the typist or the stenographer. To fill this position efficiently the necessary requirements are good manners, a quiet, clear, distinct speaking voice, and the ability to use correct English and pronunciation when talking over the telephone. Every time one telephones he unconsciously reveals his char- acter and the character of the company with which he is con- nected. First impressions are often very lasting. The way one answers a telephone call shows the other person what kind of service he may expect from that individual or company. When at the telephone you are your firm; its reputation is in your keeping. Before making a call always consult the telephone directory 120 THE TELEPHONE 121 to make sure to call the right number; if the number is not in that book ask for "Information." Speak clearly and distinctly directly into the transmitter, holding your mouth about one inch distant from it. As a means of demonstration, use small toy telephones similar to those sold in the 5 and 10 cent stores or any toy shop. One student representing the central office will stand at the rear of the room. The student representing the office of The McGill Company will stand at the right-front end of the room, and the student representing the office either calling us or the office we are calling, will stand at the opposite left-front side of the room. If a school has a dummy switchboard installed for the use of the students in the office practice class, the switchboard may represent the central office telephone exchange. In this case a desk telephone placed on the filing cabinet at the rear left of the room may indicate the office telephone to be used for the outgoing calls. A desk telephone placed on the filing cabinet at the rear right of the room may indicate "any office" outside of the office-practice classroom, and may be used by the students who desire to send messages to The McGill Com- pany as indicated in the text. How to Call a Number on the Telephone When giving a number to the operator state (i) the name of the central office wanted; (2) each figure of the telephone number; (3) the party-line letter, if there is one. Numbers which are even hundreds or even thousands should be given as such instead of each figure being given separately. SAMPLES: CAN al 0027 "Canal oh-oh (pause) two-seven." JOH n 1253 "John one-two (pause) five-three." MAI n 2125-} "Main two-one (pause) two five Party J" BRO ad 4800 'Broad four-eight-hundred" WOR th 5000 "Worth five-thousand" 122 OFFICE PRACTICE Mr. Harris asks his stenographer to call Mr. Stewart to the telephone. Let us assume that Miss Green is Mr. Harris' stenographer, and that Miss Blank is the stenographer for Mr. Stewart. Miss Green upon ascertaining Mr. Stewart's correct tele- phone number lifts the receiver from the hook. Instantly an electric current passes over the wires to the central office, and causes a light to glow on the switchboard in front of the operator. That light notifies " central" that a call is desired on that particular line. Accordingly she sets up her connection and says, "Number, please?" (using the rising inflection). Miss Green: "Lenox 5748 (making a slight pause between 57 and 48). Operator at the central office: "Lenox 57 (pause) 38". Evidently Miss Green did not speak distinctly as central mis- understood the number. Miss Green: "No, operator, Lenox 57 (pause) 48." Operator at ihe central office: "Beg your pardon, 57 (pause) 48" confirming the call which central always does in making a tele- phone connection on an incoming call). Miss Green: "Yes (or right) please." Thus central establishes the telephone connection with the telephone exchange in which Mr. Stewart's telephone is listed, the Lenox Exchange. While you are waiting for the called number to answer, the intermittent burr-r-ring sound of the ringing signal will indicate that the work of putting up the connection has been performed by the operators concerned. The switchboard operator of the company in which Mr. Stewart's office is located receives the signal of an incoming call and connects the telephone in his office with the Lenox Exchange. Miss Blank: "Stewart & Co., Miss Blank speaking." Miss Green: "This is Harris & Co., Miss Green speaking. Mr. Harris would like to speak with Mr. Stewart, please." Miss Blank: "Just a minute, please." (Miss Blank then tells Mr. Stewart that Mr. Harris wishes to speak to him over the telephone.) 123 i2 4 OFFICE PRACTICE Voice of Mr. Stewart over the telephone: "Mr. Stewart speaking." Miss Green: "Just a minute, please." (Miss Green tells Mr. Harris that Mr. Stewart is ready to speak with him over the telephone.) Voice of Mr. Harris over the telephone: "Mr. Harris speaking." Conversation between Mr. Stewart and Mr. Harris continues. Call completed. Mr. Harris and Mr. Stewart both hang up their receivers on their respective telephones. If a switchboard is used, the opera- tor in each of the above concerns notices from a signal on her switchboard that both parties have completed their conversa- tion. The switchboard operator then disconnects with the central telephone exchange thereby notifying "central" that the party who called Lenox 5748 has completed his conversation. Where no switchboard is used, "central" receives the same signal when the receiver is replaced on the hook. Note: The best business practice is to name individuals using the telephone instead of "stenographer," "bookkeeper," "secretary," etc. Important Points Concerning the General Telephone Directory, the Classified and the Suburban Directory 1. All names are arranged thus: Surname, first name, initials, business address, the telephone exchange and telephone number. For example: O'Mara, John A. & Co., Advertising Agency, 225-51!! av, MAD Sq.- 9850. 2. In the case of a residence telephone the directory indicates this information by inserting a small "r" between the name and address. 3. The titles Mr. Miss, Mrs. and Dr. are printed after the surname. For example, Harrison, John, Dr. 4. All city departments are listed under the title "City of New York." For example, Mayor, Office City Hall, Cortland-iooo. THE TELEPHONE 125 5. Apartment houses are listed under name of Apartment House, or where they have no name are listed under "Number." This is convenient because if one knows the Number of an apartment house, it is easy to find the telephone number listed under "Number." For example, 611 West I4ist Street is listed under "Number" and is AUD ubon-648o. 6. All public schools in New York City are listed under "Education, Board of." For example, Julia Richman High School 60 W 13, CHE lsea-4478. The different annexes of this school are listed under the name of the Main Building. For example, Annex PS 9 225 W 82 St, SCH uyler-8437. 7. Branches of businesses are listed in the same manner. 8. Hospitals are listed under "Hospitals" and in addition may be found under the name of the particular hospital, as St. Vincent's Hosp., 7th av & n, CHEL 863-4050. 9. Names beginning with "Mac," "Me.," "O" and "Saint (St.)" are listed in strict alphabetical order. 10. The Telephone Company issues two kinds of directories New York City and Suburban. A Classified Telephone Directory is also issued, but this directory is published by the Reuben H. Donnelly Corporation with the author- ity and cooperation of the New York Telephone Company. 1. The New York City Directory contains: A. (i) Advertisers listed before the names of subscribers. (2) General information about the use of Long Dis- tance Tolls. B. An alphabetical list of telephone subscribers, busi- nesses, addresses, and telephone numbers. 2. The Suburban Directory contains lists of subscribers in near-by towns, alphabetically arranged for each par- ticular locality in the same manner as applied in the City Telephone Directory. 126 OFFICE PRACTICE 3. The Classified Directory contains an alphabetical list of all classes of business subscribers in the city and a list of companies, with the businesses, address, and the telephone number. Local calls are charged at the rate of five cents, and the speaking period is assumed to cover a conversation of five min- utes' duration. In cases where long conversation are continu- ally held over any one particular line, the Company reserves the right to charge overtime on such calls. Suburban calls are charged on the basis of five minutes with an additional charge for overtime. Long distance calls have a minimum charge of three minutes and an additional charge for each minute thereafter. To facilitate sending telegrams and cablegrams, telephone users should call by name for the Western Union Telegraph Company or the Postal Telegraph Cable Company. The Telephone Company issues new directories every Febru- ary, May and October. The old directories are taken up by the Company at the time of the delivery of the new books. An emergency call may be made as follows: Call the central office and say: "I want to report a fire." "I want a policeman." "I want an ambulance." If compelled to leave the telephone before central or the station answers, tell the operator where help is required. No charge is made for such calls. Special Information Concerning the Use of the New York City Telephone Directory You will immediately notice two striking changes in the style of printing the listings in this book. The first three letters of all central office designations (except those in Staten Island) have been capitalized in black Gothic THE TELEPHONE 127 type and separated from the rest of the name by a small space. Example, Wadsworth is printed WAD sworth. All the line numbers which were below 1000 in the last direc- tory have been changed by prefixing enough zeros to build each number up to four digits. Example, Melrose 19 is printed MEL rose-ooi9; Prospect 178 is printed PRO spect-oi78. These changes were necessary in preparation for the intro- duction of machine switching central office apparatus in New York City. In the near future subscribers in certain exchange areas may be provided with instruments equipped with dials for use in making local calls by the machine switching method. These subscribers will be able to make all local telephone calls without the aid of an operator. They will dial the first three letters of the central office name and a number with at least four numerals. It is for the benefit of the subscribers who will use the new equipment that the style of printing the Telephone Directory has been changed. The three letters which must be dialed are made to stand out clearly from the rest of the central office name so that it will be easy to determine just what letters to dial. In calling with the new machine switching apparatus, the subscriber will dial the first three letters of the called central office name and the number which must consist of at least four numerals. That is why all line numbers which were composed of less than four digits (numbers below 1000) had to be built up ,to four digits by prefixing the initial zeros. As long as you continue to be served with the manual type of instrument such as you now have, you should pay no atten- tion to the new style of printing central office names in the Telephone Directory. For example, the fact that Wadsworth is printed WAD sworth makes no difference in the pronuncia- tion of the word. In giving numbers to the operator you should continue to pronounce central office names in full as you do now. Zeros that have been added to line numbers formerly con- 128 OFFICE PRACTICE taming less than four digits must be given as part of the new numbers but not as "zero." As heretofore, zeros will be pro- nounced "oh." If you wish to call WAD sworth 0078, for example, you will say "Wadsworth oh-oh (pause) seven- eight." If your telephone number has been changed by the introduc- tion of one or more initial zeros be sure to include the zeros as part of your number when giving it to an operator or to any other person. Subscribers who will be served by the machine switching system will be given individual instructions in the use of the equipment before the new system is placed in service. Assignment on the Use of the Telephone, and Looking Up Telephone Numbers in the Telephone Directory: 1. Call the National Bank Safe Deposit Company of your city and arrange for renting a safe deposit box for The McGill Company. Note: Numbers containing three ciphers are read as thousands. For example: Murray Hill-8ooo eight thousand; Murray Hill-5ioo five-one hundred. 2. I want to telephone to Mrs. Harris who lives in the apartment house at 611 West I4ist Street. I have for- gotten the number of her telephone. Where shall I look in the general telephone directory to find it? 3. The telephone number of the Underwood Typewriter Company, repair department, is Barclay-89OO. Explain how to call this number and ask that a repair man be sent to The McGill Company to repair the Underwood typewriters in Room 509. 4. Look up the telephone number of the Julia Richman High School. 5. An accident has just occurred across the street. Sena in an emergency call to the nearest telephone exchange. THE TELEPHONE 129 6. Send out circular letters to retail dealers who are inter- ested in flour, grain, and fruit. How will the telephone directory assist you in compiling the mailing list? 7. Call the leading advertising agent of your city and tell the manager that The McGill Company wishes to arrange for advertising in the middle-west newspapers. 8. Call the National Biscuit Company, General Offices, Sales Agency. Tell the manager we desire an interview with one of their salesmen. 9. Get the information bureau at your local railroad on the telephone. Ask when the express for Chicago leaves and reserve a Pullman seat for Mr. Smith. 10. I left an umbrella on the 8.15 express from New Haven, Conn., Saturday morning. Call the lost article depart- ment at the local railroad station and make inquiry about a black silk umbrella. n. The School Magazine is to be issued on Wednesday. Telephone to the publishers and ask for the manager of the printing department, stating that we wish 200 copies sent to the school. 12. Make out a memorandum of the names, business addresses, and the telephone numbers often men in your city who are in the following businesses: Advertising, Grocers, Fruit Dealers, Plumbers, Accountants, Architects, Attorneys, Bankers, Detective Agents, Managers of Hotels, Dealers in Automobile Accessories and Supplies, Chemists, and Dealers in Electrical Supplies. (Use the Classified Directory.) 13. Call the Mayor of your city on the telephone and invite him to make an address at the assembly in your school on a patriotic subject. 14. Telephone to the office of the Superintendent of Schools and ask why the textbooks ordered last month have not been delivered at your school 15. Call the President of the Board of Health on the tele- 1 30 OFFICE PRACTICE phone. Invite him to address the assembly in your school on the subject of Hygiene. 16. Make a memorandum of the telephone number and the address of the manager of your local theater, five mem- bers of the local fire department, ten members of the local police department, and four well-known doctors and five lawyers. 17. We received word from one of our creditors that mer- chandise ordered from them had been shipped to us by parcel post. Call the local postmaster on the telephone and make inquiry, as we have not received the merchan- dise. 1 8. Get the manager of the local Victor Talking Machine Company firm on the telephone. We want a repair man to examine the mechanism of our school Victrola. 19. Telephone the editor of your local newspaper and ask him to send a man to report the debate which is to be held at the school on Friday evening between the Senior and Junior Debating Societies. 20. Call the leading grocer of your city, ask for the manager. Make an appointment with him for our salesman to call at 3 P.M., or at any hour that is convenient to the manager. Make a note on a small sheet of paper of the hour of the appointment, and place the memorandum on the desk of the chief clerk. 21. Get the Western Union Telegraph on the telephone and ask them to send a messenger to your school. 22. Look up the telephone number of the tax collector. Make an appointment for him to call me up as I wish to speak with him in reference to my tax bill. 23. Call the bureau of information at the local railroad station, and find out if the 8.10 express has a through sleeper to Boston, Massachusetts. 24. Telephone the local railroad station and inquire when the next express leaves for Washington, D. C. Have a THE TELEPHONE 131 lower berth reserved for our salesman. Find out the time of the arrival of the express at Washington; get the number of the car and make a note of the information and place it on the desk of the chief clerk. 25. Telephone the American Express Company to call imme- diately for a package which you wish to send to Chicago. 26. Ask the local printing office to quote prices on 2000 letterheads printed on Bond paper, size 8j^"xii", for immediate delivery. 27. We are anxious to know if the site we are considering for our factory has a clear title. We shall place the searching of this title in the hands of the best law firm in your city. Telephone one of the members of a well-known legal firm and make inquiry concerning the subject in question. 28. We shipped a package of merchandise to Mr. Martin O'Connell at Chicago by the American Express Com- pany. There has been a delay in the delivery. Call the express office and make inquiry. Make a memorandum of the result of your conversation with the express com- pany and place it on the desk of the chief clerk. 29. We have reserved a room in the Hotel Dennis for one of our salesmen who was obliged to change his plans. Telephone the hotel at Atlantic City and cancel this reservation. 30. Miss A., one of our stenographers, had a book reserved at the Public Library. She received a notice stating the reservation will expire at 5 P.M. Telephone the Library and ask the Librarian to reserve the book until 5.30, when Miss A. will call for it. Reference Books Different business houses require different varieties of books of reference. Law firms generally have a large library of law books, while nearly all companies have directories and general 132 OFFICE PRACTICE reference books. If the stenographer desires to find the meaning of a word, the correct spelling, or the division of a word into syllables, he consults a dictionary. A buyer would likewise consult a classified directory or buyer's guide, as all business houses are listed under a heading describing their specialty. A large mail order house will have directories of cities and towns in the different sections of the United States as they give an alphabetic list of every resident, a map of the town, and a list of the officials. This data may be used in making up a mailing list. Social directories contain lists of prominent people, clubs, theater diagrams, and other miscellaneous information. Busi- ness magazines, credit rating books, almanacs, year books, postal and shipping guides and telephone directories are in general use in business. Detailed explanation of the telephone directory may be found in the chapter on the telephone. Credit rating data is furnished in book form by the Bradstreet Company and by R. G. Dun & Company to merchants who subscribe yearly for the service. The subscription also includes special reports on credit rating. The report is in code and states the investment, the estimated worth, the prospects of success in business, and whether the individual or company is slow or prompt in meeting obligations. The special reports contain reports from the bank in which a merchant is a depositor. These credit rating companies have an agent in each town or city who furnishes the necessary data for these reports. Alma- nacs and atlases usually contain a set of maps indexed by states, beside other valuable commercial information. In fact, all reference books do for the business man what a map does for the traveler. Previous to the publication of maps of the United States, the geographic knowledge of our country was taught by the old Indian warriors to the young men and the little Indian children by word-of-mouth, as the oldest and the most learned warriors knew the deer paths and the places where it was safe to cross dangerous streams within a few miles of the hunting grounds. THE TELEPHONE 133 Maps have replaced this system of geographic memory, and today almanacs and atlases contain much encyclopaedic infor- mation. Business men today need a source of ready reference more than the old Indian warrior needed the knowledge he possessed of a safe path through his hunting grounds. The important point today is not to have the desired information retained accurately in one's memory, but to know where to find the knowledge which one requires. Who's Who in America Among the books of general information used for reference in the business world are the well-known Who's Who in America and Who's Who in England. These books give a brief personal biography of living notable men and women in America and Great Britain. The data generally consists of the date of birth, parents, education, public or prominent positions held, occupa- tion or profession, and, in the case of writers, a list of the titles of books published. Assignment: The assistant manager wishes to obtain the following infor- mation: Consult Who's Who in America Theodore Roosevelt: Where was he born ? Where was the school of his childhood located ? What are the titles of some of the books he wrote? When was he made Commissioner of Police in the City of New York? On what date did he become President of the United States? Note: This information will be found in the 1918-1919 edition of Who's Who not in the later editions. Woodrow Wilson: When was he elected President of the United States for the first time? For the second time ? State the date of his election as Governor of New Jersey. When was he installed as President of Princeton University? State any interesting events which took place during his administra- tion as President of the United States. 134 OFFICE PRACTICE Warren G. Harding: What public office did he hold before his nomination for President? When was he elected President of the United States? State any interesting facts which have taken place during his admin- istration. Look up the name ot your favorite living American author and find his Age Place of residence Two interesting facts about his life Name some books that he wrote Make a memorandum of four important facts about each of the following business men: John D. Rockefeller Charles Schwab Rodman L. Wanamaker Charles W. Eliot Nathan Straus Lotus D. Coffman Thomas William Churchill Charles McMurry William L. Ettinger Richard Burton Henry Ford Brander Matthews William H. Taft William Lyon Phelps Calvin Coolidge K. M. Landis Franklin D. Roosevelt City or Town Directory Every city and some towns publish a city or town directory which contains the names of the citizens alphabetically arranged, a street guide, a classified business directory, a map of the municipality, and a list of the officials, churches, schools, socie- ties and corporations. The street guide has the streets alphabetically listed, the resi- dences and the places of business are designated by their street numbers and arranged numerically, a star opposite a name usually denoting parties having telephones. The city officials usually are: mayor, board of aldermen, treasurer, corporation counsel, collector of taxes, city engineer, THE TELEPHONE 135 health officer, milk and food inspector, building inspector, chief of police, and chief of the fire department. Donnelly's Red Book, or the National Buyers' Guide and Sales Catalogue, is published in the states of California, Con- necticut, Georgia, Illinois, Massachusetts, Michigan, Minne- sota, Missouri, New York, Ohio, Pennsylvania, and Wisconsin. The geographical section lists companies geographically, by state, town, or city, and alphabetically by material, products, and services. If one living near Detroit wishes to communicate with an Addressing Machine Manufacturing concern in order to install a mechanical mailing device, he will first find the classi- fication MICHIGAN in large black type; under Michigan he will find DETROIT alphabetically arranged; and then alpha- betically he will find Machines. Addressing Mfgs. Beneath this he will find the names, addresses, and the telephone num- bers of all houses manufacturing addressing machines. Assignment: Using your city or town directory, find the following: 1. The name of the mayor of your city; locate his office and his residence. 2. The name of the city treasurer and of the comptroller. 3. Locate the board of education's office. 4. Find the name and the address of the city superintendent of schools. 5. Find the name and the address of the principal of your high school. 6. Locate the address of the office of the board of health. 7. Find the name and the address of the health officer of your city. 8. Find the names and locate the offices and the residences of the members of the medical staff of your city hospital. 9. Look up the name and the residences of ten nurses in your city. 10. Locate the principal fire department of your city. 11. Name the chief of each fire company, stating his residence and his office. 12. Look up the following names in your city directory. Make a list of the names, the address, and the position of each person: 136 OFFICE PRACTICE a The chief customs official. b The manager of your local theater. c Ten members of the local police force. d Ten members of the local fire department. e Ten members of the common council or the law-making body of your city. f The postmaster and the assistant postmaster, g The letter carriers in your neighborhood, h The tax collector of your city. i The members of the board of assessors or the men who levy the tax rate in your city, j Twenty-five teachers in your school, k Ten lawyers, dry goods merchants, druggists, butchers, manufacturers, phonograph dealers, and grocers. 1 The editor of your local newspaper and the reporters, m The librarian of the local library and her assistants, n The manager of the telephone exchange, o The manager of the telegraph office. " p The ticket agent at your local railroad station, q The leading real estate agents of your city. CHAPTER SEVEN THE TYPEWRITER The business world today owes much of its efficiency to the invention of the typewriter. But for its invention business letters would still be written in longhand by expert penmen; carbon copies of outgoing mail could not be filed for future reference; bookkeeping machines would be unknown, as they use the keyboard of the modern typewriter; and the adding and calculating machines with a typewriter keyboard would be impossible. All these owe their existence to "The Father of the Typewriter," Christopher Lathan Sholes, who was born in 1819 and died in 1890, but had lived to see his invention used in practically every office throughout the world, and the old- fashioned pen, ink, and paper method beeome a thing of the past in modern business correspondence. To his patience in perfecting the mechanism of the first typewriter is due in a large measure the efficiency of every business office today. The letters above the key on the- keyboard indicate which hand is to be used to operate these keys. R indicating the right hand, L the left hand, the figures I, 2, 3, 4, which finger is to be used to strike the key. The figure i under R means that the keys u, j, m, and y, h, n are to be operated with the first finger of the right hand, and the figure I under L means that the keys r, f, v, and t, g, b are to be operated with the first finger of the left hand. The figure 2 under R means that the keys i, k, comma, are to be operated with the second finger of the right hand. The figure 2 under L means that the keys e, d, c, are to be operated with the second finger of the left hand. The figure 3 under R [137] 138 OFFICE PRACTICE means that the keys o, 1, period, are to be operated with the third ringer of the right hand. The figure 3 under L means that the keys w, s, and x are to be operated with the third finger of the left hand. The figure 4 under R means that the keys p, :, /, are to be operated with the fourth finger of the right L R SPACEBAR. hand. The figure 4 under L means that the keys q, a, z, are to be operated with the fourth finger of the left hand. To capitalize any letter of the alphabet or to write the characters ", #, $, %, , &, ', (, ), * the shift key must be depressed, and held down while the proper key is operated. The left shift key should be used to operate any key on the right side of the keyboard while the right shift key should be used to operate any key on the left side of the keyboard. Note: The Typewriter companies issue a hook of instructions in which all parts of the machine are fully explained and illustrated. The following directions are taken from RATIONAL TYPE- fTRITING Medal of Honor Edition by Rupert P. SoRelle: Position at Machine Assume a comfortable position directly in front of the machine. Adjust your chair so that when you are seated your POSITION AT THE MACHINE 140 OFFICE PRACTICE arms hang naturally at your side. The seat should be lowered so that the elbows are on a level with the top of the table, and the forearms parallel with the slant of the keyboard. Sit erect and place your feet squarely on the floor. Do not "slouch" down over the keyboard. Any movement of the body backward or forward should be made by using the hips as a hinge. The position at the machine is of the utmost importance. Place the hands over the keyboard with the little (fourth) fingers very lightly on the keys " ;" and "a." The fourth fingers should be kept hovering over these keys all the time when not striking other letters, and the position of the other keys, in the beginning lessons, located from these points. Adjust your chair that you may sit in a comfortable position, with your back resting against the back of the chair. The fingers curve grace- fully toward the keys. The keys are struck with the ball of the finger. The sight should be directed constantly toward the copy. It is seldom necessary to look at the machine, and it should never be necessary to look at the keyboard. How to Begin Place the hands over the keyboard, with the little fingers resting on the guide keys ("a" and ";"), and the third, second, and first fingers resting on the next three keys toward the middle of the keyboard on the same row. Practice placing the hands on the keyboard in this way and removing them repeatedly until the movements can be accomplished accurately without looking at the keyboard. With the hands placed on the keyboard in this manner, the first finger of the right hand will then be resting over "j" and the left first finger over "f." With these points fixed in mind, you can easily get the location of the other letters of the central division by consulting the chart. A little practice will enable you to locate "j" and "f" positively and quickly by merely placing the hands in position. After you have established the "feel" of the "j" and "f" positions, it will be well to practice the touch on these keys, striking first THE TYPEWRITER 141 "j" and then "f" with a firm, staccato touch, lifting the finger immediately. Practice these movements until you can strike the keys accurately and with an even touch. The next step is to learn to make the reach to "h" and "g," and to strike these keys with an even touch. Practice a few lines of the letters "jhfg" until you have the positions well fixed and can strike the keys firmly in the center. Then attack the upper row of keys, beginning with "u," which as you will see by the chart, is directly above "j." Practice passing from "j" to "u" a few times until you accustom yourself to the distance. Go slowly, deliberately. Make sure of your ground at each step by analyzing the movements. Next practice mov- ing from "u" to "y," then write the letters "juy" a few times. Then practice moving directly from "j" to "y." Proceed with the left-hand division in the same way, starting with "f" and working to "r" and "t," and so on. The bottom row of keys should then be learned in the same way. Afterwards practice a few lines of the different keys in vertical rows "ujm," "yhn," "rfv," "tgb." Then, to test your accuracy in judging distance, try passing from the lower row to the upper, and vice versa, writing "mu," "ny," "vr," "bt." Practice two lines of each vertical row of keys, thus: ujm, yhn, mju, nhy, rfv, tgb, vfr, bgt. All of these exercises should be practiced by touch. Keep your eyes fixed on the chart and not on the keyboard of the machine. You should now be ready for the formal work of the first lesson. The same method may be applied to learning the location of letters in the other divisions. P'ollow closely the fingering given on the charts; each finger must be confined strictly to its own territory. In this lesson all of the writing, it will be noted, is done with the first fingers. Make a complete copy of each exercise before starting an- other, even though you make some mistakes. Each exercise is planned to give a definite training. In order to get this training 142 OFFICE PRACTICE it is necessary to write all of the exercise each time you attempt it. Do not be satisfied with merely writing the exercise once, but repeat it until a complete mastery of the movements and the location of the keys is established. Inspect your writing at the end of each line in the first two or three lessons, so that you may note any unevenness of touch and correct it in the next line. After you have made sure that your touch is correct, discontinue inspecting the writing. Do net attempt to correct misprinted letters until you get your fingers under control. Naturally, you will strike the wrong letter occasionally. The work of this lesson is not com- plete however, until you make a correct copy by touch. Note: All keys are struck with the FIRST finger. OOO(M)OOOO oo@\ooc oooooo SPACEBAR. First Exercise Practice the following combinations until the location of each key is memorized: jhfg fgjh jhfg fgjh jhfg fgjh jhfg fgjh jhfg fgjh jhfg fgjh jhfg fgjh jfhg fjgh jfhg fjgh jfhg fjgh jfhg fjgh jfhg fjgh jfhg fjgh jfhg fjgh juyj frtf kuyj frtf juyj frtf juyj frtf juyj frtf juyj frtf juyj frtf jmnj fvbf jmnj fvbf jmnj fvbf jmnj fvbf jmnj fvbf jmnj fvbf jmnj fbvf THE TYPEWRITER 143 Second Exercise Repeat each line of the exercise until rhythm and speed are secured. jug jug jug jug jug jug jug jug jug jug jug jug jug jug jug jug jug jug but but but but but but but but but but but but but but but but but buy buy buy buy buy buy buy buy buy buy buy buy buy buy buy thumb thumb thumb thumb thumb thumb thumb thumb thumb thumb Third Exercise Repeat each line several times, writing rather deliberately but in rhythm. jug fur but fun buy turn thumb truth rug gnu urn tub numb untruth thug jury nut hug bun mug huffy hubbub burn funny murmur grum burr hymn rut rung nutty hungry brunt hung unhurt turn gunny hurry grub bug tug hunt gummy turf thrum grub ruff ruby hurt tuft runt unhung numb humbug fury Words of High Frequency The words of high frequency are to the typist what the word- signs are to the shorthand writer. They make up the larger part of all writing. If the fingering of these is thoroughly mas- tered and the words can be written without conscious attention, the speed of the writer will be greatly increased. Facility in executing these words will also influence very greatly the speed and rhythm of other words. After completing Exercises i, 2, and 3, write two lines of 144 OFFICE PRACTICE each word in the list, and repeat until the words can be written smoothly and without effort. my but try jury by buy turn truth Note: All keys are struck with the SECOND ringer. OCKDOOOOQOOO OOOOOO(DO oooooooo SPACEBAR. Write the following on the keyboard. First Exercise Write two lines of each word, starting from home "position'* on each. kick nine cite huge dice edit very mere Second Exercise Repeat the entire exercise five times: edict eject fight there judge juice chief truce tried trick right bring check erect might every being edify fruit educe cured brute their three thick thing brief civic entry fifty incur merit never under truer river there brick enemy drive entry hinge ridge fiend merry greed thyme THE TYPEWRITER Third Exercise Write each line five times; repeat if time permits: very much in need very much in need very much in need very much in need return by freight return by freight return by freight return by freight receive the check receive the check receive the check receive the check Words of High Frequency Repeat each word until smoothness in operation and even touch are acquired. Start from "home position" each time you write the word. in the ever given it did here buyer me end even regret if him much three be her time thing he big they think Note: All keys are struck with the THIRD finger QOOOOOO$OO D(DOOOOOO(0C ooooooooo SPACE BAR. First Exercise Follow instruction of preceding lesson. lost wild oils slow sold wise list wish 146 OFFICE PRACTICE Second Exercise Follow instructions given in second lesson on keyboard exercises. bundle sundry excuse yellow swerve revive little holder exhort summer fellow wisdom vessel motion sister wonder sought window system between extreme thought without sincere refund involve leisure exists shift exercise wrought north resumed grown excited numerous recommend Third Exercise Follow instructions given in second lesson on keyboard exercises. we were told they were to be there we were told they were to be there we do not believe the business will justify the extension you suggest the solicitor for the executor resisted the orders without conscience Words of High Frequency Write two lines of each word. as all also quite at are that equal am ask many small an has take usual of pay what after up was dear shall Note: All keys are struck with the FOURTH finger. ooooooooo DOOOOOOOOO (DOOOOOOOOO SPACEBAR. THE TYPEWRITER 147 First Exercise Follow instructions given in lesson 2. power point apply place azure quick equal asked Second Exercise Repeat each line until rhythm, accuracy, and speed are acquired. practice acquire property above policy zone quality presented realized purpose reply inquire prompt question public apply about prove private acquaint package open queer request zero telephone message quarter way prepare about promise zinc perfect await profit zealous problem please quit piece prefer quick person aspire quote appear after appoint which portion expiration applause acquisition equal acquit apology anxiously aqueduct approach pleasure assets price average pay argue associate at poor assumes plain attention query squirm pounds squares allow squeeze Third Exercise Write each sentence five to ten times, nothing is useless to the man of sense; he turns everything to account men discriminate in the affairs of others much better than in their own whenever the big black fox jumped the squirrel gazed very suspiciously . Words of High Frequency Write two lines of each word, starting each time from "home position." go any far not say no and one how sir on ago men she due so big use get got of can yet ton old or day its six nor 148 OFFICE PRACTICE Capital Letters To make capital letters, depress the shift-key firmly with the fourth finger and, while holding it down, strike the letter desired. Do not strike the letter until the shift-key is depressed to the fullest extent, and do not release the shift-key until after the letter has been struck. If the capital letter desired is on the right-hand side of the keyboard, use the left-hand shift, and vice versa. Practice making a few of the following combinations until you understand the shift-key thoroughly: PI, As, Hu, Qo, La, James, William, New York, Chicago, Philadelphia, P. I., N. H. Write the following sentence ten times, or until the shifting for capitals is mastered. Raphael paints wisdom, Handel sings it, Phidias carves it, Shakespeare writes it, Wren builds it, Columbus sails it, Washington arms it, Watt merchandises it. Emerson. First Exercise Fill one line with each word; repeat whole exercise until smoothness in operation is assured. appear appear arouse arouse appall appall policy policy allege allege escape escape Second Exercise Write each two-line group five times, starting from "home position" on each line. bazaar people fall amazing zest utilize puzzle opaque departs citizen can quiet pattern unique act pretty quinine day pictures supper calls equip pressure cash reveal paid typify fame opera animals zenith came conqueror east dozen harm zeal receipt patient glade evade fair elapse quart year quit saw zephyr proper quickly adds inquiry poised quartet ability prudent shall piquant said esteem prizes yards had rear happy razor qualify potato afterward balance frozen extra air prelude amaze pack arm piano equator ordinary rapidly make copies necessary shipped i 4 9 THE TYPEWRITER Third Exercise Write first three sentences five times each; last, ten times. The last sentence contains all the letters of the alphabet and is useful as a review for each key position. The path of success in business is invariably the path of common sense. Write it on your heart that every day is the very best day in the year. Luck counts once in a while but trained efficiency counts all the time. Paul asserted that the quick brown fox slyly jumped over the lazy dog. NUMERALS OOOOOOOO(DO Strike small 1 for the figure one. Use capital O for the cipher on machines not provided with a cipher. Use capitals for Roman numerals. First Exercise Write the entire exercise as shown; repeat. y6uyi8o9po W2e3r4t5 y6u7i8o9po W2e3r4t5 6yyu8i9oop 6yyu8i9oop y6yu i89o pO2w e34r w23e r45t y6yu i89o po2w e34r 23456789 2638 3947 5876 9102 3524 4739 2638 3947 5876 9102 3524 4739 23456789 1234567890 1234567890 1234567890 1234567890 1234567890 123456789 0987654321 0987654321 0987654321 0987654321 0987654321 098765432 OFFICE PRACTICE Second Exercise One copy: Alabama 5406 Alaska 4609 Arizona 2273 Arkansas 5335 California 8368 Colorado 5409 Connecticut 9998 California 7823 Delaware 3345 Florida 5119 Georgia 77439 5748 36490 Idaho 2039 Kansas 8745 Loui- siana 6758 Maine 2039487 Nebraska 6758 New York 3948 Ohio 3920 Pennsylvania Rhode Island 2050 South Carolina 3686 Tennessee 487 Utah 2093 Vermont 1073 Washington 5248 Wisconsin 89 world 3084 manhood 3084 quince 3084 similar 3084380 serious 9152 upward 9152 machines QIC2 business qit;2 One copy: This may be written in the form of an invoice, or copied as written above as a salesman's order. On March 9, 1921, you bought the following bill of merchandise from Ward & Duff, manufacturers of men's shirts, 1062 Tenth Street, Troy, N. Y. terms 3/10, 2/15, n/3o; 10 doz. no. 631 madras shirts at $12.50 per dozen; $125; 5 doz. no. 269 silk shirts at $30 per dozen, $158; total $275. Shipped f.o.b. New York. Third Exercise Never trouble another to do for you what you can do for yourself. Labor to keep alive in your breast that little spark of celestial fire called conscience. We dislike to exchange job lots of sizes varying from a quarter up. ooooooooooo gidOOOOOQQCX&Q THE TYPEWRITER 151 First Exercise One copy: W2 63 r4 t5 y6 07 i8 09 po w2 63 r4 t$ y6 uy 18 09 po w2 63 r4 15 y6 117 S2 d3 4 g5 h6 jy k8 19 ;o s2 d3 4 g5 h6 j/ k8 19 ;o s2 de 4 g5 h6 jy "2 #3 #4 %S -6 &7 '8 (9 )o "2 #3 4 % S -6 & 7 '8 (9 ) o "2 #3 #4 %S -6 &7 "w # & %e -y &u 'i (o )p "w #e $r %t -y &u 'i (o )p "w #e r %t -y &u O'Hare & Co., 1684 (95$) bags pure "Star" salt, 2.37, 15% off, 10 days. O'Hare & Co., 1684 (95$) bags pure "Star" salt, $2.37, 15% off, 10 days. Words of High Frequency Write two lines of each word. send true reply state assure seem them shall these amount said term start those almost soon than still their appear says this study there attend time talk stock truly afraid then with today appear arrive tell week since access astray upon were spent adjust answer work what under across become went want usual advise bottom wire wish value affect beyond Third Exercise Few of the things that come to the man who waits are the things he has been looking for. (19-4.1) The more business a man has to do, the more he is able to accom- plish; for he learns to economize his time. (22-4.8) A man should never be ashamed to own that he has been in the wrong, which is but saying in other words that he is wiser to-day than he was yesterday. (31-4.7) 1 52 OFFICE PRACTICE The public was amazed to view the quickness and dexterity of the juggler. (I3-5-6) Few of the things that come to the man who waits are the things he has been looking for. (19-4.1) The more business a man has to do, the more he is able to accom- plish; for he learns to economize his time. (22-4.8) A man should never be ashamed to own that he has been in the wrong, which is but saying in other words that he is wiser to-day than he was yesterday. (31-4.7) The public was amazed to view the quickness and dexterity of the juggler. (I3-S-6) oooooooooo g)(A)OOOOOQOO(j> First Exercise Repeat first and second lines five times; write last three lines once, as shown. 234X 6789^" 234X 6789^ 23406789^ 234^ 6789^ 234^ 6789^ 234K 789K 234^ 1-384756^ 2-384756^ 3-384756^ 4-384756 5-384756^ 6-384756^ 7-384756^ $5.25 $5.25 5.25 5.25 $5.25 $5.25 $5.25 $5.25 5.25 $5.25 $5.25 $5.25 #400, #589, #872, #641, #753, #495, #654, #861, #679, #251, #759, #357- Second Exercise Our grand business is not to see what lies dimly in the distance, but to do what lies closely to hand. (21-5.05) THE TYPEWRITER 153 A word that has been said may sometimes be unsaid it is but air but when a deed is done, it cannot be undone, nor can our thoughts reach out to all the mischiefs that may follow. (37-4.84) When we have parctices good actions awhile, they become easy; when they are easy, we take pleasure in them; when they please us, we do them frequently; and then, by frequency of act, they grow into a habit. (38-5.3?) My help squeezed in and joined the weavers again before six o'clock. Words of High Frequency Write two lines of each word. word year firm four full form half hand hold hope help here feel ' five give gave gone high home into just know live knew world which would young wrote where kind late last life list look belong before better charge credit course amiss claim debit favor found first change clause cannot cancel custom desire hurry issue light local might money INTRODUCTION TO SPEED STUDIES Copy the following: The student should let speed alone until he has acquired habits of accuracy in typing. Accuracy is of the first consid- eration. Speed, of course, is necessary, but it is something that must be built on the solid foundation of accuracy. When the habit of accuracy has been formed some work must be done to accelerate movement but this should never be attempted at the expense of accuracy. When he can operate the keyboard with certainty, when he knows the exact location of every key and can strike it unhesi- i 5 4 OFFICE PRACTICE tatingly, he can begin some work in accelerating movement on continuous matter. Speed is the result of five things: First, efficient fingering ability; second, accuracy; third, continuity of operation; fourth, steady nerves; and, fifth, concentration. The impor- tance of the latter feature can hardly be overemphasized. Acquire the habit of concentration early in your work. Perform all of your work with the utmost concentration that you can command. The habit will grow, and as it does, your typing efficiency will increase. It is thought that continuous, concentrated effort toward the object of gaining speed will yield quicker and more lasting results. The following plan is suggested for the student to follow in the absence of more definite instructions: Each exercise should be written and rewritten until the re- quired speed is obtained. The first time the exercise is written the time should be noted, if the required speed is not attained on the first copy, continue the practice until it is reached. The oblique character / in the exercises indicates the end of the test, but the sentences in all cases have been completed. The importance of accuracy must always be kept in mind. But it is to be expected that errors will be made when the forcing of acceleration is begun. Therefore in correcting the practice work in the Speed Studies, the rules used in the International Contests may be applied. International Rules for Correcting Copy General Rules I. The writing should be double space on legal size paper x 13 inches). 2. But one error shall be counted in any one word. 3. The first writing only is to be considered in all matter which is rewritten. The rewritten matter should be penalized as one error only. THE TYPEWRITER 155 4. The marginal stops should be set so as to make the writing line seventy spaces long. 5. Paragraphs may be indented five or ten spaces, but must be uniform throughout. How Errors are Counted Five words from the total number written are deducted for each of the following errors: 1. Improper spacing. 2. Omission of a word. 3. Striking a wrong letter. 4. Faulty use of shift key. 5. Transposition of .letters or words. 6. Undue margin at bottom of sheet. 7. Piling letters at end of line or elsewhere. 8. Failure to commence line at starting point. 9. Inclined margin caused by not starting paper straight in machine. 10. Deviation from copy in punctuation, capitalization, paragraphing, etc. 11. Unevenness in the right-hand margin. Speed Tests Two-minute Tests First Exercise Speed, 40; Time, 2:16 The first rule for a good style is that the author should have something to say; nay, that is in itself all that is necessary. Clear thought easily finds words to fit it. Words, it is true, serve to make thought intelligible but only up to a certain point. If words are heaped up beyond it, the thought becomes more and more obscure again. To find where the point lies is 156 OFFICE PRACTICE the problem of style, and the business of the / critical faculty; for a word too much always defeats its purpose. Schopenhauer. (9I-5-3) Second Exercise Speed, 40; Time, 2:18 As I was rambling one day about the Moorish halls, my atten- tion was, for the first time, attracted to a door in a remote gallery, communicating apparently with some part of the Alham- bra which I had not yet explored. I attempted to open it, but it was locked. I knocked, but no one answered, and the sound seemed to reverberate through empty chambers. Here then was a mystery. Here was the haunted wing of the castle. How was I to / get at the dark secrets here shut up from the public eye? -The Alhambra. (9 2 ~5-3) Third Exercise Speed, 40; Time, 2:25 If you would be loved as a companion, avoid unnecessary criticism upon those with whom you live. The number of peo- ple who have taken out judges' patents for themselves is very large in any society. Now it would be hard for a man to live with another who was always criticizing his actions, even if it were kindly and just criticism. It would be like living between the glasses of a microscope. But these self-elected 'judges, like their prototypes / are very apt to have the persons they judge brought before them in the guise of culprits. Arthur Helps. (97-5-5) Fourth Exercise Speed, 40; Time, 2:04 These are the times that try men's souls. The summer soldier and the sunshine patriot will, in this crisis, shrink from the service of their countrv; but he that stands it now, deserves THE TYPEWRITER 157 the love and thanks of man and woman. Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict, the more glorious the triumph. What we obtain too cheap, we esteem too lightly; it is dearness only that gives / everything its value. Paine. (83-5.6) Fifth Exercise Speed, 40; Time, 2:43 The ability to write a good business letter is a valuable asset. Since almost every large transaction turns on the pivot of a letter, the man who writes the letter wields a power which is worth cultivating. To place a proper estimate on the power of letter-writing is a big step towards business success. Everyone has heard of instances where a single letter has turned the favors of fortune. The chief ways of developing ability in this field are / as follows: write important letters by hand before dictating, consider the relative merits of incoming correspond- ence, study the art of rhetoric, and take pains with every letter you write. Thoughts on Business. (109-5.8) Sixth Exercise Speed, 40; Time, 2:15 As every business man has something to sell merchandise or services it is important to acquire those qualities which go to make up salesmanship: courtesy, tact, knowledge of goods, judgment, accuracy, energy, appearance, and dignity. It avails nothing to say that these qualities are inborn. Whoever lacks them can measurably acquire them. The way to do so is open; observe those who possess them, adapt but do not imi- tate their best traits, analyze the subject and master it in sec- tions, / love your work, and be in earnest all the time. Thoughts on Business. (9~5-9) 1 5 8 OFFICE PRACTICE The Mechanical Arrangement of a Business Letter To the business man, the mechanical work on a letter its form, arrangement, and appearance is a mere detail, and is the last thing considered, if it is done right. But it looms big if it is not. The stenographer's work is always judged by the quality of the transcript. His shorthand may be abominable, but if he is able to read it (he generally cannot do so unless the shorthand is good) and can turn out a neatly arranged, accu- rately typed letter, his work will meet the requirements. Thus the mechanical features of a letter become of the utmost impor- tance to the typist. The Parts of a Business Letter Theoretically, the business letter consists of the following parts: 1. The Heading. This embraces the printed or engraved name and address of the individual, firm, or corporation sending the letter. This information usually contains, in addition to the name and address, the telephone number and other facts for the convenience of the concern's correspondents. 2. Date Line. The date line gives the month, day of the month, and the year. This, as will be seen from the illustrations, begins usually about one double space below the printed mat- ter. The year need not be followed by a period as it is obvi- ously the end of a line. The date line usually begins about the middle of the page, or a little to the left of the middle, so that the line will finish flush with the body of the letter. 3. The Inside Address. This contains the name of the per- son addressed, the number of his house or place of business, the street, city and state. 4. The Salutation. The salutation consists of such words as ''Gentlemen," "Dear Sir," "Dear Madam," "Dear Mr. Williams," "My dear Mr. Williams," etc. The salutation be- gins flush with the beginning lines of the body of the letter. THE TYPEWRITER 159 5. The Body of the Letter. This contains the message to be conveyed. The paragraphs of the body are indented five spaces from the beginning of the line. 6. The Complimentary Close. This consists of the closing words of a communication, as, for example, "Yours truly," "Very truly yours," "Yours sincerely," "Respectfully yours," etc. The complimentary closing usually starts about the middle of the line. In many offices it is the practice to begin the date line and the complimentary closing at the same point, as near the middle of the line as possible. 7. The Signature. This is usually pen written by the dictator. 8. The Dictator's Initials. These, together with the stenog- rapher's initials, usually are placed a double space below the signature, flush with the lines of the body of the letter. The initials are necessary to identify a letter in concerns where the correspondence emanates from many heads. . Proper Margins Important The first thing to be considered in proper disposition of the matter on the page is margin, and it is in the arrangement of the margin that the average stenographer discloses his possession of the artistic sense or the lack of it. A simple illustration will make clear the correct view of the margin: The effect of a picture is much enhanced by its frame, or by a wide mat around it. In typing a letter, just consider the letter itself as the picture, and the margin, or wide space around it, as the frame, and you will get the right idea. As the present practice is to use letterheads of the same size for all letters, it is obvious that the shorter the letter the wider the margin necessarily will be and this applies to the top, the bottom and the sides. On the short and medium length letters the margin at the bottom may be left a little wider than the others, just as it is in first-class books. By the use of wide or 160 OFFICE PRACTICE single space, as the case may demand, a good margin can always be obtained. Paragraphs Relieve Monotony Another point to be taken into consideration is paragraphing. Breaking the matter up into frequent paragraphs prevents a monotonous appearance. Paragraphs are usually indented uni- formly five spaces. The following quotation from Applied Business English and Correspondence will serve to guide the typist in a general way. "If we have several topics to be discussed in a letter, each should be treated in one paragraph usually introduced by a topic sentence which prepares us for what follows. If the topic is such that an extended treatment of it is necessary, it will, naturally, be divided into paragraphs. A paragraph should be a collection of sentences treating on one subject or on one view of a subject. . . . Paragraphing at best is a question of taste. A business letter may consist of one or more paragraphs, accord- ing to the number of subjects or the number of phases of one subject." As most short business letters treat of one subject, the general rule of paragraphing always cannot be followed. In short letters, the introduction usually is placed in one para- graph, the subject treated in the second, and the closing sentences in the third. THE TYPEWRITER 161 Illustration of a double space indent letter: ROGERS PEET COMPANY NEW YORK, N. Y. August 15, 1921 Mr. Rupert P. SoRelle 7 Kensington Terrace Bronxville, New York Dear Sir: As Mr. Omer said to David Copperf ield-- "Fashions are like human beings. They come in nobody knows when, why or how; and they go out nobody knows when, why or how." But that was "before our time. Of course nowadays the "why or how," as. in Dickens' time, makes little practical dif- ference, "but most certainly our friends and customers, like your good self, expect us to fenow when. Right now, for instance, fall styles and the new "Forefather" fabrics are just in. May we have the pleasure of showing them to you? Respectfully, ROGERS PEET COMPANY FEM/GHS 162 OFFICE PRACTICE Note: The firm name in this letter is Rogers Peet Company. The date of the letter, August 15, 1921, is begun at 45 on the white scale on the typewriter. Mr. Rupert P. SoRelle 7 Kensington Terrace Bronx ville, New York is the inside address. In this particular letter the lefthand marginal stop is set at 10. The name is written flush to the marginal stop, the street address at 15, and the city and state at 20. "Dear Sir:" the salutation begins at the left marginal stop. Each paragraph is indented 5 spaces. The complimentary close Respectfully is usually begun at 35 on the scale. The signature consists of the name of the company in capitals upon whose letter-head the letter is written, and the line upon which the signature of the person who signs the letter is written. This section of the letter is begun at 40 and at 45 if the indent style is used. If the block style is used both begin on 40. The initials of the dictator of the letter and of the stenographer are written flush with the marginal stop FEM/GHS. In a single space letter two single spaces are allowed between each para- graph and two single spaces precede and follow the body of the letter. Note: The envelope must be addressed in the same style as the inside address of the letter enclosed in that envelope. BRYANT & STRATTON-RHODE ISLAND COMMERCIAL SCHOOL Incorporated IHTI.F.n EXCHANGE PROVIDENCE The Gregg Publishing Company 285 Fifth Avenue New York City i. ILLUSTRATION OF DOUBLE SPACE, INDENT ADDRESS ON LARGE ENVELOPE THE TYPEWRITER 163 DONOVAN & ARMSTRONG Advertising COMMONWEALTH BUILDING PHILADELPHIA Mr. Ayrton A. Howard 600 Fulton Street Rochester, Indiana 2. ILLUSTRATION OF BLOCK FORM OF ADDRESS, DOUBLE SPACE. THE PLIMPTON PRESS NORWOOD, MASS., U. S. A. Perfect Bookmaking in its Entirety Benziger Bros . , Publishers 36 Barclay Street New York City 3. ILLUSTRATION OF DOUBLE SPACE, INDENT ADDRESS. 164 OFFICE PRACTICE J. E. LINDE PAPER Co. BEEKMAN & CLIFF STS. NEW YORK Mr. E. L. Morgenstern Mississippi River Commission 12th Floor, Queen & Crescent Bldg. New Orleans, Louisiana 4. ILLUSTRATION OF FOUR-LINE ADDRESS, SINGLE SPACE, BLOCK. The following letters are taken from Shorthand Dictation Drills, by John Robert Gregg. Make a correct copy of each exercise, using the model as a guide for arrangement. Note: Use your city and state and the current date. Use the names of the customers and creditors of the McGill Company (see Chapter Ten) for the name of the firm on the letterhead for the Incoming Mail. Use the McGill Company for Outgoing Mail. Center the name of the firm and allow a space of about two inches from the top of the paper. Send these letters to the Filing and Outgoing * Mail Departments. Mr. Edward Wallace, Savannah, Georgia. Dear Sir: We have your bill for thirty dozen combs. Our order was for a duplicate of your invoice 913, and these combs are not what we wish. The comb we carry is like the cut which we inclose. If you can duplicate it, send the thirty dozen combs imme- diately. How shall we return the combs on hand? Yours truly, THE TYPEWRITER 165 The McGill Company, 210 Bedford Street, Stamford, Conn. Gentlemen: We are using a new kind of ink on your job, and we know that you will like it. The paper and type are fine, and the whole will look well. The books will be ready early in the week and will be sent to you at that time. If you wish to call at our shop to-morrow, we can show you a few pages. The prices on both ink and paper are increasing every day and you are saving money by having your fall lot of books printed now. Yours very truly, Mr. George D. Maguire, Buffalo, New York. Dear Sir: The mortgage we have on your house and lot will be due on the 25th of this month. The house needs painting and the tenants say the roof leaks every time it rains. If you wish us to renew the mortgage for three years, we will do so if you will paint the house and put on a new roof. This will insure its being leased for the term of the mortgage. If you are not willing to do this, we shall have to ask you to arrange to take care of the mortgage when it becomes due. Yours respectfully, Mr. Jerome Thompson, Nashua, N. H. Dear Sir: Kindly inform us what has occurred in connection with the Rogers matter. The interest on this loan is due March 19 and we have been hoping that the principal and interest would be settled at that time. Your clients should really pay ^/ 2 per cent on the interest if it is not paid when due. Also kindly give me the name and address of the proper person to communicate with in regard to the interest due on March 19. We shall appreciate it if you will write him in regard to this interest so that there will be no question about its being paid promptly. Yours truly, McDonald & Rich, Providence, R. I. Gentlemen: We regret that we shall not be able to give you any business for the reason that your shipping points are so far from us that it makes our freight rates excessive. Besides prices on our products have not advanced sufficiently to warrant our paying the prices you are now asking for mattress stock. We have a fair supply on hand, 1 66 OFFICE PRACTICE but we shall undoubtedly have to purchase an additional stock within the next two or three months. It is possible that we shall take the matter up with you later, and if so, some business may come your way. We thank you very much for the quota- tions and information which you have furnished us. The booklet will be kept in our files. Yours truly, Illustration of single space letter with block inside address and block signature. MARSHALL FIELD & CO. CHICAGO, U. S. A. July 20, 1916 Miss Pauline M. Caldwell, Hotel Blackstone, Chicago, Illinois. Dear Madam: We regret our inability to adjust the transaction pertaining to the curtains accord- ing to your wishes, owing to the fact that our stock is exhausted. If you intend to "be in the store in the near future, we recommend that you stop at our Adjusting Bureau, as we "believe a personal in- terview will assist in disposing of this mat- ter to your satisfaction. In the event of your calling, please present this letter for reference, so that there will be no delay in connecting the previous papers. Yours very truly, MARSHALL FIELD & COMPANY MP/VJ By THE TYPEWRITER 167 Make a correct copy of each exercise, using the model as a guide for arrangement. Brown & Sharp Mfg. Co., Providence, R. I. Gentlemen: This is a reply to your letter of March 27 relative to your order for blocks. We will complete loading one car today and will ship you the second car on your uncompleted order at as early a date as possible. We have had considerable trouble with our press during the past week and that has put us behind with all our shipments. We have not intentionally held your order to give other business the preference, but the delay has been occa- sioned by our inability to make the blocks fast enough for our orders. You are aware of the fact that this is a very busy season with us. Yours very truly, Mr. Wm. S. O'Gorman, Los Angeles, California. Dear Sir: Immediately after receiving your letter of the 5th, we looked up the order which you placed with our agent, Mr. Albert Lynch, on June 18. We find that the keg of nails and the ham- mers called for were shipped from our mill on July 28. They should have reached you long before this time. We are having them traced from this end, and suggest that you keep after the freight office at Dallas. They should have some record of this. If you wish the order duplicated, write us immediately. Yours very truly, Mr. Wm. H. Upton & Bro., Richfield, Utah. Gentlemen : We regret to inform you that your claim for ^12.17 for damage on goods delivered October 8 has not been allowed. Our records clearly indicate that the shipment left our shipping room in good condition and was delivered to your shipping clerk in good condition. If the shipment is damaged, the responsibility does not lie with us. We trust that you will be able to place the responsibility and that the matter will be adjusted without loss to you. If copies of our records on the shipment will help you, 1 68 OFFICE PRACTICE kindly notify us and they will be promptly forwarded. Very respectfully, Mr. Frank J. Arnold, Pittsburgh, Pa. Dear Sir. Several days ago I had an opportunity of showing you our office furniture. If you have not completed the purchases for your new office, can't you come in again some day soon? We received a few of the new desks and chairs yesterday and the others will arrive in a day or two. I believe that these new styles will appeal to you. At any rate, I should like to have you see them before making your final decision. We can furnish these styles in any standard finish or can make them up to match the furniture you now have. If you decide to get all new furniture, we will make you a liberal allowance on any pieces you want to turn in. Our guarantee covers both service and quality. Yours very truly, The McGill Company, 210 Bedford Street, Stamford, Conn. Gentlemen: About three years ago I visited your plant and saw there what I took to be the machinery of an old Model A Wright biplane. As I have one of these machines that I am rebuilding for exhibition purposes, I should like to know if you would be willing to sell me this old machinery. I should want the two propeller shaft brackets with shafts and pro- pellers, also chains and chain guide. I should also like an old-style, 4-cylinder, 25 H. P. Wright engine. This outfit would not have to be in running condition as it is intended for exhibition purposes in a museum. If you cannot furnish me with these parts, perhaps you can inform me where I can procure them. I am inclosing a small photograph which I took of your hydroplane when I was at your plant. You may be able to use it for advertising purposes. Very truly yours, THE TYPEWRITER 169 Illustration of single space indent letter: THE NATIONAL CITY BANK NEW YORK, N. Y. October 15, 1921 Mr. Guy S. Fry 77 Madison Avenue New York City, New York Dear Si We are pleased to offer for your invest- ment, subject" to prior sale and advance in price, the new issue of Anglo -French 5$ Five- Year Gold Bonds at 98 and interest, netting close to The loan is definitely due and payable in five years. At your option, however, these bonds may be converted into a 4^$ obligation matur- ing in from fifteen to twenty-five years. If we may draw any conclusion from the past, it would seem that this may become a valuable in- vestment privilege. The bond is unusual in that the United Kingdom of Great Britain and the Republic of France are not only jointly liable but each of the two nations is severally liable for the punctual payment of the entire loan, principal and interest. We recommend these bonds for investment and shall be very glad to be advised of your wishes . Yours very truly, THE NATIONAL CITY BANK AM/FLJ Bond Department i;o OFFICE PRACTICE Make a correct copy of each exercise, using the model as a guide for arrangement. Mr. Louis E. Lawrence, Annapolis, Md. Dear Sir: We are sending you a copy of our invoice of March 12 for 93.64 in order that you may have the opportunity to check it up with your records. Our books indicate that this bill is still unpaid. If there is any error on the invoice, please write us about it at once and we will gladly make the necessary correction. Yours very truly, Mr. James MacDowell, Detroit, Mich. Dear Sir: We sent you today from our Cincinnati factory the merchandise ordered in your letter of May 10. We are obliged to ship with a bill of lading attached, inasmuch as you are not personally known to us or to the trade in Cincinnati or in Toledo. We shall be pleased to receive references from you and to investigate them. If these references are satisfactory, we will willingly open an account with you. We thank you for the liberal order and trust that this will be the beginning of long and prosperous business relations between us. Very truly yours, The McGill Company, 210 Bedford Street, Stamford, Conn. Gentlemen: As suggested in your letter of April 21, we are writing your customer, the Automatic Furniture Company, asking that they furnish us with the necessary information for riling this claim. On receipt of their letter, you will hear from us. We have also a voucher covering the over- charge on the shipment made to the Atlantic Coffee Com- pany, for which we thank you. Signed receipts are inclosed. We appreciate the energetic manner in which you are look- ing after our interests in your part of the country. Very truly yours, Mr. Frank R. Quinlan, Bangor, Maine. Dear Sir: Some time ago we placed in the hands of the Second National Bank THE TYPEWRITER 171 of Denver for collection your note due May 5. So far as we know, this note has never been paid. Several days ago we asked the bank to give us a report and they informed us that they had never received the proceeds. So long a time has now elapsed that you should see the urgency of immediate payment. We do not mind telling you that we need the money badly to meet an emergency call. We shall certainly appreciate it if you will give this matter your special attention. Very respectfully, The Wilson Sargent Co., Louisville, Ky. Gentlemen: At the suggestion of our agent, Mr. James Grant, we are mailing to you today, without charge, one dozen pairs of the 5o-cent size cushion heels. You may put these in stock with what you have and clean out the whole lot at 25 cents each. You will then be ready to put in our new 25-cent heel. The price and quality of this new heel will certainly please your customers. We sent a trial lot of five dozen pairs to a large firm in Clinton on Monday, and yesterday afternoon they wired us for three cases. Yours very truly, Mr. M. J. Slater, El Paso, Texas. Dear Sir: The confidence that you have expressed in consulting us about your investments is, we assure you, much appreciated. The Standard Gas and Electric Company six per cent gold notes in denominations of $50 and $100 furnish a satisfactory investment for the savings of people of small means, and we recommend them for the 'earnings of your two children. We have a large number of accounts of this nature on our books and we consider it desir- able business, as it often grows into a good-sized investment in the course of a few years. We shall be glad to receive your order for these notes, or to reserve them for you if you are not prepared to purchase now. Very respectfully, i?2 OFFICE PRACTICE Illustration of single space, block inside address, block signature, and block paragraphs letter form. This represents the first page of the letter it is not complete: THE CURTIS PUBLISHING COMPANY PHILADELPHIA, PENN. July 20 1916 Mark Cross, Ltd. 89 Regent Street London, W. , England Dear Sirs: Every day in the. year the American people con- sume more than $1,400,000 worth of merchandise purchased from the United Kingdom, Germany, France, Austria, Hungary, Belgium, Sweden, Netherlands, Switzerland and Italy. The total annual exports from these countries to the United States are valued at more than $500,000, "but no country in the world has re- cently shown such great changes in foreign trade as has the United States. Within ten years international relations have so shifted that, instead of "being primarily an exporter of food, and an importer of manufac- tures, the United States is exactly reversing its position. Our importations of one classification alone, iron and steel manufactured commodities, which in 1903 were of the money value of $41,000,- 000, decreased in 1913 to $34,000,000. Mean- while, our exports of manufactured products have been, in their increase, one of the most striking of international trade phenomena. THE TYPEWRITER 173 Make a correct copy of each exercise, using the model as a guide for arrangement. R. H. Macy & Co., New York, N. Y. Gentlemen: In making up your order we find it impossible to supply you with the exact quality of serge that you desire. Rather than delay your ship- ment until a fresh supply is received, we have selected from our stock another piece of a little better quality than the one you ordered. This material costs us more and regularly sells for more, but, since the fault in this case is ours and not yours, we are not going to charge you anything extra. If you find on examination that for any reason you cannot use this material, we shall be glad to have you return it to us at our expense. We thank you for the order and we hope to have the pleasure of hearing from you again in the near future. Very truly yours, Baldwin, Serchson & Co., Columbus, Ohio. Gentlemen: Inclosed you will find a letter that we received from Edwin McKenzie in regard to the car of white corn that he shipped through me on which he got 12 per cent discount. He shipped several cars out of the lot that graded No. 5. As you will note from his letter, which we inclose, he cannot understand why this car did not grade No. 5, and he also thinks the discount is excessive. Will you kindly write us again in regard to this car so that we can show him the letter. If you can do anything in this matter, please act promptly. Mr. McKenzie has been a good customer of ours for many years and it is important that we keep him satisfied. Yours truly, Mr. Joseph Ziegler, Akron, Ohio. Dear Sir: We acknowledge with pleasure the receipt of your request for a copy of our com- plete catalog. We do not issue a general catalog, for the reason that we are constantly bringing out improvements; and we feel that our customers are always entitled to the newest features at the time of purchase. Accordingly, we are today instructing our agent, Mr. J. A. Stewart, 23 South Avenue, Topeka, 174 OFFICE PRACTICE Kansas, to call on you at his earliest convenience. Mr. Stewart will be in a position to offer you some very interesting sug- gestions, and we are sure that his visit with you will be both pleasant and profitable. In the meantime, perhaps we can lend assistance on some of the general problems of your business. Our Merchants' Service Bureau is maintained for this special purpose and we invite you most cordially to avail yourself of the privilege. We are awaiting with interest the receipt of further word from you either direct or through Mr. Stewart. Yours very truly, American Printing Company, Fall River, Mass. Gentlemen: Please send to our New Haven publishing office the following: 50 Ibs. 28x34, 60 pounds, white bond; 500 sheets Irish Linen; 10 reams, 9x14, Mimeograph, 1000 sheets in pkg.. Kindly ship by N. Y., N. H. & H., Adams Express. The above order is to be invoiced, net f.o.b. your mill, or c.i.f. . terms 3/5, 2/10, n/3O as per your quotation No. 7894 of the 9th. We note ship- ment will be made in three days from receipt of the order, therefore we are counting on you to ship the above order not later than Wednesday of this week. Yours very truly, The McGill Company, 210 Bedford Street, Stamford, Conn. Gentlemen: We are writing to call your attention to the fact that your account covering the invoice of February 20 amount- ing to $235 rs now due. The terms on this invoice were 4/5, 2/10, n/3 ~ " State __ Sentby (Name of Sender) Address! sender J No Street PURCHASES MUST SEND ORDER AND COUPON TO PAYEE C5 7155 SAMPLE OF DOMESTIC MONEY ORDER 234 POST OFFICE AND TELEGRAPH 235 Assignment: Make out applications for domestic money orders in favor of the following creditors for the amount due them by The McGill Company, 210 Bedford Street, Stamford, Conn. Make and file a carbon copy. List of Creditors Amount Due 1. Leonard, Walter Bangor, Maine $150.00 2. Thompson, Jerome Nashua, New Hampshire 75-OO 3. Ober, Theodore Cheyenne, Wyoming no.oo 4. Quinlan, Frank R. Bangor, Maine 50.75 5. Murphy & Henderson Niagara, New Ycrk 25.80 6. McNulity & Bros. Frankfort, Kentucky 7.75 7. Evans, Samuel Ogden, Utah 13 .50 8. MacNeil, Thomas G. Salem, Oregon .79 9. Maguire, George D. Buffalo, New York 6.80 10. Wilson, Sargent Co. (The) Louisville, Kentucky .98 11. MacDonald & Rich (Inc.) Providence, Rhode Island 1.25 12. Peterson & Jamesson Tampa, Florida 7.63 13. Upton, William H. & Bros. Richfield, Utah 1.35 14. Vincent, Charles & Co. Baltimore, Maryland .50 15. Silverman, George H. Boise, Idaho 3.68 Telegrams Telegrams are messages sent by telegraph within the borders of a country or to adjacent countries not totally separated by large bodies of water as, the United States, Canada, and Mexico. All messages written must be in clear, concise language. As charges are by the word, messages should be sent in as few words as possible, but must clearly state the desired meaning. To guard against mistakes or delays, the sender of a message should order the message repeated, that is, telegraphed back to the originating office for comparison. The charge for this is one-half the unrepeated message rate in addition. Messages will be delivered free within one-half mile of the company's office in towns of 5000 population or less, and within one mile cf such office in other cities or towns. 236 OFFICE PRACTICE There are four different classes of service. The full-rate messages are paid for on the basis of a charge for the first ten words and an additional charge for each additional word in excess of ten words. They are the messages which most of us send and which are transmitted immediately. Night messages are accepted up to 2.co A.M. at reduced rates, to be sent during the night and delivered not earlier than the morning of the next ensuing business day. Day Letters: A deferred day service at rates lower than the standard telegram rates as follows: One and one-half times the standard night letter rate for the transmission of 50 words or less, and one-fifth of the initial rates for each additional 10 w r ords or less. Day Letters must be written in plain English. Code lan- guage is not permissible. The day letters may be delivered by the company by telephoning the same to the addressee, and such delivery shall be a complete discharge of the obligation of the company. Night letters are accepted up to 2.00 A.M. for delivery on the morning of the ensuing business day at rates still lower than the standard night message rates. Night letters should be written in plain English. Code lan- guage is not permissible. Night letters may, at the option of the telegraph company, be mailed at destination to the addressees, and the company shall be deemed to have discharged its obligation in such cases with respect to delivery by mailing such night letters at destination, postage prepaid. In a telegram no salutation as "Gentlemen," or "Dear Sir," and no complimentary close as "Yours truly," or "Yours respectfully," are used. Telegrams must be typewritten; three copies being typed; the original is sent to the telegraph com- pany, the first carbon copy is filed, while the second carbon copy is retained by the accounting department. Transfer of money by telegraph orders, both domestic and POST OFFICE AND TELEGRAPH 237 foreign, are accepted by telegraph companies for the immediate transfer of money by telegraph. Charge to the account cf Send the following message, subject to the term* on back hereof, which are hereby agreed to Assignment: Read the above directions and decide upon the least number of words in which you can express the necessary data for your telegraph message. When you have the message in clear and concise language, write it on an official yellow telegraph blank. This message is to be written on the typewriter, also two car- bon copies. File the copy for reference. 1. Studewell & Co., 543 Asylum Street, Hartford, Conn. We are unable to fill your order for groceries before the I5th of this month. May we substitute goods we have on hand which are similar to the ones you ordered? Wire response. 2. H. Jackson & Co., Atlantic City, New Jersey. Groceries ordered on the 5th of this month have not yet arrived from our warehouse. Shall we ship your order next week? 3. Congress Hall Hotel, Washington, D. C. Wire our salesman, Mr. Harris, to go to Boston, Mass, and call on Bowen Bros, for order of Mdse. 4. Brown & Thompson, $i2-2nd Street, Louisville, Kentucky. Will complete order to-day and will ship via Penn. R. R. to-morrow. 5. H. Wenkenbach & Sons, iO5o-5th Street, Detroit, Mich. We are wiring our factory to ship direct and make a rush order of your order of Monday. 6. H. Garrison, 2001 Tremont Street, Boston, Mass. Quote us on 40 bbls. N. S. Flour via N. Y. N. H. & H. R.R. Wire us when delivery can be made. 7. J. McNulty, 2124-ioth Street, Chicago, 111. Have not received 238 OFFICE PRACTICE the remittance promised us on the loth. We will send Sight Draft tomorrow. 8. Fessenden & Grant, 1002 Main Street, Atlanta, Georgia. Mdse ordered is being packed and you will receive same within a few days. Will send by freight. 9. Henry Walters, Hotel Starler, Buffalo, New York. One of our salesmen has just been elected {resident of the Traveling Sales- men's Association, at their Convention being held at the above address. Send him a congratulatory message. "We have just heard of your success so well deserved and so splendidly won. Your fellow salesmen have shown their appre- ciation of their confidence in your ability to make their asso- ciation even more successful than it is at present. You have our warmest congratulations and all good wishes." 10. Peterson & Bushnell, 456 Market Street, Philadelphia, Penn. Wire us when we may expect the invoice of mdse. we ordered by mail last Monday. Cancel our order if you cannot send the mdse to us by Saturday of this week at the latest. Note: Send Nos. i, 3, 4, and 7 as full-rate messages. Send Nos. 2 ; . 5, and 6 as night messages. Send Nos. 8 and 10 as day letters. Send No. 9 as a night letter. Mechanical Devices Many mechanical devices were used during the world war. In the offices in Washington, D. C., a device was used to re- place the telephone. A message was written on a pad with a pen electrically connected with the telephone wire, with a similar pen in the office to which the message was to be sent. Answers to these messages were received by this same method. In the War Risk Insurance office the clerical work was nearly all done by machinery. The amount of each check, the name of the person to whom it was to be paid, the address and the allotment number were placed on a plate of an addressing machine. The checks were then printed ten in a sheet with a different entry on each check. The checks were signed by a master pen, guided by the operator, and it controlled and directed the strokes of the POST OFFICE AND TELEGRAPH 239 other nine pens, thus signing the ten different checks with one writing of the signature. The slitting machine cut the sheets of the ten checks, the moistening machine moistened and sealed the envelopes. The bundle tier automatically tied them in bundles and then the checks were ready for mailing to the dependents of the United States soldiers and sailors. Besides those already mentioned, offices have automatic en- velope sealers which are simple in construction and operation. The envelopes are placed one after the other over a feed plate. A crank is turned and the motion of the machine automatically moistens the flaps and quickly carries the letters through the rollers in a practically unbroken stream. The moistening de- vice is a metal cone which always brings a uniform supply of water, thus every envelope is sure to be properly sealed. The stamp affixer is a handy mechanical device. It is a portable safe for the office postage stamps. By a single pressure of the plunger the device performs five different hand opera- tions: picking up, moistening, severing, attaching, and counting the stamps in less time than required for each operation when stamps are attached by hand. The register on the stamp affixer automatically counts every stamp as it is attached to the envelope or package, thus giving an absolute check upon postage expenditure and eliminating the necessity of counting each day's mail. The Automatic Electric Typewriter such as the Hooven is used for sending out form letters in large quantities. This automatic typewriter performs every operation exactly as if it were hand operated rather than electrically, but does it five or six times as rapidly as by hand. The automatic typewriter is driven by a i-io horse-power motor, and is controlled by means of a paper stencil which contains the form of the letter to be written in quantities. This stencil is similar to the stencil used on a player-piano. The paper stencil which operates the automatic typewriter 240 OFFICE PRACTICE is made by striking the keys of the perforator, which has the same keyboard as any standard typewriter. When the keys are struck, instead of printing, the perforator cuts holes for the characters desired. This stencil when completed is cemented into an endless band and placed over a drum in the rear of the automatic typewriter, and then any number of circular letters may be typewritten from the stencil. The Addressograph The best-known device for every name-writing purpose is the Addressograph. It is entirely automatic; it is not necessary to feed by hand or arrange any matter to be addressed, as the envelopes are automatically placed at the printing point and addressed at the rate of 5000 an hour, then they are automati- cally stacked in regular order in the receiver. After printing the address plates are automatically refiled in their original order in their original filing drawer beneath the machine. These metal address plates always print legibly, thus preventing costly errors and loss or delay in shipping or mailing. Magazines and newspapers are not always enclosed in wrap- pers. A lister for mailer strips, automatically feeds a narrow strip of paper from a roll, imprints the subscribers' names, ad- dresses and the expiration dates on it, at the rate of 5000 an hour, and rewinds the strip on a second roll. This addresso- graphed strip is then inserted into a mailer which rapidly cuts and pastes the individual address on publications. In the War Risk Insurance Bureau, Washington, D. C., and the mailing departments of large mail order concerns, they use an addressing machine for their mailing list. Address plates are made on stencils that are cut on the typewriter. These plates are arranged alphabetically and filed. When needed for use in mailing envelopes, wrappers of magazines or newspapers, they are fed into the machine and after addressing the envelopes are replaced in the file cabinet to be kept for future use. CHAPTER TEN THE STORY OF THE ADDING MACHINE Supplementary Exercises for Class Use THE adding machine has removed the drudgery from book- keeping and has made that vocation popular. Before trial balances or even debits and credits were thought of man sought some escape from the drudgery of casting up figures "in their heads." Century after century, through era after era of constantly shifting civilization, the search went on. At different times the problem has occupied the minds of the great scholars of every race the Egyptians, the Assyrians, the Chaldeans, the Greeks, the Romans, and the Chinese have all added to the study and investigation of the problem, and yet a solution seemed no nearer at the middle of the last century than it had been at the very beginning. These ages of striving for an idea merely indicated the tremendous need that has always existed for some device to relieve the human brain from its calculations. Before mankind knew enough to put its figures in columns, simple calculations were formed by placing shells and pebbles on the ground to represent numerals. The stone-age man used the side of a cliff for his ledger sheet and a chisel and hammer for his pen. It is not at all unlikely that when Noah built the ark he chiseled the calculations of his plans on tablets of stone. Such were a few of the problems met by man before the days of the deluge when the human brain revolved at low speed. The first adding machine used by man was "four fingers and a [ 341 1 242 OFFICE PRACTICE thumb/' one hand being used to furnish the units of calcula- tion, while the other was used as the counter. Because of this, man's sum of things was at first limited to five. There was no way to count a half-a-dozen. Present-day explorers tell us that there are certain African tribes who still know no numeral beyond five, and have no word in their language to express a higher number. The finger and thumb adding machine was constantly im- proved to meet the needs of the race. One important step in the development was the adoption of both hands for units in- stead of one. Historians have pointed out in this connection that man's possession of 10 fingers accounts for 10 being used as the basis of our numerical system, and has given to us our present decimal system. It must not be thought finger reckon- ing represented a merely crude method of counting. It was highly developed by one race of people who could carry calculation into the hundreds of thousands, using practically the same system as that which has made the modern add- ing and calculating machine possible. The Egyptians were the first to develop any really efficient system of numerals and their mathematical application. Babylon was the foremost commercial center of the ancient world, and the early Babylonian inscriptions show that they wrote numbers from left to right as we do to-day, while the Egyptian and the Chinaman still worked up and down. At about the time Abraham took his son Isaac into the mountains to offer him up as a sacrifice, the Babylonians invented a deci- mal system. The records of Babylonian business houses dated at about this time are still in existence. They were made with a sharp stylus on pieces of soft clay which were moistened to get a good writing surface and made permanent in the drying process. Babylonian business having developed more rapidly than in other parts of the world, they had difficulty in keeping their accounts. A crude form of accounting machine was made up by the use of a record board and pebbles being shifted about STORY OF THE ADDING MACHINE 243 on a rude surface. Excavations in Chaldea have brought to light the original loose leaf-ledger. It was nothing more or less than rows of shelves rilled with wide-mouthed earthen jars, each of the jars containing these baked clay tablets. An improvement in the original reckoning board was made by a Greek named Abax. Later we have the Abacus arranged by the Romans. Later on this was improved, the principle adopted being that of an open frame strung with horizontal wires placed at equal distances strung with perforated pebbles. The swan pan used by certain Oriental peoples to-day is very little different from the original Abacus. Little progress could be made in bookkeeping methods until the present system of numerals came into use and numbers were written in columns. The Italians seemed to have developed this particular art of accounting. At about the time the Mayflower sailed for America there was produced the first mechanical aid to calcu- lation in Naples. This was Napier's rod, consisting of strips of bone bearing numbers on the surface which could be brought into fixed combinations and aided in many calculations. Later developments of this invention gave us the wonderful slide rule with all its variations that is used to-day by draftsmen, engineers, surveyors, and craftsmen of many sorts. At about this time the principle of dial wheels bearing figures on their circumference was invented by a young Frenchman, Blais Pascal, giving various combinations of numbers that could be brought together. There has never been any parti- cular difficulty in accomplishing mere mechanical calculations since the days of Pascal; the cyclometer on a bicycle, the counter on a printing press, and the fare register in a street car, were all made possible by this device and are, in a small way, adding machines or calculators. The first organized attempt to produce a calculating ma- chine was made by Charles Babbage, a professor of mathe- matics of Cambridge University, early in 1800. The British government appropriated almost a hundred thousand dollars 244 OFFICE PRACTICE for his experiments, but the device never worked. Follow- ing the work of Babbage a host of experiementers sprang up all over Europe and considerable progress was made towarddevising a means of calculation for a scientific purpose. Not until late in the I9th century was the first adding 'and recording machine that became commercially possible com- pleted by an obscure New York banker named William Seward Burroughs. In the bank this young man learned that nine- tenths of the work that is done by gentlemen who toil indoors at nice clean occupations had to do with figures, and that three-fourths of the commercial side of figures is addition, and that the human brain being an imperfect tool is incapable of sustained effort without accident. Finally when he analyzed this matter he discovered that about one-half his time was occupied in guarding against errors and half of the remaining half in hunting for errors that all his precautions had not prevented. Adding machines are divided into two general classes. The first is the recording machine which records the result of the computation on a sheet or strip of paper, as well as accumu- lating the result in the dial wheels. From the recording or "listing" machine has developed the bookkeeping machine. The second classification is the key-driven or calculating ma- chine. The difference between the key-driven and recording machine is, as the name would indicate, that as soon as the key is depressed and released the calculation is completed. '1 he recording or listing machine further divides itself into two general classes or types; the standard full keyboard, consisting of keys arranged in columns with alternative sections colored black and white keys conforming to the decimal system of numbers, and the 10 key machines, such as the adding ma- cines in connection with typewriting machines, etc. 1 he key- driven or calculating machines are of two general types; the one operated by the simple depression of the keys and the other operated by a crank or lever motion. STORY OF THE ADDING MACHINE 245 There are a number of machines of each type under various names manufactured. These machines each perform practi- cally the same functions as other machines of their class. It must be remembered that while the original types of adding machines were intended to do all classes of work, experience has shown that certain types of adding or calculating machines will perform a certain character of work better than machines of a different type. For illustration, 4334 can be multiplied by 4334 on the listing or recording type of machine, but the entire calculation can be made upon the key-driven or calculating machine almost before it is set up ready for multiplication on the other type of machine. Consequently the business man analyzes carefully his figure work and applies to that work the machine which is best fitted to his needs. For instance, he does not use a listing or recording machine to do the work which can be better accomplished with the calculating, or vice versa. For certain kinds of work where checking is necessary and a record should be preserved only a recording or listing machine can be used advantageously, while on other types of adding, excepting on small numbers which is merely the checking of another addition such as sales slips, frequently the key-driven or calculating is best adapted. This also follows in checking invoices and pay-roll work where the processes of multiplication and division make the key-driven machine best suited for the work. In certain types of multiplication and division, where the result needs to be carried out beyond the fifth decimal place, it frequently happens that the crank-operated calculator is best suited for the work. Any calculation that is possible with pencil and paper can be made on the adding or calculating machine, whether it is figuring interest, calculating discount, or the extraction of roots; the process is addition, multiplication, subtraction or division. A close analysis of these four proc- esses reduced all figure work to addition. As was shown before, 10 being the basis of our numerical system, all our figure work is based upon 10. The adding or 246 OFFICE PRACTICE calculating machine offers no new principle of calculation, but follows out closely the ringer methods of the ancients, handling numbers only in batches of 10 as per illustration. 8 x 9 x 7 x 6 9 x 4 x 5 6 x 4 9 x 5 72 9 and 5 are 14, one 10 and 4 to carry; marking the 10 we have 4 and 4 are 8 and 6 are 14, one 10 and 4 to carry; marking the 10 again we have 4 and 5 are 9 and 4 are 13, one 10 and 3 to carry; marking the 10 we have 3 and 9 are 12, one 10 and 2 to carry; marking the 10 we have 2 and 6 are 8 and 7 are 15, one 10 and 5 to carry; marking the 10 we have 5 and 9 are 14, one 10 and 4 to carry; marking the 10 we have 4 and 8 are 12. Mark the 10 and carry the 2 to the bottom of the problem and counting the lo's we find that the sum of the column of figures is 72, and at no time did we carry more than 10 numerals in the mind at one time. Therefore it is easy to see that the adding machine follows the principles of calculation used from the beginning, only relieving the mind of the drudgery of addition and the fear that some unwitting error may creep in and undo the work of hours. Most companies manufacturing equipment of this character offer only the listing machine for all types of work or the cal- culating machine to handle all types of work. STORY OF THE ADDING MACHINE 247 Some Uses for Adding and Calculating Machines DAILY USES 1. Proving Daily Postings. 2. Daily Ledger Balance. 3. Daily Cash Balance. 4. Preparing Deposit Slip in Duplicate. 5. Daily Recapitulation of Sales Cash, Credit, C. O. D., etc. 6. Checking Invoices and Frieght Bills. 7. Figuring Discounts. 8. Comparing Commissions. 9. Summary of Day's Recipts and Disbursements. 10. Figuring Estimates. 11. Ledger Posting. 12. Listing and adding yardage, feet, or weight of goods packed, received or shipped. 13. Listing and adding hours and minutes, tons, and cwt., feet, inches, and fractions of inches, and other compound numbers. 14. Posting Perpetual Inventory Records. WEEKLY USES 15. Preparing Weekly Pay Roll. 16. Making out Pay Envelopes. 17. Preparing Weekly Summaries of Labor Distributions. 18. Making Weekly Summaries of Sales by Departments, by Sales- men, by Territories, by Ledgers, by Commodities, or by any desired division. 19. Analysis of Accounts Receivable. 20. Analysis of Accounts Payable. 21. Handling Petty Cash Expenditures. 22. Compiling Change Sheet, for Pay Roll. 23. Comparative Statements of Operating Expenses and Earning.;. 24. Proving Traveler's Expense Reports. MONTHLY USES 25. Taking offTrial Balance Figures, Debits and Credits. 26. Footing Ledger Accounts preparatory to taking off Trial Balance. 27. Reconciling Check Book Balance with Bank Balance, listing number and amount of each outstanding check. 28. Making Monthly Statements, giving months, date, total of debits, total of credits. Balance and special terms or char- acters if required. 248 OFFICE PRACTICE 29. Monthly Summaries of Merchandise Sales and Profits. 30. Recapitulation of Accounts Receivable and Payable Tor Con- trolling Accounts. 31. Analysis of Accounts Receivable and Payable. 32. Compiling Statement of Production Cost. 33. Compiling Statements of Material and Supplies Used. ANNUAL USES 34. Footing inventories, calculating extensions. 35. Compiling statement of profit and loss for year. 36. Preparing of Balance Sheet. 37. Making comparative and general statistical statements. The Si-Keyboard Non-Listing, Calculating and Adding Machine The Si-Keyboard Non-Listing Calculating Machine has a standard adding machine keyboard on which problems in ad- dition, subtraction, multiplication and division may be per- formed where a printed list of items is not necessary, where all that is wanted is the answer. In the non-listing machine the rows of figures are divided into columns similar to the division of a ledger column. The first row of keys at the right of the keyboard runs from I to 9 cents, the second row of figures represent 10 cents to 90 cents, the third row I to 90 dollars, the fourth row 10 to 90 dollars, and so on across the keyboard to the ninth column, which is millions of dollars. All the numbers extend from one, at the bottom of the machine to the figure nine at the top. The first and second fingers of the right hand are always used when operating the keyboard. Naughts or ciphers add automatical- ly, therefore there are no keys for ciphers. To add by touch on the non-listing machine, proceed as follows : 1. Place a blotter or strip of paper back of the figure 5 keys. 2. Use the first and second fingers of the right hand, placing the pencil between the thumb and the palm of the hand while operat- ing the machine. This saves time in writing down results. STORY OF THE ADDING MACHINE 249 3. The even numbers, 2's and 4/5, are located by their smooth, flat key tops and by their relation to the I's and the 5's. The uneven numbers I's, 3'$, and 5's, have concave or bowl-shape key tops. The j's are located readily by their relation to the flat-top keys, 2*s and 4*8. The I's are located by their concave surface and their position at the bottom of the keyboard, while the 5*5 are located by their relation to the 4*8 and to the blotter placed back of the 5's keys. 4. Add 9 by depressing 5 and then 4. Add 8 by depressing 4 twice. Add 7 by depressing 4 and 3. Add 6 by depressing 3 twice. To add 23, plus 44, plus 65, use the first and second fingers of the right hand and depress the figure 3 in the first column to the right of the machine, with the second finger, and depress the figure 2 in the second column with the first finger. The number 23 will be recorded in the window dials at the bottom of the machine. Depress 44 and 67 will appear in the window dials as 44 has been added to 23. Depress 65 and you will notice that 132 will appear in the window dials as 65 has now been added to 23 and 44, making a total of 132. When the keys are depressed they are automati- cally released as soon as the fingers are removed. To clear the non-listing machine, turn the small handle at the right once, and all naughts or ciphers will appear in the window dials. For practice in addition on the non-listing machine, add the following problems in addition: a 10 b 23 c 94 d 76 e 14 f 12 g 87 12 43 63 45 53 35 32 21 45 78 57 17 25 25 22 53 83 56 41 42 64 23 55 12 25 15 58 21 35 33 89 31 53 75 12 54 85 44 25 78 33 33 35 62 66 23 49 47 34 42 75 57 27 57 25 35 34 86 49 52 25 68 45 45 93 80 25 71 89 44 32 35 45 35 3 97 54 33 57 32 42 25 77 33 24 13 78 29 20 98 250 OFFICE PRACTICE ADDITION 125 75 87 50 '05 05 25 oo 15 130 05 5 55 55 245 75 775 30" lo-Key Adding-Calculating Machine "Clear Machine First'' To list and add depress figures on the keyboard in the same order as if writing them with a pencil, then pull the lever. EXAMPLE: To list and add the figures shown on margin to the left. Clear the machine. Depress keys i, 2, 5, 7 and 5, and pull lever. Depress 8, 7, 5 and o, and pull lever. Continue in the same manner until all the items are listed and printed. To Take a Grand Total Before taking a total, always pull the lever once for a Hank stroke. Push in the total key with the thumb of the right hand, holding it in until the lever has started forward. The total will be printed in red and designated thus, *. DALTON CALCULATOR STORY OF THE ADDING MACHINE 251 For practice on a lo-key machine add the following: machine or on the Si-kevboard a 25 Ms e 14 d 234 e 117 f 154 g 2253 37 41 41 123 127 263 3212 45 37 25 332 128 352 3434 50 73 35 221 227 451 2345 37 47 18 134 228 511 1432 89 35 7i 245 337 512 2255 52 52 29 232 338 523 3423 19 18 92 343 349 534 1567 40 49 28 121 339 545 2366 25 90 62 333 297 517 4477 30 25 27 345 279 537 3554 20 30 75 454 107 548 3523 15 40 3Q 543 208 559 4224 42 26 95 432 309 543 4354 54 05 38 321 411 555 2535 28 95 53 125 412 198 2422 16 30 49 235 423 289 3366 47 20 15 445 434 378 1626 52 15 10 334 343 387 1411 28 18 50 223 242 478 2135 a $170.91 b $107.36 58.45 .76 c $63.55 < i $168.76 e $37.21 f $37-21 26.23 49.63 12.60 56.40 17-75 75 61.67 37-43 77.00 6.61 47-75 47.52 23.89 6.42 4.24 65.40 4977 36.26 38.52 32.44 I7-3I 27.40 45-20 45-15 29-75 50.59 6.08 4-52 84.94 71.66 6.72 421.62 11.76 29.74 9-44 101.75 4-25 45 18.10 40.70 8.65 18.65 148.39 8-93 i. 80 4-25 3-49 23.19 20.00 IO.OO 48.49 41.64 9.72 7.92 46.26 21. l6 .89 20.00 63.22 63.22 37-33 14.98 23.21 32.52 58.50 58.50 37 5-33 21.96 27.58 38.41 37.60 1-63 13.64 4.04 9-37 75-55 54-95 26.48 27.70 7.90 25.70 81.75 65.40 21-55 6.17 5-7i 24.17 72.77 72.00 I.OO 94.11 6-57 3570 4.83 19.14 252 OFFICE PRACTICE 23-30 30.54 15.00 200.30 136.70 104.83 I.OO 12.80 15-35 n-54 19.14 200.00 37-n 7.28 18.18 1 1 1 .04 .22 136.70 112.20 37 6.50 13.78 17.56 . 85.29 13.78 31-03 1.25 .42 32.28 17.56 1.62 1.88 20.61 51.64 .87 32.28 51.64 i. 80 2-55 1.88 35-94 103.54 1.88 39-35 19.32 4-35 68.58 43.62 4-35 28.16 27.20 58.67 .96 68.58 58.67 71.17 4-30 55.36 24.00 99.30 .36 7.98 9.88 4-96 55-52 24.00 3.30 8.40 52 8.50 2 -49 35-52 80.26 13.25 13.22 15.12 45.15 22.00 8.50 179.10 13-14 6.37 9-09 45.15 21.62 33-45 63-43 39-51 26.13 9.09 26.37 12.45 5-i9 60.78 49.00 26.13 I * * 123,456.78 2 11.22 * 234,567.89 3 .21 22.33 12.21 345,678.90 4 .32 33-44 23.32 456,789.00 5 43 44-55 34-43 567,890.00 6 54 55.66 45-54 678,900.00 7 .65 66.77 56.65 789,000.00 8 .76 77-88 67.76 890,000.00 9 .87 88.99 78.87 900,000.00 .98 T r\ 99.11 89.98 r\T T T .19 Vl . 1 1 .12 * 876,543.21 23 * 22.11 * 987,654.32 34 3-21 33-22 12.31 98.765.43 45 4-32 44-33 23.42 9.876.54 56 5-43 55-14 34-53 987.65 -67 6-54 66.55 45-64 98.76 . 7 8 7 .6 5 77-66 56.75 9.87 -89 8.76 88.77 67.86 .98 9i 9-87 99.98 78.97 .09 i. 9 8 i rr 11.99 89.18 ro ir STORY OF THE ADDING MACHINE 253 1.23 2.34 3-45 4.56 5.67 6.78 8.91 9.12 43.21 54-32 6543 76.54 98.76 19.87 21.98 32.19 112.33 223.44 334-55 445-66 556.77 778.99 889.11 991.22 21.12 32.23 43-34 54-45 76.67 87.78 98.89 19.91 1,122.33 2,233.44 3>344-55 4,455-66 5,566.77 6,677.88 8,899.11 9,911.22 12.34 V 23-45 * 10.02 | 34-56 543-21 2O.O3 I2.OO 45-67 654-32 30.04 23.00 56-78 765-43 40.05 34-00 67.89 876-54 5O.O6 45-oo 78-91 987-65 60.07 56.00 91.23 219.87 80.09 78.00 3 2i. 9 8 9O.OI 89.00 432.19 91 .00 12,233.44 23,344-55 34,455.66 45,566.77 56,677.88 67,788.99 78,891.22 91,122.33 56.46 77.66 868.67 31347 34-24 99.88 676.34 745-74 78.78 24.35 353-5<> 565-67 45-45 - 46.68 667.65 343.24 34-23 58.69 454.68 464.53 89.89 23-23 456.43 756.56 68.46 44-34 634.34 123.12 23.56 77-55 867.56 232.35 34.12 35-36 754-34 544.56 5746 57.67 367.89 333-45 35-68 99-77 234-56 453-42 H.I3 11.33 323-89 674-53 56.45 26.48 567.89 246.35 44-34 38.59 434-12 794-51 77-56 65.86 167.45 545.67 89,767.49 67,545.66 54,232.25 65,056.06 70,500.07 65,350.03 46,060.79 76,050.07 65,405.98 87,660.67 91,919.19 19,191.91 64,336.05 75,000.76 60,000.06 254 OFFICE PRACTICE 33-22 47.24 245-34 634.34 11.44 53-6S 334-23 654.23 33.77 46.76 489.89 342.45 66.88 45.65 535-35 65578 46.46 2343 635.13 742.46 57.13 67.44 746.23 533-35 68.78 55-33 143.34 342.35 34-23 656.76 1,231.34 324.66 50,605.70 78.56 445-44 2,33346 650.68 30,400.72 34-79 545-79 3,225.67 760.55 20,704.09 56.45 751-24 4,434.58 405.08 80,020.06 24-23 336.79 5,212.35 760.54 86,006.78 64.24 655-76 6,567-67 456.54 40,450.45 32.43 466.35 7-657.79 343-44 54,023.07 88.76 336.78 8,655.68 705.07 76,045.04 46.55 876.44 9,545-45 466.07 13,030.23 65-43 455-47 6,454-55 3I7-89 42,032.30 77-66 343-45 9,866.44 750-56 50,506.07 34-23 456.34 7,867.56 455.60 65,070.08 78.78 123.12 4,534-23 606.04 70,000.08 77.66 223.21 1,212.45 333-02 40,530.40 24.11 334.56 4-332.34 667.07 23,304.40 35-45 545-66 7,554-55 908.60 64,045.08 67-57 64345 4,564.37 303.32 70,550.06 78.78 989.68 8,784.58 205.50 58,066.77 34-34 556.57 6,767.34 678.47 67,605.06 35-12 232.34 3,434.56 453.04 56,024.03 45-54 535-43 6,076.77 635-07 35,045-02 2637 2162 850 8126 330 36 5867 345 188 5164 162 1378 1 1 220 37ii 100 2330 100 2155 2648 163 37 3733 4626 2000 14839 425 672 2975 3852 2389 6167 12663 5845 17091 1245 4443 17910 1323 840 798 7117 2816 3935 1 80 1 88 3103 37 728 9411 3054 1280 617 2770 1364 533 1498 2116 IOOO 893 45 4262 559 3244 642 3643 4963 STORY OF THE ADDING MACHINE 255 76 10736 519 6343 I3H 1322 52 988 330 2720 1932 255 2061 125 650 1818 657 1500 1533 571 799 404 2196 2321 89 4849 1 80 1810 1176 608 1731 424 7700 1260 6355 16877 6078 3951 637 1512 850 495 5536 5867 435 1 88 5164 42 1378 IIIO4 3570 2130 "54 2417 2570 937 2758 3252 20OO 4164 425 4070 2975 452 2740 6540 661 5640 16876 98264 4900 2613 909 4515 249 5552 24OO 96 6958 4594 87 3228 1756 22 483 13676 1914 7277 8175 7555 3841 5850 6322 972 349 865 944 7494 4520 4977 4752 1775 3721 79281 4976 2613 909 4515 2200 5552 2400 9930 6958 4362 10354 3228 1756 8529 10483 20000 13670 1914 7200 6540 5495 3760 5850 6322 792 2319 1865 IOI75 7166 4515 3626 4752 75 3721 1122 33 2233 44 3344 55 4455 66 5566 77 6677 88 7788 99 8899 oo 1928 37 2837 26 3746 15 4655 04 5564 93 6473 82 7382 71 8291 60 23384 57 34457 66 45566 75 56657 84 67748 93 78839 02 89920 n 90019 oo 56748 39 47389 20 38290 19 29101 oo 10090 99 21543 76 32654 87 43765 98 30766 45 68993 04 93947 70 20636 78 42948 23 58551 93 40325 63 89709 50 89994 71 31953 33 48139 65 26254 17 86219 59 51343 77 98033 07 14281 91 2 5 6 OFFICE PRACTICE 9100 59 6547 38 5468 27 4359 16 3240 05 2130 95 1029 83 8765 45 7654 32 6543 21 5432 10 4321 09 3210 98 2IOQ 87 1098 76 6543 09 1234 S^ 4567 09 2145 76 3987 20 3456 87 1254 67 6291 56 8016 45 2569 23 7432 98 3905 12 7234 98 3926 15 54876 09 65987 10 76098 01 87109 90 98090 01 90123 84 89234 75 78345 66 67567 57 56678 48 45789 39 34890 20 23901 19 12092 68 10293 48 29384 57 38475 66 47566 75 56657 84 65748 93 74839 02 83920 ii 92011 oo 61728 39 52817 20 43906 ii 32015 02 25924 83 10293 48 18581 56 67062 82 45025 98 52134 83 99305 92 94406 26 87620 23 95757 69 74901 74 13001 57 3536o 04 68592 19 68657 42 77528 36 46169 ii 26766 39 99935 49 52415 42 98974 03 62315 47 13618 03 32679 13 11776 51 80214 94 92136 92 97456 91 26185 6 77084 01 64985 10 Vertical and Horizontal Adding Check by adding the two sets of totals. 1382.57 I45-67 5I7-57 41.69 128.50 318.59 675-39 13.20 1.48 5H8.57 148.50 2153-49 219.38 2741.50 123.89 41.50 3189.47 31-68 120.83 87.50 3I7-50 1476.20 3181.49 815.40 I587-39 1276.39 416.59 318.29 41-39 1.29 1487.39 4813.29 STORY OF THE ADDING MACHINE 136.29 312.68 69.05 413-20 415-49 4191.28 1005.47 518.69 31.59 9147.38 3i6,49 87.50 106.59 318.57 219.47 139-50 51.40 51-79 1509.30 1287.39 i-59 316.59 4812.06 1483.20 3158-47 598.39 3762.17 318.20 415.48 51-49 147.48 13.20 31.68 319.57 3182.48 1476.39 257 Vertical and Horizontal Adding Check by adding the three sets of totals. $126412.80 $214621.64 $620177.25 98536.41 92684.75 516214.29 232714.18 169295.75 1019027.60 6812.00 35789-44 261426.41 982.75 18927.95 721164.74 12568.30 374261.42 289946.36 229942.78 126406.74 191472.45 8362.40 692416.24 64124.75 226491.37 742467.48 12012.40 26054.90 62145.67 916938.45 426834.72 521207.84 7518.95 82964.35 37292.20 16219.75 3594827.20 12040.00 1752.64 7960.00 7245.69 121490.75 86521.46 36047.46 69876.62 754376.50 694116.52 724138.75 1016823.25 721205.11 126421.26 62943.12 62147.01 217221.64 4836.90 741627.03 69214.75 927859.46 621264.75 211169.41 26258297.74 69128.60 99940.69 126129.45 120156.39 72126.73 968528.17 992017.29 251327.14 14912.18 121202.60 1626.47 251927.86 101427.65 7212.45 46532.45 241659.64 418.37 22614.92 69398.95 158739.27 258 OFFICE PRACTICE Adding Fractions Where common fractions are to be added frequently, the use of a fractional machine simplifies the operation. All calculators and adding machines are built in 4ths, 8ths, and I2ths fractional models. A special machine for handling English Currency is also furnished (known as the sterling machine). Note: The fractional section of machines cannot be used for multiplication. Where a limited amount of fractional addition is required, common fractions may be converted into decimals and added on a standard keyboard. Common Fractions Decimal equivalents of common fractions on this page should be memorized. Change fractions to decimal equivalent before adding. 4ths. 1/4 .= .2 5 3/4 = -75 3rds. 1/3 = 3333 1/2 = 5 2/3 = .6667 Add 34 1/2 21 3/4 30 1/4 Add 36 i/3 57 1/3 51 2/3 432 35 12 3/4 57 3/4 i 12 2/3 227 98 1/2 45 3/4 13 98 2/3 394 2/3 49 3/4 51 1/4 32 i/4 5 1/2 H5 4/8 152 85 i/3 6ths. 1/6 =.l66 7 5/6 = .8333 8ths. 1/8 = . 125 5/8 = .625 2/6 = 3333 2/8 = . 25 6/8 = 75 3/6 = -5 3/8 = . 375 7/8 = , 875 4/6 = .6667 4/8 = . 5 Add 54 1/6 26 1/2 31 1/6 Add 27 1/6 58 i/4 79 1/8 27 1/4 45 1/3 89 2/3 139 3/8 47 5/6 49 3/8 31 2/3 53 3/4 17 241 5/6 42 3/4 52 7/8 51 5/6 69 1/6 38 i/3 189 1 4 53 1/6 78 58 I2ths. 1/12 = 0833 4/12 = 3333 7/12 = 5833 IO/I2 = . 8333 2/12 = .1667 5/12 = .4167 8/12 = .6667 11/12 = . 9167 3/12 = 25 6/12 = 5 9/12 = 75 Add 52 I/I2 56 1/4 79 i/3 139 5/12 5 2 7/12 37 2/4 95 1/3 136 1/8 30 5/8 397 2/3 75 42 2/3 84 3/4 694 61 i I/I2 4i 3/4 153 1/2 27 5/6 27 I I/I 2 154 * /4 STORY OF THE ADDING MACHINE 259 Multiplication on the 8i-Key Calculating Machine (Non-listing) Multiplication is another form of addition 9X3 equals 27. This result may be obtained on the calculating machine by adding 9 three times as 9 plus 9 plus 9 equals 27, or by adding 3 nine times as 3 plus 3 plus 3 plus 3 plus 3 plus 3 plus 3 plus 3 plus 3 equals 27. In the first method we depressed the nine key on the keyboard three times, while in the second method we depressed the three key nine times. One can readily see the first method gives greater speed in the operation. This same idea is used in multiplication on this machine. Multiply the following on the non-listing machine: Example: Multiply 345 by 57 Place the first and second fingers on the keys that represent 57. Depress these 5 times. Move the fingers one column to the left (holding 570) and depress 570 four times. Move the fingers another column to the left (holding 5700) and depress 5700 three times. The operation is now complete and the result, 19665, appears on the adding dials at the bottom of the machine. Multiply the following. Verify all the extensions on all the invoices received in the bookkeeping department. a 563 by 57 b 45 by 56 c 683 by 35 d 386 by 89 457 by 23 67 by 35 276 by 35 307 by 25 606 by 89 64 by 87 543 by 85 286 by 76 478 by 36 45 by 23 379 by 42 322 by 86 425 by 46 36 by 63 275 by 66 648 by 98 e 326 by 94 f 678by 56 g 756 by 54 498 by 76 076 by 65 354 by 75 763 by 34 349 by 43 657 by 56 345 by 89 326 by 92 568 by 76 756 by 64 892 by 79 493 by 32 657 by 24 248 by 82 742 by 49 260 OFFICE PRACTICE lo-Key Listing Machine Multiplication "Clear Machine First" EXAMPLE No. i: Multiply 579 by 243. First de- 5 79 press the multiply key, locking it down by a slight 5 79 forward pressure. Write on the keyboard the 5 79 multiplicand (579). Now pull the operating lever 57 90 as many times as there are units in the right- 57 90 hand figure of the miltiplier (3); depress the cipher 57 90 key with the index finger of the left hand; pull the 57 9 operating lever as many times as there are units 579 oo in the second figure of the multiplier (4); depress 579 oo the cipher key again, then pull the operating lever twice for the remaining figure of the multiplier, 1406 97* releasing the multiplying key JUST BEFORE THE SECOND STROKE. When multiplying by the last 01 left-hand figure of the multiplier, ALWAYS release the multiply key just before the lever starts for- ward for the final stroke. Then after taking a blank stroke, take the total as in addition, which will be the product. Note: Multiplication on the lo-key machine is very rapid and the paper tape constitutes a PHYSICAL RECORD of the work, which can be audited at a glance. Example No. i, for instance, enables the eye to see quickly that the multiplicand was 579, and that it was multiplied two ~Q ^Q times in the hundreds column, four times in the tens 7 column, and three times in the units column, and that 4 the sum of the amounts must of necessity be the product. 794 oo EXAMPLE No. 2: Multiply 794 by 320. If the 794 oo multiplier ends with ciphers to the right, add an equal number of ciphers to the multiplicand before 2540 80* pulling the operating lever, then proceed to multi- ply as usual. * EXAMPLE No. 3: Multiply 2143 by 3050. If inter- 214 30 mediate ciphers appear between the figures of the 214 30 multiplier, it is necessary after multiplying by the 214 30 figure preceding the cipher to depress as many 214 30 additional ciphers as there are intermediate ciphers STORY OF THE ADDING MACHINE 261 214 30 21430 oo 21430 oo 21430 oo 65361 50* '235 25 235 25 235 25 235 25 235 25 2352 50 2352 50 23525 oo 235250 oo 235250 oo 235250 oo 235250 oo 2352500 oo 2352500 oo 2352500 oo 8027906 25* in the multiplier. These are in addition to the single cipher always struck as explained in Example i. If there is one intermediate cipher, two ciphers must be depressed; if two intermediate ciphers, three must be depressed, etc. Multiplication by Fractions "Clear Machine First" To multiply by fractions, reduce the fraction to a decimal and multiply as in ordinary multiplica- tion, always remembering to point off as many decimals in the PRODUCT as there are decimals in BOTH the MULTIPLICAND AND MULTIPLIER. EXAMPLE No. i : 2351/4x341/8. 235 1/4 equals 235.25 and 34 1/8 equals 34.125. Put 235.25 in the keyboard in the ordinary way and multiply by 34.125. Point off five decimals to the right, so that the product is 8027.90625. This example is worked out in full on the margin. Common fractions that cannot be made into round decimals can be handled in the same manner by running out two or three additional decimal points in both the multiplicand and the multiplier containing such fractions. Multiplication Beyond the Capacity of the Machine "Clear Machine First" 42345600 EXAMPLE^NO. i: Multiply 423456 by 41.23. This 423456 oo method of multiplication utilizes the back space 423456 oo key and is of practical value where large decimals 423456 oo are being multiplied and where accuracy to the 42345 60 final decimal is not essential. It is also used in 4234 56 Division by Reciprocals reducing Division to 4234 56 Multiplication. As the multiplicand in this in- 423 45 stance contains six figures and the multiplier four, 423 45 the result may contain ten figures, one more than 423 45 the capacity of a 9-column machine. Set up the multiplicand, adding as many ciphers as there are 1745909 07* figures in the multiplier, less one. (If this will 262 OFFICE PRACTICE make more than eight figures in all, drop enough of these ciphers to reduce it to eight, as no more than eight figures should be put into the machine.) Set up 42345600. Depress the multiply key. Now multiply in the usual manner, but beginning with the left-hand figure of the multiplier (4). Depress the back space key once and multiply by the next figure of the multiplier (i), and so on, multiplying by the 2 and 3 and depressing the back space key once before each multiplication. Release multiply key before the final stroke as in ordinary multiplication and take total in the usual way. Pointing Off Decimals Trie number of places to be pointed off in the result is the total number of decimal places in both multiplicand and multiplier, less the number of figures omitted from the multiplicand, which can be determined by a glance at the last figures listed in making the multi- plication. In this instance there are in all five decimal places, but the last figures listed (42345) show that one figure is omitted. We therefore point off only four places in the result. Multiply the following, using either style of machine: 25 16 27 14 19 16 X3 X3 X3 X3 X4 X4 15 18 16 14 16 28 74 x5 x5 XQ xy X5 x6 x2 4659 x 56 2534 x 63 6424 x 75 7212 x 56 1827 x 65 1324 x 85 1475 x 64 2145 x 96 2144 x 48 3432 x 69 1621 x 36 1367 x 32 Verifying Invoices "Clear Machine First" This example Where it is only necessary to know that the total shows physical amount of invoice is correct, it is better to multiply verification of the number of items by the price WITHOUT taking STORY OF THE ADDING MACHINE 263 invoice shown on this page. 2 75 2 75 27 50 3 25 3 25 3 25 3 25 3 25 32 50 i i 50 50 15 oo 15 oo i 75 i 75 i 75 i 75 121 75* An audit slip same as above should be pinned to each invoice. Extend the amount due: 16 articles 14 articles 37 articles 28 articles 364 bbls @ 988 bbls @ 640 bbls @ a total after each multiplication, thus permitting the amounts to accumulate in the machine and, enabling you to take a grand total at the END or LAST multiplication, which will be the amount of the invoice. The illustration on the margin hereof is a PHYSICAL VERIFICATION of the invoice which follows; and was done by making all the multiplication BEFORE taking the total: 12 Pairs of Shoes at $2.75 $33.00 15 " " " " 3.25-48.75 22 " " " " 1.50 33.00 4 " " " " 1.75- 7-00 $121.75 When a series of multip lications are to be made it has been found to be advantageous to lock the multiply key down. Depress keys representing the first multiplicand, multiply in the regular way and be sure to remove figures of the multiplicand from the keyboard by depressing the correction key before taking the total and then continue with the next multiplication in the same manner. It is important that the multiply key be released after the series of multiplications has been finished. following bills and by addition find the total @ $3.34 each @ 4.25 each @ 2.43 each @ 5.63 each $2.46 each 4.67 each 3.25 each 34 yds 28 yds 64 yds 36 yds $2.75 each 3.25 each 4.54 each 5.85 each 1829 bus. @ 4276 bus. @ 2864 bus. @ 2713 bus. @ 3645 bus. @ $0.48 each .98 each .64 each .75 each .87 each 264 OFFICE PRACTICE Multiply the following: 326 x 394 678 x 756 756 x 542 536 x 782 498 x 576 976 x 657 354 x 756 412 x 382 763 x 342 349 x 234 657 x 756 776 x 667 954 x 786 987 x 467 567 x 756 721 x 789 756 x 342 654 x 854 123 x 456 720 x 890 354 x 895 326 x 926 394 x 574 234 x 432 756 x 764 467 x 345 493 x 313 475 x 786 761 x 721 892 x 762 645 x 657 674 x 687 982 x 346 497 x 497 529 x 629 222 X 565 280 x 388 649 x 986 547 x 562 296 x 782 743 x 326 496 x 689 629 x 492 998 x 788 542 x 467 455 x 596 989 x 323 864 x 246 632 x 674 324 x 432 549 x 656 357 x 975 497 x 746 134 x 567 554 x 779 123 x 456 386 x 497 326 x 467 629 x 886 234 x 678 432 x 856 674 x 746 529 x 669 456 x 789 956 x 326 396 x 497 889 x 882 890 x 987 785 x 498 432 x 856 552 x 999 618 x 723 346 x 763 956 x 326 728 x 659 705 x 865 395 x 954 785 x 498 990 x 772 742 x 567 787 x 989 346 x 763 720 x 820 125 x 567 542 x 354 395 x 954 729 x 770 155 x 191 678 x 756 787 x 756 729 x 652 246 x 282 976 x 657 542 x 354 765 x 789 157 x 393 547 x 756 354 x 756 234 x 892 657 x 246 882 by 21 H95763 by 28 514958 by 724 384756 by 635 713 by 31 4158673 by 29 415967 by 482 495872 by 642 9702 by 42 4159673 by 26 413947 by 526 394857 by 651 3074 by 53 1495516 by 36 405967 by 512 203857 by 667 13889 by 43 4158684 by 37 915968 by 474 148573 by 672 10695 by 23 4159673 by 38 98.6158 by 532 148653 by 684 15408 by 24 5168674 by 39 596854 by 546 148572 by 687 14075 by 25 H95743 by 52 395394 by 557 158673 by 692 8476 by 26 1495742 by 43 159674 by 568 158674 by 703 101432 by 31 5149573 by 42 495873 by 579 158673 by 714 145056 by 32 5169654 by 57 159573 by 582 H8573 by 723 156156 by 33 7859430 by 44 394857 by 591 948573 by 736 287420 by 34 7189543 by 54 915873 by 616 495874 by 742 2958674 by 35 1596765 by 46 158673 by 624 495867 by 753 STORY OF THE ADDING MACHINE 265 Subtraction on the io-Key Machine "Clear Machine First" SUBTRACTION List the minuend as for addition. Write the sub- EXAMPLE No. I trahend on the keyboard, but before pulling the lever, depress the non-add key, holding it down until the forward stroke is completed. The sub- * trahend will now be designated V. Then rewrite 245 79 the subtrahend, this time using the red figures 130 68V on the keyboard. Depress the subtraction key and pull lever. The subtrahend will now be 115 ii* further designated by the sign - . The total is then taken as for addition. See example in mar- gin to the left. Correction by Subtraction EXAMPLE No. 2 To subtract an erroneous amount (see "Correction by Subtraction Key"), turn the platen until the * amount to be subtracted is just above the top of 2 25 the ribbon. Then rewrite the erroneous amount ii 50 on the keyboard using the red figures. Depress 66 15 subtraction key and pull lever. The amount sub- 2 4S 79 ~ tracted will be designated by - . Addition may 34 57 now be resumed. In Example No. 2, $245.79 was 76 50 erroneously added, and then subtracted in this manner. 190 97* Subtraction on the 8i-Key Machine (non-listing) . The small figures on the keys "of the keyboard of the non- listing machine are for the use of problems in subtraction, the large figures being used for problems in addition and multipli- cation. The complement of a number is the difference between that number and the next higher power often. The complement of 2 is 8, as 2 subtracted from 10 leaves 8 or 8 added to 2 equals 10 (10 is the next higher power of 10 in this case). The small figures on the keys of the keyboard indicate the 266 OFFICE PRACTICE complements. It is not necessary to make any mental calcu- lation; simply depress the number less one unit, according to the small figures; the dials at the bottom of the machine will show the complement of the number. Thus to get the com- plement of 7 depress the small figure 6, which is one unit less than 7; for 38 depress the small figures 37; for 3467 depress the small figures 3466. (This extra one is eliminated by means of the "9" key at the top of the machine and to the left of the amount.) To subtract on the non-listing machine observe the following instructions: 1. Put the larger number of your problem (minuend) in the machine by depressing the figures of the number (large figures). 2. Depress the amount to be subtracted, according to the small figures, less one on the right-hand figure. 3. Depress all the 9's to the left of the columns in which the com- plement was added. Examples: From 456 subtract 244. Put 456 in the machine by depressing the keys 4, 5, and 6, using the large figures. Depress the small figures 243 (which is one unit less than 244). Depress the 9 keys at the top of the machine to the left of the third column. Result is 212. Subtract the following: 3412 from 4321 3454 from 9865 6786 from 9876 4785 from 4865 2186 from 4386 4354 from 6354 6543 from 9876 2986 from 4354 4354 from 6354 7685 from 8967 1865 from 4321 5555 from 6543 4523 from 6542 4865 from 43214 6654 from 8654 9820 from 9878 6542 from 8643 7342 from 8651 31378 from 34329 2186 from 6873 1648 from 3648 5645 from 9678 4265 from 4821 6543 from 7654 74654 from 98837 4321 from 8678 4386 from 5436 2186 from 2746 2648 from 4321 7656 from 8642 STORY OF THE ADDING MACHINE 267 Add the two columns of the Trial Balance given in Chapter Three. Is the debit side equal to the credit side? If so the hooks from which the Trial Balances were taken are in balance and the posting to the Ledger was correctly done. In the Cash Accounts, add the Receipts of Cash and the Pay- ments of Cash. Find the Balance of Cash by subtracting the total receipts from the total payments. Subtract: 24 from 189 35 from 176 37 from 198 42 from 256 48 from 239 56 from 378 63 from 496 68 from 299 74 from 589 79 from 482 82 from 293 84 from 356 86 from 467 95 from 382 WALES LISTING MACHINE The listing machines are operated by depressing the keys representing the figures in the items desired and pulling the 268 OFFICE PRACTICE operating handle. The result will be shown on the dials at the front of the machine, and will also be printed on the paper at the back of the machine. The machines are cleared by pulling the handle until an asterisk, star, letter T or O, or some signal is given to indicate that the machine is clear. SUPPLEMENTARY EXERCISES The McGill Company has customers and creditors in every state throughout the United States. The list of these business concerns with business and address follows: Name of Firm White, Frank Wilson, Arthur Atlantic & Pacific Tea Co. Abraham & Straus Anderson & Mead Co. (The) Davidson, John, & Son Dillon, James, & Son Macy & Co. (Inc.) Macy, R. H., & Co. Walters, Henry Lyons, Charles W. Lawrence, Louis E. Holt, Henry, & Co. Harris & Givens Co. Robinson & Gray Newman, Joseph (Inc.) Walman, Michael, & Sons Vogel, George McGillavery O'Brien, Frank, & Co McConnell, Dr. R. W. MacDowell, James Butler Brothers Swift & Co. Bryant & Co. Smith, The George Co. McNeill, Matthew, & Bros. Oppenheimer, James, & Bro. Smith & Jones Stewart, Charles J. Business Grain Dealers Wood Grocers Dry Goods Grocers Grocers Automobile. Wiring Dry Goods Woolens Upholsterers Grocer Publishers Insurance Insurance Publishers Grain Dealers Express Flour & Grain Dealers Plumbing Supplies Chemists Supplies Machinery Flour & Grain Meat Packing Fruit Growers Lawyers Chemists Ventilating Printing Dairy Products Address Delta, Colo. Oakland, Cal. Jackson, Miss. Brooklyn, N. Y. New Haven, Conn. Topeka, Kan. Jefferson, Mo. Dallas, Tex. New York, N.^. Concord, N. H. Topeka, Kan. Annapolis, Md. New York, N. Y. Waterbury, Conn. North Adams, Mass Macon, Miss. Topeka, Kan. Dover, Del. Phoenix, Ariz. Lansing, Mich. Raleigh, N. C. Detroit, Mich. Chicago, 111. Chicago, 111. Jacksonville, Fla. Atlanta, Ga. Baton Rouge, La. Salem, Oreg. Boise, Idaho. Rutland, Vt. STORY OF THE ADDING MACHINE 269 Name of Firm Ziegler, Joseph Zimmerman, Edward Henderson, James Jackson, Thomas Cavanaugh, Julia M. Baldwin, Serchson, & Co. Columbus Security Co. (The) McDevitt, Wm. E. Townsend, John K. Underbill, Francis Wright, Benjamin Young, Clarence O'Mara & Ormsbee Lewis, Maurice Leonard, Walter Walsh, George Wallace, Edward Thompson, Jerome Taylor, Henry S. Miller, C. O., & Co. Brown & Co Robinson Mercantile Co. Ober, Theodore Gleason, James Farrell, James T. McDowell & Kennedy MacKee, Frederick Shaw, James Silverman, George H. Delevan & Co. (Inc.) O'Neara Coal Works (The) O'Neill Land Co. (The) Quinlan, Frank R. Murphy & Henderson McNulity & Bro. Reilly, John F. Curtis, The Henry, Co Evans, Samuel Watkins, David Wendal, Eugene Williams, George Wilson, Thomas Matthews, Wm. T. O'Connell, Richard MacNeil, Thomas G. Business Real Estate Stationery Real Estate Stationery Lawyer Grocers Bonds & Securities Tailor Flour & Grain Printing Bankers Advertising Advertising Express Butcher Flour & Grain Dry Goods Commission Merchant Lawyer Grocers Accountants Furniture Automobiles Flour & Grain Tailor Photographers Wiring Grocer Flour & Grain Stationery Coal & Wood Real Estate Potato Dealer Fruit Farmers Flour & Grain Architect Engineers Commission Agent Advertising Furniture Carpets Grocer Carpets Advertising Butcher Address Akron, Ohio. Omaha, Nebr. Salt Lake City, Utah. Jefferson, Mo. New York, N. Y. Columbus, Ohio. Columbus, Ohio. Helena, Mont. Rawlins, Wyo. Dixon, Mont, Safford, Ariz. Milton, Mont. New York, N. Y Austin, Tex. Bangor, Maine. Key West, Fla. Savannah, Ga. Nashua, N. H. Augusta, Maine. Portland, Maine. Dallas, Tex. Birmingham, Ala. Cheyenne, Wyo. Ogden, Utah. Montpelier, Vt. Wilmington, Del. Hartford, Conn. Houston, Tex. Boise, Idaho. Lincoln, Nebr. Harrisburg, Pa. Philadelphia, Pa. Bangor, Maine. Niagara, N. Y. Frankfort, Ky. Portland, Ore. Burlington, Vt. Ogden, Utah. Newport, R. I. Astoria, Oreg. Detroit, Mich. Selma, Ala. Prescott, Ariz. Hamilton, Ohio. Salem, Ore. 2 7 OFFICE PRACTICE A ame of Firm Maguire, George D. Wilson, The Sargent Co. Cahill Railway Co. MacDonald & Rich (Inc.) O'Connell, Michael J. Co. Palmer, Arthur R. Peterson & Jameson Walker, Sidney Warner, Edward Scanlon, Michael Robertson, James, & Co. Upton, Wm. H., & Bro. Vincent, Charles B., & Co. Alden, The Henry Co. Arnold, Frank J. MacHenry Establishment O'Gorman, Wm. S. American Can Co. American Lead Pencil Co. American Printing Co. Atlas Portland Cement Co. Brown & Sharp Mfg Co. Brinks Express Co. Bryant Electric Co. Cadillac Motor Car Co. Chester National Bank Corn Exchange National Bank Evening News Association Farmers National Bank Flat Top Insurance Co Franklin Sugar Refining Co. Hackett Coal Co. Holeproof Hosiery Co. Kennedy Biscuit Works Mammouth Garage Mellon National Bank National Cash Register Co. National Sugar Refining Co. Pennsylvania Trust Co. Primos Chemical Co. Russell Mfg. Co. (The) Scranton Coal Co. Splitdorf Electric Co. Victor Talking Machine Co. Walworth Manufacturing Co. Business Express Commission Agents Electrical Supplies Commission Agents Accountants Woollen Goods Fruits Chemist Bankers Printing Grocers Commission Agents Grocers Bankers Advertising Electricians Engineer Canning Supplies Pencils Printers Cement Manufacturers Express Electrical Supplies Automobiles & Supplies Bankers Bankers Publishers Bankers Insurance Sugar Coal Hosiery Biscuits Garage Banking Cash Registers Sugar Bankers Chemists Manufacturers Coal Electrical Supplies Victrolas Manufacturers Address Buffalo, N. Y. Louisville, Ky. New Haven, Conn. Providence, R. I. St. Louis, Mo. Adams, Mass. Tampa, Fla. Lexington, Ky. Pierce, Idaho. Atkinson, Nebr. Monterey, Cal. Richfield, Utah. Baltimore, Md. Helena, Mont. Pittsburgh, Pa. Denver, Colo. Los Angeles, Cal. Bridgeport, Conn. Hoboken, N. J. Fall River, Mass. New York, N. Y. Providence, R. I. Chicago, 111. Bridgeport, Conn. Detroit, Mich. Chester, Pa. Philadelphia, Pa. Detroit, Mich. Pittsburgh, Pa. Bluefield, W. Va. Philadelphia, Pa. Cedar Grove, W. Va. Milwaukee, Wis. Chicago, 111. Reading, Pa. Pittsburgh, Pa. Dayton, Ohio. Long Island City, N. Y Reading, Pa. Promos, Pa. Middletown, Conn. Scranton, Pa. Newark, N. J. Camden, N. J. Kewanee, 111. STORY OF THE ADDING MACHINE 271 Bookkeeping Problems Using the following Trial Balance: i. Open Accounts entering the Debits and the Credits. Make a Trial Balance. Close the Accounts Make out a Balance Sheet. Make out a Profit and Loss Statement. Trial Balance THE JULIA RICHMAN CORPORATION Proprietor's a/c Cash Notes Receivable Notes Payable Merchandise Purchases Merchandise Sales Furniture & Fixtures Expense Real Estate (Cost us) John Rupert Samuel Raymond Henry Johnson Reynolds & Co. Jones & Son In the above Trial Balance allow the following: Furniture & Fixtures Depreciation IO% Merchandise Inventory $500 Expense Inventory #500 Real Estate Depreciation 5% Dr. Cr. 42783.66 40000.00 6289.03 1500.00 660.00 500.00 1600.00 9687.36 185-50 7938.67 293-I5 1645.00 735-00 IOOO.OO 30.00 1316.20 92.13 70.00 88.60 749-30 272 OFFICE PRACTICE Listing and Non-Listing Machines APPLICATION OF ADDITION to TRIAL BALANCE of THE JULIA RICHMAN CORPORATION Add Debits and Credits of this Trial Balance: (If machine shows that the Debit side equals the Credit side, bookkeeper's accounts balance.) TRIAL BALANCE of THE JULIA RICHMAN CORPORATION July 12, 1921 Dr. Or. J. R. Corporation (Prop's a/c) 40000.00 Cash 42783.66 6298.03 Notes Received 1500.00 500.00 Notes Payable 669.00 1600.00 Merchandise 9687.36 7838.67 Furniture & Fixtures 185.50 Expense 293.15 Real Estate (Cost us) 1645.00 John Rupert 765.00 160.07 Samuel Raymond IOOO.OO 1316.00 Henry Johnson 92.00 70.00 Reynolds & Co. 88.60 M. Jones & Son 749-30 STORY OF THE ADDING MACHINE 2/3 TRIAL BALANCE of THE JULIA RICHMAN CORPORATION July 20, 1921. J. R. Corporation (Prop's a/c) Cash Merchandise Expense Office Fixtures Notes Received Notes Payable Ferris & Co. French & Co. Harris & Co. Johnson & Co. 196.00 6220.00 4942.69 3358.50 8740.00 5065.40 450.00 187.50 780.00 254.70 540.00 1046.00 1045.00 745.00 198.13 75-6i 72.60 487.20 192.60 92.11 Using the following data, make out a balance sheet of present date for The Julia Richman Corporation, 421 East 88th Street, New York: Cash on hand $987.50. Cash in bank $458.76. H. Harris owes us $529.50. J. Brown owes us $873.72. Merchandise Inventory on hand $986.75. Accounts Receivable: T. Black $451.21. Rawkins & Son $386.10. Smith & Foley $735.45. Lane & Court $254.78. James Talbott $143.25. Babott & Bros. $345.78. Brackon & Jones $251.59. H. Hogan $974-45- J. Avery $471.45- 274 OFFICE PRACTICE Notes Receivable $396.75. Furniture & Fixtures $263. Notes Payable $473.56. Mortgage Payable $875.50. Loans Payable $526.40. We owe J. Harrison $264.87. Accounts Payable: B. Black $173.89. T. Thompson $184.65. H. Howell $184.56. J. Samuels $236.47. C. Lawrence $452.68. H. Williams $256.70. Find the Capital or the Present Worth. Accounting and Business Practice, First Term 1. On Jan. I, 1920, A. H. Warner began business investing cash $3500. On Dec. 31, 1921, his books show the following facts: His bank balance is $5461.20. He has $174.78 in the cash drawer. An inventory of merchandise shows that his stock is worth $3475. He values his furniture and fixtures at $820. There are office sup- plies worth $35 on hand. He owes A. D. Smith $2345 f r mer- chandise purchased during the year. S. E. Dodge owes him $365, and F. A. Walton $250. A note due at the Commercial Bank for $2500 will fall due in 60 days. He has in his possession a note signed by F. S. Good for $1500. Make out a Balance Sheet to show A. H. Warner's Present Worth, and Net Gain for the year. 2. Your bank balance in the Commercial Exchange Bank on May ist was $2305.18. May ist you paid rent, $75.50, to the landlord, A. C. Hart. May 2nd you bought of E. S. Harris 375 yards of silk a: .*? a yard, terms 5/io.n/3O. STORY OF THE ADDING MACHINE 275 Gave your check in full payment less discount. May 3rd you deposited contents of cash drawer, $176.85. May 4th deposit I. E. Wells check for $368.60. (a) Write check of May 2nd. (.b) Show records kept by you on your check book. (c) The bank balance as shown on bank statement is $1995.63. Make up a reconciliation statement to account for dif- ference shown by your check book. 3. T. A. Walsh's books show the following accounts: Purchases Inventory Apr. i 2328.50 3 694.75 19 468.59 Apr. 7 47.85 Apr. i 3400.00 Sales Apr. 20 165.20 Apr. 2 265.00 12 1938.50 19 2867.75 30 3126.50 Apr. Furniture & Fixtures Apr. i 900.00 Expense i 426.00 15 69.85 30 126.00 On April 3Oth inventory of mdse shows $3120 worth of goods on hand. The office supplies on hand valued at $63.85. The furniture and fixtures have depreciated 10%. Close the above accounts and set up a Loss and Gain Account showing F. A. Walsh's net gain for the month. 276 OFFICE PRACTICE V 4. Henry Collins, of Louisville, Kentucky, bought of Harri- son & Smith, of Boston, Mass., on Sept. n, 1920, on ac- count, the following items. Terms: Net 30 days, 2% 15 days, 5% 5 da ys- 8 pieces of Corduroy: 26, 25, 28, 29, 30, 26, 27, 29 yds @ $1.20 4 pieces of Cashmere: 5> 53> 5 J > 5 2 Y ds @ 2 1 - 16 2 /3 Write the invoice. Make out the check on the First National Bank if payment is made on September 5, 1920. Sept. i, 1920 John Harrison commenced the Flour and Grain busi- ness at 2160 Broadway, investing $3500. " 2, Paid rent of store $75, and $25 for stationery and stamps. 3, Bought merchandise for cash $550 (50 bbls Flour). " 4, Bought merchandise on account from Frank Gray $25 (30 bushels Wheat). " 5, Bought merchandise for cash from H. Hogan $27 (25 bushels of oats). " 6, Mr. Harrison drew $30 from business for his own private use. " 8, Sold merchandise for cash $420 (25 bbls Flour). " 9, Sold merchandise on account to Henry Davis $32 (15 bushels of what). " 10, Paid salaries $150. " n, Henry Davis paid us $15 to apply on account. " 12, We paid Frank Gray $20 to apply on account. Merchandise Inventory $475* (a) Enter the above transactions under the proper accounts. (b) Prepare a trial balance of totals. (c) Close the cash and merchandise accounts. 1. Use a separate account for Mdse Purchases. 2. Use a separate account for Mdse Sales. 3. Use a separate account for Mdse Inventory. STORY OF THE ADDING MACHINE 277 Edward M. Brown. Enter these transactions of Edward M. Brown in your General Ledger in the proper accounts: Made investment 75000. Nov. i Bought of A. Dean for cash 500 bu. wheat at 1.00. Nov. 2 Sold F. Lay for cash 100 bu. wheat at $1.15. Nov. 3 Bought of H. Barr for cash 50 bu. beans at $3.00. Nov. 4 Sold Bell Bros, for cash 30 bu. beans at 5.50. Nov. 5 Bought of H. Leary for cash office supplies for $15.00. Nov. 6 Bought of Thos. Daly for cash 200 bu. millet at 1.00. Nov. 7 Sold S. Allen for cash 100 bu. millet at 1.00. Nov. 9 Paid John Ray cash for repair work $6.00. Nov. 10 Bought a typewriter for cash $75.00. Nov. ii Bought a desk for cash 125.00. Nov. 12 Sold J. Morse for cash 400 bu. beans at 3.00. Merchandise Inventory $500. Expense Inventory $200. H. Harrison began the carpet business at 410 Main Street, Buffalo, N. Y., investing cash 8500. May i Bought of J. Olain for cash 60 yds velvet carpet at 1.25. May i Sold A. Dale for cash 25 yds of carpet at 1.75. May 2 Paid N. Milton cash for rent of store 75.00. May 5 Bought of W. Jackson for cash 40 yds Brussels carpet at 1.25. May 5 Sold W. Welton for cash 100 yds Brussels carpet at 7.50. May 6 Bought of J. Lee on account 20 rugs at 5.75 each. May 7 Sold J. Drew on account 10 rugs at 6.75 each. May 8 Sold L. Hicks for cash 5 rugs at 6.75 each. May 9 Bought of D. Pearson for cash 100 yds ingrain carpet at 8.50 a yd. May 10 Sold A. Dervy for cash 50 yds ingrain carpet at 1.25. May ii Received of J. Drew cash to apply on account 25.00. May 12 Bought of A. S. Servance for cash, 0.45 a yard, 200 yds of matting. May 14 Sold H. Price for cash 100 yds matting at 0.60 a yd. May 15 Sold Albert Owen on account 40 yds matting at 0.63 a yd. May 17 Received of Albert Owen cash in full of account. Expense Inventory, $5.00, Merchandise Inventory, $125,00. 2 7 8 OFFICE PRACTICE After you enter the accounts find the Total Cash Receipts and the Total Cash Payments: Balance Cash Account. Take a Trial Balance: Make a Profit and Loss Statement and a Balance Sheet. After you enter the Merchandise Purchases and Merchan- dise Sales, find the Total Purchases and the Total Sales. Use separate accounts for each. Edward M. Hogan began the grain business at 60 West Street, Hartford, Conn. Enter these transactions in your General Ledger in the proper accounts: Made Investment #95000. Nov. i Bought of A. Dean for cash 500 bu. wheat at $i. Nov. 2 Sold F. Lay for cash ioo bu. wheat at $1.15. Nov. 3 Bought of H. Barr for cash 50 bu. beans at #3.00. Nov. 4 Sold Bell Bros, for cash 30 bu. beans at $3.50. Nov. 5 Bought for cash, office supplies for $25.00. Nov. 6 Bought of Thos. Daly for cash 200 bu. millet at $1.00. Nov. 7 Sold S. Allen for cash ioo bu. millet at $1.00. Nov. 8 Paid for repair work $9.00. Nov. 9 Bought a typewriter for cash $75.00. Nov. 10 Bought a desk for cash $125.00 Nov. ii Sold J. Morse for cash 400 bu. beans at $3.00. Merchandise Inventory, $500.00. Expense Inventory, $200.00. H. Hodgetts began the carpet business at 410 Main Street, Buffalo, New York, investing cash $9500. May i Bought of J. Olain for cash 60 yds velvet carpet at $1.25. May 2 Sold A. Dale for cash 25 yds of carpet at $1.85 per yd. May 2 Paid for rent of store $95.00. May 5 Bought of W. Jackson for cash 40 yds Brussels carpet at $1.25. May 5 Sold W. Welton for cash ioo yds Brussels carpet at $0.75 yd. May 6 Bought of J. Lee on account 20 rugs at $5.75 each. May 7 Sold J. Drew on account 10 rugs at $9.75 each. May 8 Sold L. Hicks for cash 5 rugs at $6.75. STORY OF THE ADDING MACHINE 279 May 9 Bought of D. Pearson for cash 100 yds ingrain, carpet at $4.50 a yd. May 10 Sold A. Dervy for cash 50 yds ingrain carpet at $1.25. May ii Received of J. Drew cash to apply on account $35.50. May 12 Bought of A. S. Servance for cash at $0.45 a yd 200 yds matting. May 14 Sold H. Price for cash 100 yds matting at $0.60 yd. May 15 Sold Albert Owen on acount 40 yds matting at $0.63 a yd. May 15 Paid J. Lee check for $50.00 to apply on account. May 17 Received of Albert Owen cash in full of account. Expense Inventory, $5.00. Merchandise Inventory, $150.00. After you enter the accounts find the Total Cash Receipts and the Total Cash Payments; Balance Cash Account. Take a trial balance, make a Profit and Loss Statement and a Balance Sheet. After you enter the Merchandise Purchases and Merchandise Sales find the Total Purchases and the Total Sales. 1. Journalize the following transactions; post them to the Ledger; take a Trial Balance; close accounts; or enter the following in accounts: April i, 1921 Student commences the Wholesale Dry Goods, business, investing cash $7658. 3, Paid for stationery, cash $25. 4, Bought merchandise of H. Thomas on account, $786. 5, Sold merchandise to H. Martin on a note for $250. 6, Sold merchandise to H. Wells on a 3O-day note with interest at 6% for $133. 7, Bought merchandise of G. Lane on our note for $598. 9, Received cash $178 for merchandise sold to R. Sudnik. 10, Received cash $345 from H. Martin for the note received April 5th. On April 30 the merchandise on hand is estimated to be worth $878. 2. The note received April 7th, was discounted April I5th at the Chase National Bank. How much was received for it? How much was the Bank Discount on the note? 280 OFFICE PRACTICE 3. Write the note. 4. April 1 5th, A. B. Studwell, a commission merchant, received a consignment of 400 bu. of apples. 1 200 bu. of potatoes. from James L. Kirk, of Monticello, N. Y. He made the following sales: 250 bu. of apples @ $2.40 a bu. 150 " potatoes @ $2.50" 1200 " " apples @ .80" " A. B. Studwell paid $7.85 for freight. Other charges were as follows: Crating $4.75 Insurance $2.50 Guaranty 2% Commission 5% A. B. Studwell rendered an Account Sales. Make out the Account Sales. Record the following transactions on Ledger Paper: Jan. i F. L. Gleason began the grocery business with an investment of cash $4500. 2 He paid rent for one month $175. 3 Bought merchandise for cash $1800. 4 Sold merchandise on account to J. Kane $975. 5 Bought merchandise on account from K. Wagner $450. 5 Sold merchandise for cash to L. Conners $900. 7 J. Kane paid $450 by check to apply on account. 8 Paid K. Wagner #150 in full settlement of his account. 9 F. L. Gleason withdrew $480 from business for private use. 10 Bought merchandise on account from Harrison & Fisher 840. 11 Paid salaries $165. Merchandise Inventory, Jan. jo, $2200. STORY OF THE ADDING MACHINE 281 Enter the transaction in the accounts, make a trial balance of totals, balance the Cash account and close the Merchandise ac- counts. Oct. I R. Sudnik began business, investing cash $7500. 2 Paid one month's rent $60. 3 Bought merchandise for cash $530.25. 4 Bought stationery and supplies for office use $18.75. 5 Sold merchandise for cash $550. 6 Bought of Jackson & Co. on account $250. 8 Sold to Freeman & Sons on account merchandise $125. 8 Paid Jackson & Co. $175 to apply on account. 9 Sold merchandise to Gregory & Co. on account $322.25. 10 Bought on account merchandise from E. P. Bacon $900. 11 Received cash to apply on account from Freeman & Sons. 12 Paid Bacon $450 to apply on account. 14 Paid for clerk hire $50. 14 Paid for stamps and postals $15. 15 Sold merchandise to Henry Janes for cash $255. 20 Bought from Smith & Brown merchandise for cash $350. Merchandise Inventory, $537.50. Enter transactions in the accounts. Make a trial balance of totals. Balance the Cash account and close the Merchandise accounts. Make out a check in each case where merchandise was bough for cash. Make out a check where payment was made on account by the Proprietor. Assignment: AIM To introduce Payroll, Bank Account, Checks, Receipts and Money Order. You are bookkeeper for the Dry Goods firm of Henry Allen & Co., record the following business transactions: Henry Allen & Co. began business on November 3, 1920 at 361 Main St. your city with an investment of $1509. 282 OFFICE PRACTICE Mr. Allen has decided to open a bank account, and has selected The Second National Bank of Stamford, Conn, as the institution with which to do business. (Open the bank account.) Make out a deposit slip for the investment of $1500. Take your money or check to the bank teller and have him enter the amount of the deposit in your bank pass book. Make a record of this transaction on the stub of your check book. Make the entry in your cash book. Nov. 3. Paid N. Y. Herald for adv. in daily edition, $50. Make out the check for the same and record in cash book and on stub of check. Nov. 4. Paid for office stationery, $5 (Cash). Nov. 5. Bought of Brown & Co. the following invoice: 5 pcs. English Serge 28, 32, 30, 26, 29 at $1.35 a yd. 2 pcs. Royal Flannel 27, 36, at $.37 1/2 a yd. 4 pcs. Holly's Landsdown 30, 42, 61, 47 at $.90 a yd. Terms: 3/10, 2/5, n/6o. Trade Discount 5%, 10% & 15%. Make out a duplicate of the invoice and verify the extensions on the calculating machine. Nov. 6. Send the firm check to the owner of the building, Smith & Brown, for the rent of the store for the month of November, $75, and record the necessary data on the stub of the check book. Nov. 7. Sold Mrs. H. Jenkins: 15 yds Yorkshire Muslin at $.06 per yd. 21 yds English Serge at $1.36 per yd. She paid by giving you her check for the amount. Make out a receipt for this cash sale of merchandise. STORY OF THE ADDING MACHINE 283 (Is a receipt necessary in a case similar to this trans- action? Explain cancelled check as being used as a receipt or voucher.) Nov. 8. Paid check to Gas & Electric Co. for bill rendered, 2567 cubic feet at $.80 per M. Nov. 10. Bought of Gimbel & Co. on 60 days' Terms 3/5, 2/10 . n/6o. Trade discount 5%, 10% & 2%. 978 yds Silk at $1.54 per yd. 384 yds Poplin at $1.37 per yd. 754 yds French Storm Serge at $.45 per yd. Nov. ii. Sold Mary Bliss: 25 yds French Serge at $1.35 per yd. 16 yds Silk Poplin at $2.25 per yd. Make out a statement and receipt it, as she settled the account by giving James Bliss's check. See that the check is properly indorsed. Nov. 13. Send Smith, Brown & Co. a money order for $100 to pay for 250 yds of Fancy Prints at $.04 per yd. Nov. 14. Paid $.58 in cash for a package by Parcel Post, insured. Nov. 15. Make out the payroll for the employees of the firm. Rate per day of ten hours given; day consists of 10 hours work per day. Employees: F. Smith, Manager, $5 per day, Mio, Tio, W 9 , Tio, F9, Sio Total for week H. Scheller, Clerk, $3 per day, Mio, T 9 , Wio, T 9 , F8, Sio. R. Gorden, Clerk, $3 per day, M 9 , Tio, W 9 , Tio, F 9 , S 9 . F. Walker, Cashier, $2.50 per day, Mio, T 9 , W8, T7, Fio, S 9 . 284 OFFICE PRACTICE Student, Bookkeeper, $3 per day, Mio, Tio, Wio, T9, F9, Sio. H. Ernest, Office Boy, $1.25 per day, Mio, Tio, Wio, T9, Fio, 89. J. Lang, Janitor, $1.75 per day, Mio, Tio, Wio, Tio, F9, Sio. Make out the payroll and find the amount due each employee and the total amount of the payroll for the employees. Make out a currency memorandum. Make out a payroll check and have the Treasurer of the firm or the person who is authorized to sign all firm checks, sign it for you. Nov. 17. Send a check for $100 to the Underwood Typewriter Co. for a typewriter for the office. Make out check and record necessary data on the stub of your check book. Nov. 1 8. Paid in Cash $15 for insurance on goods in the store. Nov. 18. Pay Gimbel & Co. for merchandise purchased on Nov. 10. Deduct the cash and trade discounts al- lowed, and send check for the amount due. (Explain the difference between the net amount of check sent and the entry in your cash book). Nov. 20. Received cash for petty sales to-day, $10.25. Nov. 21. You received a statement from the Bank, also the vouchers or cancelled checks. This statement shows your total credits, total debits, and the bank balance. Reconciliate your bank balance. Check up your check book from the record on the stubs with statement received from the Bank. Ad- just the difference if necessary. STORY OF THE ADDING MACHINE 285 Similar problem: Total Deposits 10205.94 Total Checks 6009.48 True Bank Balance 4196.46 Checks Out: Nos. 35 103.63 27 66.37 45 90-04 52 283.69 543.73 Bank's Balance 4740.19 True Balance 4196.46 Note: Enter all of the above transactions in the proper accounts, all pur- chases and sales in the merchandise sales and purchases accounts and cash transactions in the cash account. Nov. 30. We find that we have on hand merchandise valued at at $254 after inventory has been taken. Calculations and Accounts I. Jan. i F. A. Jonson began business, investing cash $7800. On Dec. 31 his books show the following results: Cash Balance $8425.50. A. B. Hendricks owes him $2400; he owes F. T. Green $1425; he also owes the Commercial Bank of N. Y. $3400 on a 6o-day note; his furniture is valued at $450; there are stationery and office supplies on hand worth $125, and real estate worth $3000. Make a balance sheet showing F. A. Jonson's present worth and net gain for the year 1921. 286 OFFICE PRACTICE 2. Open accounts on ledger paper and enter the following trans- actions. July I You, as proprietor, invest cash $5000. 2 Buy merchandise from F. C. Arnold, terms 30 days $2500. 2 Buy merchandise for cash $1300. 3 Paid rent $75. 4 Bought delivery wagon $1200. 6 Paid office salaries $40. 8 Sold merchandise for cash $460. 9 Sold merchandise to J. Brown $1800. 10 Proprietor withdrew for private use cash $50. Inventory. Merchandise $1900 Delivery wagon. . .$1000 Close the accounts. Show the profit and loss. 3. What is the effect of the following transactions. 1. Paid James Rice $100 on account. 2. Paid rent in advance $150. 3. Proprietor presented $25 worth of merchandise from his stock to his daughter. 4. Bought merchandise on account from A. Hern, $200. 5. Received from the Brown Co. a check for $50 for having the best window display on their goods. 4. The bank's statement of Nov. 30 shows that during the month I have deposited $8427.85 and that my cancelled checks amount to $4787.92. My check book shows a balance of $3139.93. Checks outstading are as follows: #68, $50; #72, $150; #75, $300. Make a statement reconciling bank balance and check- book balance. STORY OF THE ADDING MACHINE 287 Telephone Directory New York City Look up the following in the General Telephone Directory, and write the name of the Firm or Person, address, telephone exchange, and telephone number: Astor Safe Deposit 602 West 141 Street Underwood Typewriter Co. O'Mara & Ormsbee Hotel Marseilles Mount Sinai Hospital Bellevue Hospital Mayor's Office, City Hall Morgan O'Brien, Law Office N. Y. Eye and Ear Infirmary Julia Richman High School at 421 East 88th Street Send an Emergency call to the Lenox Exchange for an ambulance. National Biscuit Col, Sales Agency. Lost Article Department, Grand Central Terminal. Washington Heights Branch, N. Y. Public Library. Burroughs Calculating Machine Co., Repair Department. Roneo Company, Department of Repairs. Elliott-Fisher Co., Sales Department. A. B. Dick Mimeograph Co., Repair Department. Library Bureau, Sales Department. Dalton Adding Machine Co., Repair Department. Interborough Rapid Transit Co., General Offices. Irving National Bank. J. D. Hamill, M.D. Andrew Davey, Inc. Century Magazine. Bankers' Trust Company. Public School 1 86 at West 145 th Street. Western Union Telegraph Co., Messenger Department. A. B. Altman, Art Department. Consult the Classified Telephone Directory and give the name, address, and the telephone number of ten (10) lawyers, 288 OFFICE PRACTICE accountants, druggists, doctors, dry goods concerns, hospitals, butchers, contractors, plumbers, and real estate concerns. Give the names and addresses with their telephone numbers of fifteen (15) business men whose telephone is listed in the following telephone exchanges in New York City Rector Broad Madison Square Lenox Schuyler Chelsea Riverside Audubon Grammercy Murray Hill Plan your telephone conversation in each case. Make out a memorandum of each telephone call Outgoing and Incoming calls. Make out a memorandum of the following telephone num- bers, indicating Name of Firm, Address, Telephone Exchange, and Telephone Number: 1. Astor Safe Deposit, 602 West 14151 Street. 2. Underwood Typewriter Co., Repair Department. 3. Julia Richman High School, East yyth Street, Annex. 4. Send an Emergency call to the Broad Exchange for an ambulance. 5. O'Mara & Ormsbee, 320 Fifth Avenue. 6. National Biscuit Co., General Office Sales Agency. 7. Information Bureau, New York Central R. R. 8. Lost Article Department, Grand Central Terminal. 9. Hotel Marseilles, Pennsylvania, Commodore, and Astor. 10. Mount Sinai Hospital. 11. Bellevue Hospital. 12. Mayor's Office, City Hall. 13. United Cigar Store, #16, at 352 6th Avenue. 14. Morgan J. O'Brien, Law Office. 15. N. Y. Eye and Ear Infirmary. 1 6. Washington Heights Branch Public Library. Look up Telephone Exchange and Number of 15 business men whose telephone is listed in Rector, Broad, and Madison Square. After listing the telephone number, plan your con- versation before telephoning. STORY OF THE ADDING MACHINE 289 Suburban Telephone Directory Section 2: Long Island 2: New Jersey 3: Rockland County 4: Westchester County 5: Connecticut (Darian, New Canaan and Stamford) Make out a memorandum of the following, placing telephone numbers to the right of the names and addresses: Charles Frank Cartledge, Locust Valley, L. I. Fred Cort. Cedarhurst, L. I. R. V. C. Theatre, 241 Merrick Road, L. L H. M. Young, Woodhaven, L. I. Acker, Merrall & Condit Co., Montclair Store, 599 Bloomfield Avenue. The Bellevue Hotel, Bay Mead, N. J. Burroughs Adding Machine Co., 126 Market St., N. J. The Coast Service System Emply, Kemth Bldg, N. J. National Bank, 390 George Street, New Rochelle. Sperry & Hutchinson, n Division Street, N. J. Stamford Gas & Electric Co., n Bank Street, Stamford. Adams Express Co., 17 Union Avenue, New Rochelle (Westchester Division). American Express Co., 26 Warburton Avenue, Yonkers. King School Inc., Conn. Division, Stamford. Red Cross Headquarters, Conn. Division, Stamford. Borden's Condensed Milk Co., Brooklyn, N. Y. James Butler Inc., Cedarhurst, L. I. Huntington Public School, Huntington, L. I. Long Island Railroad, Belleport, L. I. Archibald MacFarland, Freeport, L. L Post Office, Glen Cove, L. I. South Side High School, Rockville Centre, L. I. 2 9 o OFFICE PRACTICE Adams Express Co., Belmar, N. J. Atlantic & Pacific Tea Co., Newark, N. J. Delaware, Lackawanna & Western Coal Co., Summit, N. J. Irving DeWitt, Red Bank, N. J. Stamford High School, Stamford, Conn. Clerk's Office, Babylon, L. I. Bullinger's Post Office, Express, and Freight Guide This book contains the names of every post office, railroad station, boat landing and United States ports, with the railroad or water route on which every place or the nearest communi- cating point is located, and the shipping directions by express or freight line from New York City. For any place not located directly on a railroad it gives the nearest railroad station. It designates which post offices are money order offices, and the location of county seats. On pages 57 to 902 are the names of all the post offices and all the railroad stations in the United States. All names printed in roman type are post offices. R. F. D. means rural free delivery. Mail matter for those places should bear the name of the post office from which the rural delivery is made. The names to which a star is prefixed are money order post offices. The names in capital letters are state capitals. The names followed by a small c. h. are county seats. Assignment: State the route or nearest station on which the following place, county and state is located. Also state the express com- pany which delivers packages in New York. State whether the place is a money-order post office or a R. F. D. station. Abbott, Hill County, Texas. Arrington, Nelson, Va. Aron Park, De Soto, Fla. Belmont, Wabash, 111. Buffalo, Erie, New York. Deep River, Middlesex, Conn. Haynesville, Richmond, Va. Knoxville, Knox, Tenn. STORY OF THE ADDING MACHINE 291 McDonald, Mima Walker, Ala. Milwaukee, Wis. Zona, Benton, Mo. Port Washington, Nassau, N. Y. Providence, R. I. Riverside, Fairfield, Conn. St. James, Suffolk, N. Y. South Norwalk, Fairfield, Conn. Stamford, Fairfield, Conn. Trenton, Mercer, N. J. Utica, La Salle, 111. Valley Forge, Chester, Pa. Warsaw, Benton, Mo. West El Paso, Dona, New Mexico. Yates City, Knox, 111. New York City Directory In Term I your course in CIVICS included a consideration of our city government: Obtain the following information in regard to our city government: 1. Name of the a. Mayor. b. Borough presidents of Manhattan, Bronx, Brook- lyn, Queens. c. Comptroller. 2. Department of Correction : a. Where located. b. Name of the commissioner. c. What institutions are under his charge. 3. Department of Education: a. Where located. b. Name of the city superintendent. c. How many colleges, high schools, and elementary schools in Manhattan are under its jurisdiction? 4. Health Department: a. Where located. b. Name of the president. 5. Where do you go to pay your tax bills? 6. Bureau of Chief of Fire Department: a. Where located b. Name of the chief. 292 OFFICE PRACTICE 7. Bureau of Chief of Police Department: a. Name of commissioner. 8. Names of the members of the Board of Estimate and Apportionment. 9. Where are the following? a. Custom House. b. Federal Reserve Bank. c. City Hall. d. Lenox Library. e. New York Clearing House. 10. Indicate the addresses of the following: Thomas A. Rush William L. Ettinger John T. Nicholson Elizabeth Donovan Margaret Cummings Lillian Wald James J. O'Connell Dr. Stephen Wise Henry Miller Felix Adler Elizabeth Tierney Nicholas Murray Butler James McCabe " Alfred W. McCann May Sinnott Alfred E. Smith Margaret O'Connell John F. Hylan Dr. Frank Crane Dr. John F. Tildsley Grace Strachan Forsythe Who's Who in America Our Assistant Manager wishes to obtain the following facts. Look up same in Who's Who. Write a short paragraph. i. Theodore Roosevelt. Where was he born? What are the titles of some of the books he wrote? When was he commissioner of police in New York City? When did he become governor of New York Stater In what year did he become President of the United States? What do you know about the personality and characteristics of the ex-president? In what year did he die and where is he buried? (Edition 1919.) STORY OF THE ADDING MACHINE 293 2. Woodrow Wilson. In what year was he elected President of the United States? Name the well-known university of which he was president. State any interesting facts which took place during his administration as president of our country. 3. Look up your favorite American author. How old is he or she? Where does he or she live? Tell three interesting facts about his or her life. Name the titles of some of the books written by your favorite author. 4. Look up and write a paragraph of at least four important facts about each of the following: John D. Rockefeller Rodman L. Wanamaker Walter Albert Jessup Nathan Straus Thomas W. Churchill Homer S. Cummings William L. Ettinger William M. Edwards Booth Tarkington Morgan J. O'Brien William S. Calder Alfred E. Smith Nicholas Murray Butler Henry Taft William H. Taft Dr. Lyman Abbott Lawrence Abbott Franklin D. Roosevelt Warren G. Harding Calvin Coolidge Blue Book I. We want to invite people of prominence to visit an exhibi- tion of merchandise that will be opened by us in a few weeks. Using the Blue Book, make a memorandum of the names of prominent people that you will find in the list compiled by streets. 294 OFFICE PRACTICE Select 10 names of people living on: Fifth Avenue above No. 503 Madison Avenue above No. 25 Riverside Drive above 10 West 72nd Street Irving Place Park Avenue Hamilton Terrace 8 ist Street i East 8ist (East of 5th Ave.) 2. Write the name and the address of the following: Le Roy, Stuyvesant Whitehouse, Worthington Guggenheim, William Gary, Elbert H. Wormser, Louis Sherman, William Watts Reid, Daniel Gray Parson, Harry E. (Mrs.) Astor, Vincent (Mrs.) Gould, George (Mrs.) McGivney, Mabel (Mrs.) Vanderlip, Mr. & Mrs. Frank A. Vanderbilt, Grace (Miss) Carnegie, Andrew (Mrs.) 3. Look through the advertisements and write a paragraph stating style of letters used (Upper or Lower case), and whether in your judgment the advertisement would make a good poster, and why. Use knowledge taught you by your drawing teacher. 4. Give the names and addresses, and class of business of twenty different firms advertising in the Blue Book. 5. Consult the theater diagrams at the back of the book and select seats for parties of six in each of the following theatres: Astor Belasco Booth Cort Criterion Empire Globe Geo. M. Cohan STORY OF THE ADDING MACHINE 295 Select and decide upon the date, performance (matinee or evening), and telephone the box office to reserve tickets, stat- ing your check will be sent by mail. Roget's Thesaurus Definition: In a Dictionary, the word is given, followed by the idea it is intended to convey. In the Thesaurus, the idea is given, followed by the word it is intended to convey. How to use it: Note index at back of book. Alongside each word will be found a number. These numbers refer to the section or paragraph (not page) in which these words will be found. For exam-pie: The number 664 is to be found alongside the word "safety." In section 664 will be found words expressing the ideas. In section 665 opposite will be found words expressing the opposite ideas of safety. After each word listed below, write five words expressing the same idea. safety difficulty equality remainder beginning truth disorder agreement balcony change assemblage resistance pursuit success sequence beauty After each word listed above, write five words expressing the opposite idea.* After each word indicate the part of speech to which it belongs. The opening pages of these books contain: a. Editor's preface. b. Introduction. 296 OFFICE PRACTICE c. Plan of classification. (Read this carefully.) d. Note class 2 (Nos. 180 to 315.) e. Define word "space." (Use regular dictionary for this purpose.) f. Select from the Thesaurus 20 words relating to space, as follows: 5 words relating to existence in space. 5 ' linear measure. S " " general form. 5 ' motion in general. Assignment: 1. Word: ship {noun). Business words: Transport merchant ship packet 'liner 'lighter. Look in the Dictionary for the exact meaning of each of these words. Write one sentence containing each, showing the definitior of each word. Find differences between schooner, cutter, barge, tug. Write uses of ferryboat, canal boat, gig, jolly boat, raft. What is a coracle, a gondola, a canoe, a launch, a yacht? Have you had any of the above words in your reading in the English Department classes? Where? Which lines in your reading would require a knowledge of the above words ? 2. Find seven words that mean a ivriter. Give definitions (using the dictionary if necessary) of each, bringing out clearly the differences in meaning. For in- stance, tell just how a stenographer differs from a typist, both being writers. 3. Suppose that you work for a corporation. You wish to find out about the corporation. Look up the word. What other words mean the same as a corporation? Find other STORY OF THE ADDING MACHINE 297 words for firms. What is a syndicate? An alliance? A trade union? Find other words for club. The World Almanac Postal Information: 1. What are the rates of postage on letters to Canada, Eng- land, Dutch West Indies, and Newfoundland? 2. How do the rates to other countries differ? 3. What are the rates on printed matter and newspapers to Canada, Panama, and Cuba? 4. What are the rates on postal cards to all countries? 5. What are the rates on samples of merchandise? 6. What are the International Parcel Post rates? 7. State the postal regulations in reference to postal savings. 8. State the postal regulations in reference to sending sealed packages through the mails. 9. State the postal regulations in reference to the delivery of pension checks, prisoners' mail, husband's or wife's and minor's mail. 10. What should a person do if he received a letter not ad- dressed to him? Vertical File Card Index Filing 1. Arrange the alphabetical guide cards. 2. Select about 25 cards. 1. Arrange them alphabetically. 2. File all A's back of guide card A, B's back of guide card B. 3. Take all A's and arrange them alphabetically. 4. Place back of guide card A. 5. Do the same with each letter of alphabetical list, using the cards in the small drawer. 298 OFFICE PRACTICE 3. Arrange the guide cards for Numeric (numbers), Subject (kind of business), and Geographic (city and state Filing). File a card Alphabetically. According to the subject. " " " Geographically. " " " Numerically. 4. Arrange all the cards behind each guide card Alphabetically. On your Memorandum write: Name of Firm Address of Firm Business File Number of Firm Incoming Mail 1. Arrange all the mail received this A. M. Cut each envelope as directed in the text. 2. Adjust the date stamp and stamp all letters in the upper right-hand corner with the correct date. 3. If any letter is to be called to the attention of any special member of our firm, underline his name with a red pencil. 4. Underline the file number, name, or subject or address in red pencil for filing purposes. 5. If letters are to be filed alphabetically underline the name only. 6. Distribute letters to the various departments as explained in the text. 7. When letters are returned from the various departments to the filing department file them in the vertical filing cabinet. 8. On your memorandum write the name, address, and the date of each letter. As a check on your ability to file letters also write the letter of the guide card behind which you are to file each letter. STORY OF THE ADDING MACHINE 299 Outgoing Mail 1. Collect the mail which is ready to be sent to the post office. 2. Fold each letter, and on the last fold write the name, city, and the state (the address) of the firm to whom the letter .is to be sent. 3. Place a stamp or the proper amount of postage in the upper right-hand corner of each letter or package. 4. Write the amount of postage on the stamp. 5. Weigh the letter or package to determine the amount of postage due. 6. Before folding the letter, examine each letter or package for signature and any enclosure. 7. Place all letters when ready for the post office in the Out- going Mail basket. 8. On your memorandum write the name, address, and the date of all letters sent out from our outgoing mail depart- ment. 9. Send the carbon copies to the filing department. An Act for Codifying the Laws relating to the Sale of Goods (20 February, 1894) Formation of the Contract Contract of Sale i. (i) A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price. There may be a contract of sale between one part owner and another. (2) A contract of sale may be absolute or conditional. (3) Where, under a contract of sale, the property in the goods is to be transferred from the seller to the buyer the contract is called a sale; but where the transfer of the property in the goods is to take place at a future time, or 300 OFFICE PRACTICE is subject to some condition thereafter to be fulfilled, the contract is called an agreement to sell. (4) An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred. 2. Capacity to buy and sell is regulated by the general law concerning capacity to contract, and to transfer and acquire property; provided that where necessaries are sold and delivered to infant, or minor, or to a person who by reason of mental incapacity is incompetent to contract, he must pay a reasonable price therefor. Necessaries in this sec- tion means goods suitable to the condition in life of such infant or other person, and to his actual requirements at the time of the sale and delivery. Formalities of the Contract 3. Subject to the provisions of this act and of any statute in that behalf, a contract of sale may be made in writing (either with or without seal) or by word of mouth, or partly in writing and partly by word of mouth, or may be implied from the conduct of the parties. 4. (i) A contract for the sale of any goods of the value of ten pounds (about ($50) or upwards shall not be enforce- able by action unless the buyer shall accept part of the goods so sold and actually receive the same, or give some- thing in earnest to bind the contract or in part payment or unless some note or memorandum in writing of the contract be made and signed by the party to be charged or his agent in that behalf. (2) The provision of this section apply to every such con- tract notwithstanding that the goods may be intended to be delivered at some future time, or may not at the time of such contract be actually made, procured, or provided, or fit or ready for delivery, or some act requisite for the STORY OF THE ADDING MACHINE 301 making or completing thereof, or rendering the same fit for delivery. (3) There is an acceptance of goods within the meaning of this section when the buyer does any act in relation to the goods which recognizes a pre-existing contract of the sale, whether there be an acceptance in performance of the contract or not. Subject Matter of the Contract 5. (i) The goods which form the subject of a contract of sale may be either existing goods, owned or possessed by the seller, or goods to be manufactured or acquired b> the seller after the making of the contract of sale, in this act called "future goods." (2) There may be a contract for the sale of goods, the acquisition of which by the seller depends upon a contin- gency which may or may not happen. (3) Where by a contract of sale the seller purports to effect a present sale of future goods, the contract operates as an agreement to sell the goods. 6. Where there is a contract for the sale of specific goods and the goods without the knowledge of the seller have perished at the time when the contract is made, the con- tract is void. 7. Where there is an agreement to sell specific goods, and subsequently the goods, without any fault on the part of the seller or buyer, perish before the risk passes to the buyer, the agreement is thereby voided. The Price 8. (i) The price in a contract of sale may be fixed by the contract or may be left to be fixed in manner thereby agreed, or may be determined by the course of dealing between the parties. (2) Where the price is not determined in accordance with 302 OFFICE PRACTICE the foregoing provisions the buyer must pay a reasonable price, What is a reasonable price is a question of fact dependent on the circumstances of each particular case. 9. (i) Where there is an agreement to sell goods on the terms that the price is to be fixed by the valuation of a third party and such third party cannot or does not make such valuation, the agreement is voided; provided that if the goods or any part thereof have been delivered to and appropriated by the buyer he must pay a reasonable price therefor. (2) Where such third party is prevented from making the valuation by the fault of the seller or buyer, the party not in fault may maintain an action for damages against the party in fault. Conditions and Warranties 10. (i) Unless a different intention appears from the terms of the contract stipulations as to time of payment are not deemed to be of the essence of a contract of sale. Whether any other stipulation as to time is of the essence of the contract or not depends on the terms of the contract. (2) In a contract of sale "month" means prima facie calendar month. 12. In a contract of sale, unless the circumstance of the con- tract are such as to show a different intention there is: (i) An implied condition on the part of the seller, that in the case of a sale he has a right to sell the goods, and that in the case of an agreement to sell he will have a right to sell the goods at the time when the property is to pass. (3) An implied warranty that the goods shall be free from any charge or encumbrance in favor of any third party, not declared or known to the buyer before or at the time when the contract is made. 13. When there is a contract for the sale of goods by descrip- STORY OF THE ADDING MACHINE 303 tion, there is an implied condition that the goods shall correspond with the description; and if the sale is by sample as well as by description, it is not sufficient that the bulk of the goods corresponds with the sample if the goods do not also correspond with the description. 14. Implied conditions as to quality or fitness. (1) Where the buyer, expressly or by implication, makes known to the seller the particular purpose for which the goods are required, so as to show that the buyer relies on the seller's skill or judgment and the goods are of a de- scription which it is in the course of the seller's business to supply (whether he be the manufacturer or not) there is an implied condition that the goods shall be reasonably fit for such purpose, provided that in the case of a contract for the sale of a specified article under its patent or other trade name, there is no impled condition as to its fitness for any particular purpose: (2) Where goods are bought by description from a seller who deals in goods of that description (whether he be the manufacturer or not) there is an implied condition that the goods shall be of merchantable quality; provided that if the buyer has examined the goods, there shall be no im- plied condition as regards defects which such examination ought to have revealed. (3) An implied warranty or condition as to quality or fit- ness for a particular purpose may be annexed by the usage of trade. (4) An expressed warranty or condition does not negative a warranty or condition implied by this Act unless incon- sistent therewith. Sale by Sample 15. (2) In the case of a contract for sale by sample: (a) There is an implied condition that the bulk shall cor- respond with the sample in quality: 304 OFFICE PRACTICE (b) There is an implied condition that the buyer shall have a reasonable opportunity of comparing the bulk with the sample: (c) There is an implied condition that the goods, shall be free from any defect, rendering them unmerchantable, which would not be apparent on reasonable examination of the sample. Transfer of Title 22. (i) Where goods are sold in the market according to the usage of the market, the buyer acquires a good title to the goods, provided he buys them in good faith and without notice of any defect or want of title on the part of the seller. 24. (i) Where goods have been stolen and the offender is pros- ecuted to conviction, the property in the goods so stolen revests in the person who was the owner of the goods, or his personal representative, notwithstanding any inter- mediate dealing with them, whether by sale in the market or otherwise. Performance of the Contract of Sale 27. It is the duty of the seller to deliver the goods, and of the buyer to accept and pay for them, in accordance with the terms of the contract of the sale. 28. Unless otherwise agreed, delivery of the goods and pay- ment of the price are concurrent conditions, that is to say, the seller must be ready and willing to give possession of the goods to the buyer in exchange for the price, and the buyer must be ready and willing to pay the price in exchange for the possession of the goods. 35. The buyer is deemed to have accepted the goods when he intimates to the seller that he has accepted them, or when the goods have been delivered to him, and he does any STORY OF THE ADDING MACHINE 305 act in relation to them which is inconsistent with the ownership of the seller, or when after the lapse of a reason- able time, he retains the goods without intimating to the seller that he has rejected them. Rights of Unpaid Seller Against the Goods 39. (i) (a) A lien on the goods or right to retain them for the price while he is in possession of them. (b) In case of the insolvency of the buyer, a right of stop- ping the goods in transitu after he has parted with the possession of them. 43. (i) The unpaid seller of goods loses his lien or right of retention thereon (a) When he delivers the goods to a carrier or other bailee or custodier for the purpose of transmission to the buyer without reserving the right of disposal of the goods: (b) When the buyer or his agent lawfully obtains pos- session of the goods. Stoppage in Transitu 44. Subject to the provisions of this Act, when the buyer of goods becomes insolvent, the unpaid seller who had parted with the possession of the goods has the right of stopping them in transitu, that is to say, he may resume posesssion of the goods as long as they are in course of transit, and may retain them until payment or tender of the price. 45. (i) Goods are deemed to be in course of transit from the time when they are delivered to a carrier by land or water or other bailee or custodier for the purpose of transmission to the buyer, until the buyer, or his agent in that behalf, takes delivery of them from such carrier or other bailee or custodier. (2) If a buyer or his agent in that behalf obtains delivery of the goods before their arrival at the appointed destina- tion the transit is at an end. 306 OFFICE PRACTICE 58. In case of a sale by Auction. (2) A sale by auction is complete when the auctioneer announces its completion by the fall of the hammer, or in other customary manner. Until such announcement is made any bidder may retract his bid. 62. "Buyer" means a person who buys or agrees to buy goods. "Delivery" means voluntary transfer of possessions from one person to another. "Quality of Goods" includes their state or condition. "Sale" includes a bargain and sale as well as a sale and delivery. "Seller" means a person who sells or agrees to sell goods. "Specific Goods" means goods identified and agreed upon at the time a contract of sale is made. "Warranty" means an agreement with reference to goods which are the subject of a contract of sale, the breach of which gives rise to a claim for damages, but not to a right to reject the goods and treat the contract as repudiated. (2) A thing is deemed to be done "in good faith" within the meaning of this Act when it is in fact done honestly, whether it be done negligently or not. (3) A persons is deemed to be insolvent within the meaning of this Act who either has ceased to pay his debts in the ordinary course of business, or cannot pay his debts as they become due, whether he has committed an act of bank- ruptcy or not, and whether he become a notour 1 bankrupt or not. (4) Goods are in a "deliverable state" within the mean- ing of this Act when they are in such a state that the buyer would under the contract be bound to take delivery of them. 64. This Act may be cited as the Sale of Goods Act, 1893. This statute has been re-enacted with modifications in al- (Scot) Well-known. STORY OF THE ADDING MACHINE 307 most every state of the United States. Its provisions and the language in which they are clothed, may vary, but in substance, it is almost identical, in all of them in respect of sales and agree- ments to sell. The price (ten pounds) about $50, changes in different states, ranging from $30 to $300, except in Iowa and Florida, where the amount is unlimited; $30 is the amount in Maine, Missouri, New Jersey, and Arkansas, and $300 in Utah and Montana. In most of the other states of the United States the limit is $50 (see Appendix Gano's Essentials of Business Law). COMMERCIAL ABBREVIATIONS AND GENERAL BUSINESS TERMS @ at or to Ai first class acct. or a/c account acct. sales account of sales adv. or ad. advertisement agt. agent A. M. before noon Master of Arts amt. amount b/b bill book bbl. barrel bdl. bundle b/1 bill of lading b/s bill of sale B. O. Buyer's option bu. bushel bxs. boxes ck. check c/o care of Co. company or county c. i. f. cost, insurance, and freight c. o. d. collect on delivery com. commission Cr. credit or creditor c. w. o. cash with order cwt. hundredweight dep. deposit disc. discount do. ditto doz. dozen $ dollar (s) Dr. debit, debtor, or Doctor E. E. errors excepted E. & O. E. errors and omissions ex- cepted e. g. for example etc. and so forth ex. example exch. exchange f. o. b. (point named, as N. Y. C.) free on board cars or lighters at the point named f. o. b. (point on seaboard named) all freight charges paid from forwarding point to port on seaboard f. o. b cars. (port named L. C. L.) less than a carload lot f. o. b. cars (within lighterage limits) lighterage free f. o. b. on vessel (port named) all ex- penses up to and in- cluding delivery of the goods upon the over- seas vessel or steamer at a named port 308 OFFICE PRACTICE f. o. b. vessel (port named) delivery of goods free of charges alongside overseas ves- sel or steamer and within reach of its loading tackle c. & f. (named foreign port) as Lon- don, England, seller willing to pay transportation charges or the cost and freight to a foreign point of delivery fol. folio ford. forward frt. freight ft. foot (feet) gal. gallon gro. gross hhd. hogshead I. O. U. I owe you in. or " inches i.e. that is ins. insurance inst. instant; the present montn int. interest inv. invoice invy. inventory Ib. pound L & G loss and gain Messrs. Gentlemen mdse. merchandise mem. memorandum mo. month $ number (if written before a figure) point (if written after a figure) N. B. take notice O. K. correct oz. ounce c /c P er cent pcs. pieces pd. paid per by pkg package p. page P. O. post office P. S. postscript rec'd received rect. receipt R. F. D. rural free delivery R. R. railroad shipt.- shipment S. S. steamship Str. steamer ult. ultimo, or last month U. S. M. United States Mail via by way of viz to wit; namely vs. against w/b waybill yd. yard yr. year THE END THIS BOOK IS DUE ON THE LAST DATE STAMPED BELOW AN INITIAL PINE OP 25 CENTS WILL BE ASSESSED FOR FAILURE TO RETURN THIS BOOK ON THE DATE DUE. THE PENALTY WILL INCREASE TO SO CENTS ON THE FOURTH DAY AND TO $1.OO ON THE SEVENTH DAY OVERDUE. . MAY 2 1938 JIJ N 22 1930 MDIT LIBRARY USt. J PR 20 '90 NKU 1 LD 21-95m-7,'37 YB I86JO [VERSITY OF CALIFORNIA LIBRARY I