Eratierio a) spayed ag ‘VUPPRRGE PEE a ‘eu MAARUNRECTE GONG SINE saat Sia is ae Oy PO aR ya) I TED Tere 2 FERNY CEE RTE FUEN EN i a ta aennss ae US i REED PERS SN PEL une auny ny) NTSrSRLTEU ‘ uty a eviay uD beaey 3) UEPEC DDE RE PeEDER eT ee rep been?! Seesyeprartsprvesies Shey eae eu ae) 3 ; iat}, 1 A 1. } 18 3 $4! xi Shepoa tenn! eUeESy SEE tt ? eyeey i eURDEAEDEPREDNEFUADYSD OREN ED’ cree y Rover beet aenary svesiierest Ride k - iad h rs * 2) +y eevee COUNT PEPER AERP DORE ONES j i DPPMeeeescapeer se MSeePeNaAE IT ite z r F YY 2) ny varesaye ray ehaee ZESSC PER REREH ESE E DE! Hy eneweebeny ive NPR SY Y pan IAA UNIVERSITY OF ILLINOIS LIBRARY AT URBANA-CHAMPAIGN STACKS _ NEW YORK UNIVERSITY School of Commerce, Accounts and Finance Accounting Series ADVANCED PROBLEMS he aa / / Collected and Classified Dy donn T. Madden, A. M., B. C. S. Assistant Dean of the School of Commerce, Accounts and Finance, New York University. Certified Public Accountant, New York. and Arthur H. Rosenkampff, B. C. &. Professor of Accounting and Head of the Department of Accounting Instruction in the School of Commerce, Acaqccunts and Finance, New York University. Certified Public Accountant, New York. EDVARDS BROS. Publishers Ann Arbor, Mich Lo ae F is . : a ey oO Oat pe jp eTSSo% .7 adap oe n+ 3 a8 SOR RRO. Fo Loodae. off 35 fed vactelessh thei . “USLev sy int? ese 79K. .90kHIT Ene atnvaop sh. <= ais »#4£0¥ ; wok a “3 20.8 43 {timesindede:. oH rity eS O22 Yo bee. bre atitiverns to ¢5 Cseatery << y 262 at mei Forrent Ss Tisireracos te caomPtegeg eOMsall Say Stations s .22TamD to fsodn2 a A | te fersviot So wat } - ea3OL TSX Im SaIroook oflays Soitisirsy = — a : ene = 7 — ae Px “ SPORE cote | Ns ) Se &t3snelidg | + SOEN .TOSTA pez’ a a | 2 A ‘on mete oSok Palos bertiezso ; x ep £ ; L577. 046 MAb d a. PREFACE This volume contains part of the material used in the course in Advanced Problems in New York University. The problems have been selected with special reference to the previous training in accounting which the students in our course have received. It follows therefore that a great deal of the material uséd will not be suitable for those who have had other preliminary training or who do not have in view the special aims of this group or students. Particular consideration has been given in the selection of the material to the needs of those who desire an intensive review of the subject matter. John T. Madden Arthur H. Rosenkampff 164 at Saou felasisnn sat Io trey -engetaoo eg hersedal x10% woill at anoidor? be taaciae ai ibs. ot soastotot Lsiseqe diy betoeken assed s mt etusbyae@ sd? dotdy aclemyosor af gubetow £ Sad? stoteisat ‘groffot #1 ebevicosr ovad 081 ' Som {ftw beow Loiuotam sd te fon ab od? 16 guiaterd ysentmtiong sco Bad ovat Ones Tee wudesbyts le quows afiy Te sais aioeza ont wetw mt to pcitooliss eff ai msvig aged cad mobyeteblenco tea yytagedal af sticob off oecd? to abso eat ot Lniue totéeu tootdre: oat wee e | ; = | = * TABLE OF CONTENTS Single Entry Bookkeeping Problems 1 - & inclusive Partnership Accounting x 6 -46 . Joint Ventures end Consignments " 47 “63 : Corporation Accounting n 54-108 : Financial Statements Balance Sheet and Statement of Incone and Profit & Loss " 109-137 " Comparative Steatexents tt 158-141 n Consolidated Statenents " 143-146 " Agencies n 147~152 ” Fiduciary Accounting " 153-166 " Brokerage Accounting " 1672171 a Insolvency Accounts Statsment of Affairs 7 n 178-184 " cvustenent of Realization & Liquidation n 18$=-1S4 " Branch Office & Foreign Exchange Accounting " 195-207 " Investment Accounting and Mathematics t = - 208215 i Cost Accounting — i 220-255 " Municipal Accounting n 264-335 " ‘Public Utilities Accounting N . $36e837 n Miscellaneous Problems including Institutional Accounting Insurance Accounting Real Estate Accounting Bank Accounting, etc. | n 258-376 ' rLeskons @ = £ eaekdoxt t Ohe Soe OD BOL-Pe vereeor fi r-dé! Oi [eGift Safelite SbLebeL $ TLelar 4 PareSvt SOLwESL TOG—seL ebaes08 GC6~-O&86 Boaaboe -_ i) { & ’ i f fat oT pe i » 71 » = of soracbuptl ‘ aoteastine pyre | GiC+ NEW YORK UNIVERSITY SCHOOL OF COMMERCE - ACCOUNTS & FINANCE ACCOUNTING SERIES - PROBLEM REVIEW SINGLE ENTRY BOOKKEEPING PROBLEM NO. 1. (Ohio C. BP. A, Examination) The books of the Butter, Egg & Cheese Company, with an authorized and outstanding capital stock issue of $25,000.00 are kept by single entry. It annually inventories all of its assets and liabilities and from such inventory prepares a financial statement. At December 31, 1913, this inventory is as follows:- ie UG @ o)y) +. sees =. oe oo 1, DAO Balance — Bank A «ee « - » .10,824.00 Ascounts Heceivable « . . +. 29,521.00 LO Shares Stock in competing company ... 1,000 .00 Plant & Equipment ....+- 64,938.00 Merchandise Inventory . .. 81,737.00 PYSPSAICAEADENSCH .- sme. «ie 5,081.00 Overdraft - Bank B re 5,903.00 Accounts Payable...» « « 19,747.00 Mortgage Payable ,. ..-+ .». 385,000.00 Notes Payable ... . + eee OO From a comparison of the financial statements at the beginning and the end of the year you find that the above-named item of Plant and Equipment is stated in an amount less by 911,460.00 than it was at the beginning of the year plus additions during the year. The financial statement for the beginning of the year showed a surplus of $35,703.00. From your analysis of the disbursements and unpaid accounts payable at the beginning and the end of the year, you find a total of purchases amounting to $651,910.00 and a total of expenses for salaries, wages, supplies, repairs, etc., amounting to $120,115.00. nee a 2 es? ie aS «6 =. a [oe ce - 4 n= To eer Leet: SiG WES — wad. - * r - Oy WefECe? ( 31 + ti 2 soreqerq yrotasva! ssyvo mort s at yxotsoval eitdy yclel ff =zsdz OO.f92.£ Ff . =e © o «eo = @ Ae Boley O0-886,0£ . « « eos A Otek = soneiae 1.[8G,€n - . s+ « Sficeyteosh aiavooca mi Neore ae %). 00 et - * * rig 64 T2160 uatte é 0. 8¢ a « oe «= » daemgiirns oTtV ys e > « YSOtheval. sact 68 rec . « ere « eet 79 ei rx 056¢00.28 a . & txod «— Fi: COs TE GE 2 “as « #ideyot stosroook OG .900 CS 1s + « © of Oldeyet og 0. GI. 08 ° - - & + » OC ‘VE sfi3 cS stoomstsce Istomentt sdf to woaelreg enenecvods odt fed? Haeki woy tsesv eat to Bae 2 rc eeel-tnyome as al nbodste ef taengivesd Bac. s7eee auic unsy aft to puinsiged sd¢ ts een. 2s gene oe 229% cs gakeub oao! eee izey ef? to setantged sdf tot tgenedate Eefonent? edt -00.E0T,228 to var lquye Fs) borode, = eiseqgny tac steemeenudelh odd to eley Tage aigoe n0vt al en POY -teOy ont x6 oS? Sar yaianindd eet. ts sideyer stayvedos - isvot o bar 00.056, 2598 of sattovone aseeoeme tostetotue ont qeors yet eeticure ,senaw ,aotesiae 92 pj ag “Seas Oste * gait PROBLEM NO. 2 2 (N.Y. C.P.A. Examination) T. F. Fynes and W. J. Altherr are partners in business, Sharing equally in gains and losses. Their books have been kept by single entry, but they desire to change them to the double entry method. The following is an abstract of their affairs at this time: Assets and liabilities per ledger: T. F. Fynes, investment $12,500, withdrawals $2,500. W. J. Altherr, investment $12,500, withdrawals $2,000. Sundry accounts receivable $8,500, sundry ac- counts payable $6,0CO. Other assets and liabilities not in ledger: merchandise per inventory $18,000, cash in pank $5,500, bills receivable $2,300, bills payable $2,000, bank stock $3,000, real estate $5,000. _. Determine the amount of gain and loss of each partner at this date and formulate a journal entry that will convert the Single entry ledger to a double entry ledger. Ref. 8-3 PROBLEM NO. 3. (N.Y. C.P.A. Examination) You are asked to prepare an account showing the profit earned by a concern for a certain period. The books have been kept by Single entry and you gather from them the following: eke! gd ee Ge og ee stn a lee ip dain ism Wiel © owe ee $19,360 Se ee al oe re i nwo we ce a ene oe pce Se we mits 0 iebetene 2,600 RA MCTAT TG eT eI Bara oh kui te Pcie a alas oo de ee oN ee 15,600 Merchandise, «...-:s re erred ct aie eta a eae timers ae 10,400 Ne mR ee ar Re Te er ce Sar MINERS NG, whi c> nck ao oe 1,850 UMP ela has) qetr dalled Kann oa Pe een Ee org aS Pe anaes rat Sea a 3,850 1s OL EOC GE 0 ee ee nee Pere ere area os 5,000 Merchandise used by proprietor... ..- sere ee eecese 800 | The capital above set out is the balance of the account after $1,500 withdrawn during the period and $1,200 for salary have been charged up against it. Set up the profit and loss account. 154 e +» _e%%a + bal + » ~- - - . edu datas teas. 2 Waé I] IVE t + a ae a Ss re ~~ a t* ©* wk av 7 ~~ ond a At .- al) _-* - a ‘ts * AW © r ~ = , . rip to OF vo Be | i ~orrs - - ~ a - ~ ~* a - € “'s rd Fe - >? oo. ~ on ~ 2: io ° *< ee f ? ~ Tod a a - : ~~ ‘ “ , ore ad 29 rt ) o mb 4 a oo ~~ ——2 o : .* = Me ad - : ~~ fre s aii Wo tog may * ‘ee e a ' < ** Pe - - ° * 2 al * = - _-_. gs@¢eves ~ > * oe *-* ~ = * - _ - - - r TET : 998 5 5 be + - - « a f Le " ALS 7 sacsnleyg mi srontisq ots sods i ~L. oW s99d eyed efocy xi9AT .eseaol Barc enlep of eldveb sa¥ OF socyl .3 .7 stomgbsf tog ool istfidatl bas aevai ,rzsddiA .t..4 .008,S5 elevesna pi sGBE Sree SISsues THES e000 ,.< . oidewse | iw o * oO eOO0 -S6 elteve 2 eff? me | t 008.56 sidaevie (iw tart yztno Ieniwet « stelemot Bee s$sb fF ~ iivoda tapooos ms steceqa et Beves exe ucY nolo? edt medt most tedteq voy bar qxiae of a+ 6 @are eh aa ee 2 eee ota vavs cen Seige as p SUTURE entero eneeens gb eee see. cee Oneeee erfth . 228 (OS O08,i¢ Erte. ctzex sgt pe ave ie * IG, t' > f ca were © S ,O uauaer 7. oe J rar (no ttenbmer’. oAnT-D oom of - a ip | Eyiiovpe antzede mei? suaedo oF, stiess yous tad 9 ro oft to ‘Soe tdads ; i f “ie mm of ot: ro fot © Ss ; pig idavisoes1 sinucsos yrbawa 000, , ae frag =f faso $209 S59 ‘Yaqsqeens ke = as ag Sh mee s006,.¢5 ese bas. tisg to tavems sf? sntureee em SF : fdvob BOF onb3sf. Yurns i ST Sift eLotred aisti99 & tor nrssice: ns ty i Q -J, . o- ves resewesy ain ss etienes eee eeeaa eae £9. <2 ee ee ee ee re: to cree ess wwnsnee on eae LUD Leoee ale PO ie ~ scbiedeescp aes bslsutee eae rere lene rnebasecet 2 caeavaene sTOSBEt youg ¥d beau athendoteit a, a evodn. Lett : ag a sme a _ a9 PROBLEM NO. 4. 3 (N.Y. C.P.A. Examination) John Doe commenced business with a cash capital of $15,000. At the close of his Saga period the ledger accounts were: accounts receivable, $4,312. 503 merchandise debit balance, $5,062.50; ac counts payable, &5, 375; expense, $900. Doets total loss was $2,775. Prepare a statement of assets and liabilities and the profit or loss. Retr. 37-1 PROBLEM NO. 5. (N.Y. C.P.A. Examination) The ledger accounts of Henry James on December 231, 1915 shoved: Agcounts payable $16,125; accounts receivable $13,188; ex- pense $2,450; debit balance merchandise account $15,187. fe had started in business January 1, 1915, investing $45,000 cash. His totai loss for the year 1915 was 8,074.50. Prepare a statement of assets and iiabilities and the pro- 72 ueOT. LOSS, Ref. 40-3 164 a | i nro i tents efdeysq alfid ;ff. £E5,00 treresos acivetbh rs ot ays mibsit ak eome Led :000,233 by s'ynsguce efdso etomen a bad) eldevisoer etrsoons ‘fs.a8% $63 {¢tiorg. peorg 3 mated) “Tuq 0 otmrooatd gods? atigior? -88.278,085 (bsbyloxe e 8 tuo ofsM .08%¢ aromostayo bowolle ed cvrooekb rte ebrooos stitorg edt gatbivib retie bas sinonotete esol bags $2 ibaa ostd wagsee® tesda~sonsied & stagetq ,tcomeerge edt ot pot »tesy ot to SRDS: edt ts rend tag dose, to bat . tet ot bas 58 ie nied Sateen : al | off .OM MaIaORS (rotésmimex® .AyI.0 <¥-10) mF ot ,S -tel qiderentxsqos s mrot diing..0..% a : EtanoGex a al, feaoitipbs os sedam dita I dotell 0d Te gnttsaves fore ,.ee ") ef ylet .006,.f9 swsrbhdd iw biancodol tra Got to ayo feb efitorg sdT 002,82 evarhdsin ditnd bas by tesvat bie .8Eftorq to call bas taonssevat oneteve ghicoas kas fone wode boteovnt Istiqra edt of molttsogorg at Sobivib 3 tod mi iy Oo * BoP) Ty men , .s ah x ’ ' rie w page? > oo -_ [ r] , | i ‘ Sn & 1 vis ‘ 4 a! ; , S55 : » Se alae a PROBLEM NO, 18. g (N.Y. C.P.A. Examination) x, Y and Z are partners in business. An interest account is to be kept with each partner for his investments and withdraw- als, and there is no expressed agreement as to the division of the net gain or loss. X invests Jan. ee $15,000, May 1, $10,000, and withdraws Feo. 1, $500, April 1. e600; Jan. i, a 060. Y invests han, "lL, 15,000, June 1, $10,000, and withdraws July 1, $500, aes oy ane 60s Z invests Jan. ale 1,000, and wi thdraws Feb. l, Beco, “April 1, 9300, July 1, $500, Sept. 1, 6350, Nov. 1, é500. By th terms of the copartnership Z is to manage the business and to recei ve. therefor 3,000 per annum, which is to be credited to him as of July 1. At the close of the year the business shows a gain of $12,750, without taking into consideration the matter of Z's salary or the interest on partner's eccounts. State the amount of net gain after all items are considered, and show the balance of each partner's account when finally ad-+ justed. Formulate the proper journal entries for closing. PROBLEM NO. 13. (N.Y. O.-P.A. Examination) Three men, located respectively at New York, Chicago and Minneapolis, conducted a-business as partners. The partnership agreemens recited that the New York partner was to receive a, Salary of $5,000 a year, the Chicago partner a salary of $3,000 a year and one-third of the profits of that branch and the Minneapolis partner a salary of $2,000 a year and one quarter of ZO6 prortits of that branch. Six per cent interest was to ve allowed on the capital used in the business, $500,000, which was employed one-half at New York, one-third at Chicago and one-sixth at Minneapolis. Repairs and renewals were to be charged to plant, and a depreciation of 64, per annum was to be allowed. Interest on berrowed money was. to be distributed according to the invested Capital at each branch. Plant Account at the beginning of the period showed as follows: New York ¢250,000; Chicago “$300, 000; Minneapolis 715 50,000. Repairs and. renewals paid Seen tne year amounted to $235,000 at New York, $30,000 at Chicago and #15,000 at Minneapolis; interest on borrowed money $15, 000. Subject to these items, the profits of the year amounted to £50,000 at New York, $35,000 at Chicago and $25,000 at iinneapolis. Complete the profit and loss account for the year. Ref. 18-1 164 isebitd but bee aigouteorn, eld ‘to somes? BLE 2 bine Sie OLg ‘'ehf 000.08 Pag ht Prehyie 8 “odae’ ct DOE oe . ba Baa Pada pmeni edt egarnen lot Bie i pagpecng dor 9 | Of DStibots..od ot of dokart gawans ‘789 O00 gs: a biando. orm Revd tin toFte, “lag Pave te Nish tm, vAteG ed ffercis? FALIOOOS a*enrir sy manei ae . oats nOle tat eel CP LED: maha aut vegans ef 8 sos tk oO HOAOR, | ‘Cot tort ness eA Fad coke OY | Mite omeolt rit) . ~e2Oy: welt -yLeovitdecaes, Papo e tdavsodreG etl. . BTOot iss es ‘oaemt aud. 2 pe 3 t-evisoes of ofe ppetatn axoY well ent 2 O00 02 36 yealre s ceatteg Cpsotto omy 199 etd bas docexd saddest Touy, apt! 4 wettaupe gmo bes teey ¢ 000,83 to yualea s od of saat, tesregrt tita0 TO4 RED MA Ss torrie a cae. to. ae 2 fo td? .O00,00cy igat patend od «tf; beag ‘Lad iqne. auld -{iets~erte Eth, ogao tao. tz ii atney ret, ta Rut \g@te lz OF Degrado .ed ot erom ofdvores bore octedeh mo tacrstal skewollse ec idl aot Me LON: da ta mete hbeteeval est of galbadcooh Rothdiare p. adi o¢ 627 ott ix taatged off da “ gamr0008 Taek yalenaat 10000087 oncotdd 2000,0dS 9 aot wall, "gurtoe. Ot & Secey odd arivuh bisy elewenst fro) ere gg gOS ke OOO(2L bee onsotdd ga O00,0ey eek, * eee 200 Oy» ese arer, 3. tauoooe soduadert sth , sesmtand nt ips: to so 19tyEB Byscglt ay 68 direnedt ge pacesryas 'o + soueet ig gt TS Fars 1 F 4000 vet emoxr bid i wb 000, OLe'«. Rs a art pews Pi r mi or snal edeoor “Seam oe sof MOOR vue *tas8 aaa ae hie evois eos niagd orit ZESY ert To eects ene : wnt tettan of% gotterobteroo: ofa gabsteag tworttio Olt 8 he | BiovCcos Ba teagErg GO amano outs 20" at Posts sQCO ely > Lestoar bevosted ‘#0 \ J . mt a eit Dogeenarit: re ‘900 ae “bat a PROBLEM NO, 14. 10 (N.Y. Q.P,.A. Examination) A, the party of the first part, enters, March 1, on the per~ formance of a contract for $50,000, payable in two instalments of 685,000 each, the first of which is due on the completion of a specific part of the work but subject to 10% to be retained by the party of the second part me _eerobe te for the continuation of the undertaking; the second, gether with the security retained as aforesaid, is to be paid bed 33 acceptance of the completed work. A has a capital of $4,000 available for payment of labor, Which proves insufficient. He therefore takes in as associates on April 1, B, who contributes $3,000and C, who contributes $1,000, B and C to share profits in the proportions of 3/8 and 1/8 re- Gnectively; and to receive interest on capital at 6% per annum. The first instalment on the contract falls due and is paid May 1, at which date there had been expended by the con- ped thie for labor and incidentals $7,602, and obligations for materials and supplies furnished on credit had been incurred and were outstanding to the amount of $13,900, of which all but $1,500 are forthwith settled from the instalment money. On receipt of the first instalment, B and C withdraw their al and realize the profits earned at the completion of the stage of the work, leaving A to continue elone, it being fully estimated and mutually conceded that a further outlay (86,158 will _ be cepa i to finish the work and cover all 4 = ea 3 @ oy }-+ oO QO O 3 = 5 09 @ Ho i?) je. 4) Show by skeleton ledger accounts the cash payable by A to B and C, respectively, on their withdrawal from their partnership, and state the resources and obligations that remain to A on enter- ing on the second part of the work. Ref. 235-5 154 oz 2 oe (agttantuext hota a rot} ~req sdt no yf dorsit Geer an ae 123 ay ‘¢ wae (08. SOR Y Shred co ; prise eae eG. ef ylbsd m2 med a dot eatacd. ease ra a a Tobrsys ne QQ, Aa Sey. . ett ont — & TO. 36 Pik Go "ah i She. tow ie nN FY Hs VL se begs cy ee) ni “2 4 YES . q | a. age he v#hof teh CARLIE ran bed * oe ak edt at tegreta {hee at xogest. a a ae fa ik a, AE oF (om ee, ey ge pe arie ; Pine ‘miriievés. | eC) Tas * A te Nees . rays ties ee “eit, atontiog Moawted toghel ties edt gotwode. ic ste a te a rar al Me } : fy ey leo" a Te a ach 5 re es & oa ft OLCE LOPE ER Be PANNG RUN SES op tis ae OCT ALR ras me bs Meet ee AS 4 * QF a | ay PROBLEM NO. 17. 13 (N.Y. C.P.A. Examination) A and B are engaged in business as traders. A offers to purchase B's interest. It is inexpedient to take an inventory or to examine the books. The following facts have been compiled by the pookkeeper and are to be given full credence. The following data is submitted to an accountant from which he is requested to prepare and to furnish a Profit and Loss Account and a financial Statement showing partnership interests. Prepare the statements. CASH TRANSACTIONS Ate SYITEG Creve. «a0 sus! ab 6s 6 5,000 Cash payment for mer- B's investment,....... ee iy WO CHEMGIGEs.- seus ae $98,400 Cash received from charge PXPONSEGR gee ces - ss 008 800 Ea A ae a ee - 98,000 A's drawings,...-... 14,000 OL Ce oe save OZeOO”” “S's Cragemets ase ss 1,500 OTHER DATA Accounts receivable, ....+4. S10,000 Accounts payable.... 9,000 Ref, 42-1 SL i ae on “a : | | (so rtentmexd 188 fe a) . of srstlo A .etebert er esentend at £ to yrotneval me est o¢ sock gatvot tos ats 7 yd beliqmoo meed eved stos arivolflot eaT .eonsbheto Lfud ot betesupet: al ed dofdw mort ot Lstoneait s bar snyoook aeod Bae trtoxd = dete 9 -Stnemetsta edt ersqest Stier? st ctaevoadeog BE “Tom as dromysq pee, A 0.2 Rod ocd od ap ogee mi ath 003.88 i ld dat My -aeibaado. o \ S. * he + os, bee eee ghoont BOVE. 7 e 008 Sees eee es gQSGMSGRa ee ge Re ‘. ‘eptcdo moxt ‘bovisoe dest. G00 , dL wees eeg Ganiwethd ats QO BS vars ecereeneesenee edd ne (002,£ f acichabaea bit a'g (008.2 NRE RU ey eh a ‘ a f % hee us Mi kaa #6* | ATAT muro jn . we bg sigh Fi ; M utes OOO ea! Fu soldered - odngooeh 000,088. eked ..eldsvisoe at diy @ oe Pe wy ae f fia" ; _ y, sx, | re " | 0s GT ata a eh _ 4 ‘ i: “ Fa) A t. j ‘ y ; + : , : PROBLEM NO. 18. : 14 (N.Y. C.P.A. Examination) The capital of three partners, A, B, and C, in a manufactur~— ing business January 1, 1896, was $26,000, of which A owned 1/5, B 2/5 and C 3/5. On December 31, 1896, one year thereafter, the condition of the business was found to be as follows: ASSETS NeGl SBtALS Si WAIN sa. ok ws ss Meet w ala 8's 40 . $15,000 Pate OfiL ECE Tad wale eas os + 1s Gee Re 3 ae aa 7,000 SROCK OF DAG gw erwin ance wean este ees em Me ms eee eens 8,000 ris SEM eek ag emied Gk alain sdk ones ere RC Ne 64a 6, 000 CR Rg sae aie ae eles em nk 6.5 $8,000 Partners’? withdrawals: A A imciudinon intereat ), +--+ dare. an eas $1,500 B lincwuidingd interest )y.... . coer. gue + ee 1,200 GS (inehuding interest), ..1 «+ cone swat 83,000 4,700 After crediting up interest on capital at the rate of 6%,, show the net result for the year, and distribute the same, in the proper proportions, to the partners' accounts. Prepare the in- dividual partners' accounts, showing the condition of each at the end of the year. Ref. 45-4 164 ~wiostunsu s at ,o bas .d .A gartentireg oordt To Lett La\f bonwo A doidy to 000,889 asw ,a@3l ,f yrsuash e eit ,retteersd? rs0y eno ,dCBL ,L& redmsced a0 -8\S 0 | sewollot as ed o¢ Aavot sav eeontand | to : - - BTHeeA Sere: - jaa abs | om OO0.8IG ow wen see ee ssnseencenpegammibiivd bas etetao feof “oe 900,° Se aed seem ewe eee scutes caew céue VE MNECORM baa tnsll re iy th 000.8 Bs, ime ech @nae 6 Be oes ee ees ose 6 gee Ito foots — | Pade | ‘i 000,93 Sb hi cbs le Maes 0 40 RUE Sais 00h aan ae or td Q = anh ' 002d .§ ” #eeeeen Se un’ 6 0 Te ahaa de. cian ee fa) aes. an | purtidreata” . O06 .& Ban ease« «'s', » 4 6 o-ahielaes ere niga ae alf{id ,erotibero i ) talavertbdsin terendrel ee ee cocsseneg Geetedal seihutoas) 2 oi 006 ,L ee ee | teetetal gntbulont & ey Mr OOT Le OOO Scere er eereraceeylteotedat gatbulont ae «onl «wd to stet odt te Ietiaso mo teetetal qu gatvibers eeetA Sek edt nt ,omea odd otudittealb bus .xsey edd 10% tiveor ton edd wode “at aft ereqett .atmrooca ‘arentrs¢ off of ,amolszog TeqEwMge: «| edt ts dose to moitibmos edd gniwode ,etmvooos “eremtreq TeubivibO ath Ae bol PROBLEM NO. 19. pe (Washington c. P. A. Examination) H. Pratt, F. Jones, and J. Todd entered into partnership on wuby ay 1914, Pratt brought in as capital $15,000.00; Jones ~10, 000. 00; and Todd, ¢5,000.00- They were to share profits in the proportion of one-half, one-third, and one-sixth, but as Jones and Todd were the working partners, they were to be credited at the close of each current year, by way of salary. with the respective sums of $1,250.00 and $750.00. Pratt was to be allowed to draw each year, as against profits, $3,500.00; Fones, $1,650.00; and Todd, $1,350.00; interest at 6% was to be charged on such drawings. The partnership agreement also pro- vided that Jones and Todd should have the right to bring in extra capital not exceeding $8, 000. 00 each, and that upon such capital they were to be credited with 6% interest. Upon clos— ing the books on June 30, 1915, it was found that the partners had drawn as follows:- Pratt : Jones Todd Berta «< 5 wy OUs00 fur. 1... “400.00 AUGe bos + » $300.00 BOY. 2s «+ « 7EQV00" Bept. ys. '. 350.00. Septed - « 250.00 PEGs, Ls « « 000800 Met aor wer. ° SOO. 00 © Retard a « ) 400.00 Dae BW. a. , 400.00 Ferme a < 100.00 On October 1 Jones brought into the business as additional capital the sum of $1,200.00, and Todd, $3,000.00. On closing the books at June 30, 1915, and before the salary or interest to partners had been dealt with the balance to the credit of Profit and Loss stood at the sum of $13,000.00. Make the clos- ing entries and prepare capital and drawing accounts showing the exact position of the partners on rina Ly 1925 16 b ‘ ’ a v= f re, | I rer. Li euiy oan n° Ay ie! a al | o OL Ou MAAORT qiderontiucg Otnt borsetie HOT VG Drie ,2onoG 27: venol ,00,000,6L° (ctiqeo es mi stauord tier etitorg otede ot s1ev yedT +00,000,8) «hbo? bi tod .dixie-ano brs ,brititesno .tfed oss ale . $70,000 stock per inventories,..... » ence te 26 ,000 AGCOUNTS TECCIVADLE, « « s-vivieiain stale 14,000 An arrangement is made whereby Gray receives $500 from Brown for accepting sole liability for discounted bills receivable. Make up a statement showing the amount that Brown should receive, it being understood that losses on capital are borne by the partners in the proportion in which the profits are divided. PROBLEM NO. 32. (N.Y. C.P.A. Examination) X and Y went into partnership eight years ago. By their articles of agreement division of profits was to be four-sevenths to X and three-sevenths to Y. During the last five years the several annual business statements signed by both partners show that the profits have been divided equally, the difference being an advantage to Y of $15,000. Y died six months after the date of the last balance sheet. The executors want a statement of Y's in- terest from the firm's books. It is agreed that his capital is 965,000. Show how the accounts should be adjusted, the profits for the six months since Y's death amounting to ~12,000. Ref. 7-6 164 él " (moiventasxd .A.I-0 Tol 2 aba & mworh msewted soitelixe tuemeorge qid mvorvd ,btidteemo yexD bas as btorg > tauocos Istiqso etys1td .000,08% bet tboro af tefonoo qidetentieq est to atoees odT . 000,895 ..... tes soo sttenitoam bas ysosost 000, 0 Peeve - @efrotaoeval rq aoote iN ar 002,.2eL eee nee eee arog Oldevioner stomooas ae F ‘:enreglot az exs esittiidarl oat OOO,8L sn. eevee BtOP2BOtO ditty avnuoood oe ret ei O00 ,Of Pune eeemeneeeneses BLOLYSG efita Sten: 7 oag 003.2 po: conte Rm RRREe te Semnene anivd Fears ea is 7 A) a gs mitt edt yd betnvcoslh need evad eldevieoet ellid taetmO e380risud odd mort sarisver aword .008,6¢ to tmetxe edd ot dnsd © eteses eft bne ,benottmem evods es esttifidsll edt 19vo eexst ys1O ;moitsufsv besrge gnivofi[o? edt ts 000,08 .....ces.-eqhtemidonm bas yrotout 500, 86 conevowes ee g@Oltotioval teq Foose : 000 aL ** ewe ee ee @ese idsvieost eatmyvoood rod mort 0085 esevisoe:r yard yYdexrede obam el te mA dnonegnette ‘ay -Sldsvisoex sllid betnyooath tot ysilidst£ foe gritqeoos sot sy blyode aword sedt sovoms ot gniwode trometsts & (Wy exsl | smtod sts Istiqso ao aeesol tsdt bootetsbny sated tt ,evieosr «hebhbivib ets atitorg oft Sokdn st ap SE RORNRS edt axondteg we ay - | a0 tem ae okS ,OM MaaORS . Ag a a ‘ : (mottenimord .A.7.0 .Y.1) i. | tied? y& .oge eresy trgte Tideseateag o#nt tnev ¥ ie 3 | | Siitnevse-wot od ot sew atiiorg to sotatvin tneusetgs sd otis — edt @zssy evit tesl oft satiwwd .¥ o¢ adtnevee ies oF tot etiiere edt otari bs od biuode atmyooos edt wrod vode ¢ eSly oF yarenenes dtseb ety conte paige SOL PROBLEM NO. 22. 17 (N.Y. C.P.A. Examination) A. J. Smith and J. D. Gray signed articles of copartner- ship January 1, 1895, each investing $30,000 and agreeing to Snare equally the losses or profits of a trading business. The copartnership was to exist for five years, and shortly after it terminated Smith died. A trial balance of the accounts of the firm, taken January 1, 1900, was as follows: Aed. Smith, drawing ac- A.ds Smith, capital BOUT tevies vibe casa tee Seo, 746.00 BOCOuNt,.++..- & 30,000.00 J.D. Gray, draving ac- JD. Gray, capital CCAM T ice.» & pear ckade Ge 2a 13,890.00 BCVCOUNGs ++ ees. 30,000 .00 MOrcnandlacpa-.s sees © i 55,000.00- Profit and loss 104,695.00 Horses and wagons,..... 15,000.00 Furniture and fixtures, 5,000.90 CRG 5 aa cae wae eee tk : 2,007 +50 Mortgages, -....-+es5--- 10,000.00 Bills receivable,...... 8,000.00 Accounts receivable,... 09,791.50 $164,695.00 $164,695.00 The surviving vartner took possession of the merchandide, horses, wagons, furniture and fixtures, and continued business under his own name, at the same time acting as agent of the firm in realizing on the remaining assets, September 1, 1900, he re- portec to the executors of the estate of his late partner, that he had collected $35,000 on open accounts, $5,000 on bills re- ceivable and ($1,650 for interest. His expenses had been as follows: clerk hire $500, lawyer's fees 1,500, miscellaneous bt de he had made sundry allowances to customers amounting to ws . ; ; Prepare statements showing the condition of the respective capital accounts September 1, 1900, and state what amount of cash is due from J. D. Gray to the estate of his late partner. Also prepare balance sheet for same date, Ref. 93. 164 vE mi | 88 0% ~ronttegos to sefolixs bengta yer .0 +L. ba Webhee Goh , BAF yYleure oxurce WeGiterensasjs9 ay ine beteninced =, aos mel golst crit tf astis ylttode bas ,cresy evtt tot tetxe ot odt to atayooos eft to eansled Isiztd A sawollot as asw ,00CL gf yx | Iesiqso ,dtime? .t.A | ~oe yaivsub 4! tm@ sted 00..000,.08 Go s+. , pOOOS ADer.GG S cdheeeinis i pa eal fstiqsd yyst) .d-b . | . 08 gaiveti) yer) .C.t 00,000 .O8 ; «seen e gt IUOOOS 00.008 ,.S4 ee tayvoo | 00,369, dOL esol bac vt tor? : ) 000 ,.cé eee ee eee nee .9 tbasdorelt La | | | 2000 ,.eL eres geMoger bus aseroH — 00,000 ,2 ,comwdextt bas owttoxwwt 4 02.738 .S @oreeneees Perererrr yy) ais 00,000 ,OLf Perec nees ere n OOQEQTION ) y ea 00,000,8 .e«-++,0ldeviooes afftd pais (Oe Ler ee ones OLdsviooet atayoool Ae ; aN 00.283, 295% 00.368 pL. | .2hibnedorem sd¢ to moteaseeog woos seatuec acivivuve edt a esontaud Bounttmoo bas ,sommexti be otudinxwt ,enogev .seetod mrit oft to dnegs as gaitoc emits omsa oft te ,omen avo etd sobay ~ot of ,O00C@L ,f redmetqge® ,ateses gnintemet off mo satsifee: at tends ,xontisq otsl etd te etetes odt te arodvoexs ont of reap ~er ailtd mo 000,23) ,etmyooos aéao mo 000,.a83 bovoolloo Sea se ac mood Ded esenequs ali .testetat tot Od8,.£0 bas efdartso avoenslLovetm ,00d,£5 soot a'raywel 0084 etd xwxelo sawol lot | ot guitavome ersmotayo of soonsrolic yrbawe ebem bad ed ne res i. ‘ . ew ovitoogasy edt to aottibaoo edd gntvoda efnenetste otagest fgzo to savoms tetw stste bas .OO@L .I tedmetqed atcyooos Latiqaes CaelA ,.xomtrsy etsl ald to ststas oft oF yerO .2 .% moxt ond of | “ea e9t8H ompe tot teede sonsisd eteqoerd ABH@ «ton ge ine hee Pe” a9 Sea hi # a, pees . Pp ee Ok a : e- seen Swe ‘;* aera ieee oa OR & f ; pe & » mm) apatie et B., .. PROBLEM NO, 33. 18 (N.Y. C.P.A, Examination) Wright, Barnes and Wood, partners sharing profits and losses in proportion to capital, viz, Wright one-half, Barnes one-third and Wood one-sixth, decided to dissolve the partnership at the close of business, December 31, 1900. A trial balance of the firm's ledger at this date showed the following figures: PP PENUBLCE DIL LED ic ene: ste wae « ..mnc eee ss © 15,000 BOUNCE A, . CADIS! , om ns oda wn EP are er a Oc ee ae 10, 000 MOOG.) CODi 4a lat 44 eae adie EE bin,s 4&4 %'s bgid ee Ee ae a 5,000 PONG SING MOTEL CASS) pada bin was cae 04a sre eae ~. 26,000 Merchandise on hand January 1, 1900,.......... 15,000 BOP) PUT SRST iT Re yin a woe ak nek oa Oe 6,000) C2005» «skeen $s ews ee eee 2 eee emer e Po ‘ 4,500 Bills,receivable,..... a eee wiry we * £0,000 PS OUNG Se POCCL UA ONG 64s eed ce ens ee ey cs alee » 64,000 So laa a G4 & dw 9 W vs we 6 mae blag 3 sw oe 30, 000 PM PAVE ONS ber se cas eds be hae us seen ee : 20, 000 eT Ce POCTUER soe eves caves eces eels Tere Ce 900 ere CS ais ha (nog wk nc es a ie alues $s = 0 6 o elon “% gogo Nee * bie 46h y-4 44k hae ewe ea vo »13 Months - 395,000 Pia CUMBEOs isu oe so 0k ow 0 is ele wae & “aye " be O00 PEELE, +. 002s SE en eae ee . n 4,500 BALAPIGS ATG WAGlGs.e.sases Tee, eer oe " 13,500 ee re ORONO sh es valent leu.e «elles » « n 3,400 Rar ee et. pS k's ie daca. hee Pa ; " We od UNM ES yids dig 8 8 n'8his eR wy ». 9S ay 8 eeveeservecensd e@eeehe GORGH RO esnrcooh: <<) seen cd bane canien ee ne eehiese eee MmmeEE ee teorstal 0 at @Geevrexenveae cevdvssesesens heen RReereO eS soxet 00 ~eES } anfgnol BEv dia viv bb.s cocks bon seems Sinee ean ~ 000 .acl ache celp ane ones sneha on cee eee OR gt ® Siete. « sails oper nae ¥ manna: 8 000 Bee Wives tmenhy« Wels Ghd Ss Ade Pes ine ss ons Oe UR De eee e. OLN: 5,000 Balés of Cattlegese. tars 4 eo oLawole leper es «i. 35.08 SEO 869 LOanaod. shake S¥sies Hi. PORES. oiocceotak. We Borer. 2c. | 15,000 PAYMENTS PUrciadee nota thle pu. gard. di ews dwdive. i ecdende wes Wel aE a: ° $57,000 pet a ee ey ee ee. eer eee err 14,000 ere Re aay 6 adel a ee died e's ie hoe 0 + oe 06 ee es 4 4,200 SRECLOU Ga asa ae ae « 2 Pare (rrr Porn irer s2be chr pea 1,900 BC ONEOS Ss vost donc cscs evegewns +e AOOda. » « ORR ees ee 9,000 A's withdrawals,...... Leer er vee etliueds + ta Gee... es 2,200 BS WiGRGCYAWELS, «sce awe ewes me aiehs Teorey re 1,800 A round-up and branding of the herd showed the following in- ventory: 30 heifers @ $20, 38 steers @ $30, 75 cows @ $20, 10 bulls @ $60, 75 yearlings @ $12, 100 calves @ $8. There remained with the bankers a balance of $16,150, and other assets were as follows; horses $800, tools etc. $100, supplies $150, accounts receivable $750. The firm owed the following pills: branding irons $40, salt $100, lean at bank $1,000, unpaid wages $260. , You are required to prepare such statements as are necessary to show (a) the financial condition of the copartnership at its termination, (b) the results of the three years' operations, (c) the interest of each partner. Fae eee i§ ‘Ty en aha eis is - O& OW fade fiotdanteae® en if ee “too?e 6 at atendxsg i ams obsxolod | anitudiztmos ome ,000,0L¢ to detlane 8 Atte on ve .dtaom 199 0082 to ay ~toud odd otsmimres of bobtoeb yeds exssy estds to Dae qideteatraqes eit to eyemom oft ffs bolbned Rony sstmomyedq bas stqisoer entwollot miead betrogst 4a ee sy 000.2 Se! Ce eeeoweeneos ae @ ees wie -svebelaleue oa le» ceseeeeeraes edomgoovat 4 7 nie OOO re ef? ee eae eee ee ene ee eevee eee Peet eer tt aoe een ea & tnomtesval cy 7 : 4 * ; 5 eat . Os: PRR ee eee es obs tereeteaeereesesoerenrerse weg OLItSO to ¢ A 000, 2£ Vw eeeer env s een 'o & wig o ee 2 whe ri ie STUIMYAT ) 000, T2% TTR were rrseeeereenensarosaresssagesegOled eo to seescio OO>G ae iii ee ee ee ee ee en ae 2 4 . 008. ee en ee ee a a COs ewes op ane Gale es owes 6 4in 4G RERLRE e's 000 me ae e*e@ee ev eva oe eet ene TANT e ee rere sens eeeereressaseneses gSEOTIST 000, e Pete revere se seve oe ees ester ees ee ee eee e este ene e we asamedx 008. even deonwn ade **@eeew @ + & Lee eee ee ee ee ee ee eleva: tiw Kn ¢ : » De s 008 .£ Soe eeetvae Fee ee H Oe eee ee reser ereseegese SLONST ONS Lh ad ~it age ot edit bewode bred odt a, mibasad bas q. 7 ® awoo é¥ ,0&¢ @ arcsta BE 4083 9 daiies Os, Oe, iysocme i iy | -83 @ eeviso OOL .SLe ® egailzesy &F ,08¢ | bes ,0&f,3f¢ to somsled 8 stedaed odt dtiw benismes steaT Si ,OOLS .oto afloos “008s serod gawollot es stew rt igers anes a 088% eldsvieos: etmrooos ,02a selicane tise ,03¢ emort galbaetd sellid wolfot oat bewo ar j -O382 segaw bisqau ,000,f$ xaed a YTSeL999N Sts ‘es atnemetste dove eisqerg of boxlupea stare agi ts qidarentisqgos edt to moisibnoo fetonen eee ee words of (0) ,emottersco Tarsoy serdt ot to atfues: as cs aunke : ode | ft ‘ becsedes 5hy flores te a $oL PROBLEM NO. 87. 22 (N.Y. C.P.A. Examination) A, B, C and D enter into partnership with a capital of $100,000. A invests $40,000, B $30,000 ¢ $20,000 and D $10,000. They are to share profits or losses in the following proportions: A 35 per cent., B 28 per cent., C 28 per cent. and D 15 per cent. ene are also to receive stipulated salaries chargeable to the usiness. At the end of six months there is a loss of $8,000 and mean- time the partners have drawn against prospective profits as follows: A $400, B $600, © $600 and B $400. They dissolve partnership and agree to distribute proceeds of firm assets monthly as realized. C and D enter other business and A and B remain to wind up the firm's affairs, it being stip- ulated that from all moneys collected and paid over to C and D commission of 5 per cent. is to be deducted and divided equally betwi A and B for their services in the winding up. The realization and liquidation lasts four months and the transactions are as follows: expenses Assets Liabilities and losses on Realized Liquidated realization exclusive of commissions BOL MONTH: Fives ee pH EAA LS $30,190 $$ 7,900 $ 400 Mii MTGE eee Ta GS Tha es 50,300 6,100 750 OLA Months sai sseds xe shh ease t 20,010 3,800 340 S2th° months .4+ssea% s 7) Cv eee 9,500 2B» 200 110 $110,000 $20,000 $1,600 Prepare partners! accounts showing the amount payable month- ly to each one. 164 Sf “SS LOM vsaeoat a, | (mottentinsx® . A, q. 2 e. ce ™ to fsthago & atiw otderendese¢ ofnt mon t bare 9 m| 000,088 @ bap 000,083 5 000,089 4 .000,0b8 egsevnt A '.000,00L8 secots TOTOTT twollo? oft mt seesol ro atftorg yee ov 9% oat =a -tmoo ueq Gf @ bas .taso r9q 880 ,.déme9 tog BS @ yedned woq co A oft o¢ eldseatedo asixrsfsa botsingtia oh eit Pe cots ete yoeT ‘ee ela anaalenatel «neem ban 000,88 to ssol s est rns addmron “be to re ‘ean th. 88 atk toxg evivooquorg tenitsas mveib eved atea ont vais .00D3 © bas 0002 0 ,0083 @ CODD A demoiton abesoorg ebadine eth ot seTgs base qidetentrsq evfoaslt wT eeentand tedto totae @ bas 9 ,besifser es yiddnom adseae wad to ie a ‘eg¢ite gifted tf ,stistis efmrtt sid ay baiw od altemet & Sans reget co a ‘Cd bas 0 o¢ reve bleg bas betoelfos ayeaom Ifs mort tadt betele i yifeupe igen bas betouheb ed of Bf «tn9o r9q 2 to aoteaimmoo iar xlbatw edd mt asolvtea siedd sot d@ base A nSewsed >. “I oft baie ad¢mom rot atesfl nottabinpti bas motvasticot ofT A, :awollot aa srs anoltorenstt “GSSRSAKS nem ee ay 4 no eseeolt baa soltiilidsil atoaes jotissilses betebiupid bestissh to svisuloxse antotea tomo | = | ee ae 00s @ - 000,848 oeLoe & oc tereeaeenens baad ter oef OOL,8 QOE 608 <7) i e'noe's «dae + ee 0 ee OLE 068 ,& OL0,.O8 isd. sdbhiierne bré ” ul re 00S 48 00¢g,¢ wae es eres ee ane i, eiinon efdsysq Sodom ont ee atmyooos *etentted sxsgerT - 9110 Frage ot xt bat PROBLEM NO. 38. 23 (N.¥. O.P.A. Examination) A, B, C, and D, partners sharing profits equally, decided to dissolve partnership. On June 30, 1908, an arrangement sias made by which D was immediately paid $18,000 in cash for his interest, and the remaining partners liquidated the business. The detts were paid in full, the machinery and fixtures were sold for 921,800, the merchandise brought $17,500, and all accounts and notes were collected in full excepting a special allowance of $500 made to one of the customers. An amount of $2,000 was disbursed ror expenses in liquidating the business. Prepare profit and loss statement, and a statement of as-- sets and liabilities as of June 30, 1908, using the ‘value of the assets as determined by the liquidated values; also prepare partners! accounts showing the cash to be distributed to them. The trial balance of the firm on June 30, 1908, showed the following accounts: We CAA ca BOCCUNE, «6 6 oe cs evclca dees ss obs REA Os Pe $ 25,000 Sf GSU eA+SUCOUN tb erseuned: ieee reay sis. cca we tee ‘ 25,000 C's capital account, .«.....0% takes HEL Oe400 POLES ENSUGIVED Sree eadt ac dis mathe reds Kee ay: eee ae 14,000 Sey ee OCS. VALE ale 4.26 050 Fo ees ok + © © oe wo biel eel 36 ,000 Merchandise inventory of Jans 1, 1908,.......«: 20,000 MAG 02GE77+0NG a. LREUPSE a ae ta eden bes Twa we oe MER 25,000 Merchandise purchases, Jan. 1 to June 30, 1908, 70,000 ee Ne en er ee ee oe eee «3 10,000 et Oe COS OOTE OS 6 odo oan whe em) ene te + wad Ge Gg 88 8, 000 BOnt Ga obas ches tad «bois edly i angi aaah‘ re ar ee re 1,800 DS ars cabias-dapids, 5 Aiea + dake « hee i natn: ben enes 1,000 AST ee are eee a ¢ ebm Sete 3,000 Be PEL SCRAL WACCOUNG ocd os + a FRE He RULER ss SOM 3,000 oe DEP EONG. UCONN, <6 shes bee e be ae eh se bas en awk 20,000 O'S YOTSonal.accountp« ces ews Hi ans 4 ere ey Te a Te . 3,000 BALES, SAM od oCOr) UNE OOD ys wie oom cart ees is we hee's . os 75 ,000 ee CE VE OA ss oe wikis acs © a's 8 «le « 0.6.6 we » 6% wlata lela wible® 20,000 ROCOURLE ADEYAD1G 5 « anew ts ones Pr emer ene ones bam nee 19, 300 AGGTUGG INLErGat On NOtESs ace aver nese es ne tmeee « 500 BMOCTUCO stheOG. oo) ove + nemrehes nts thes tid oe tee o mia OOO PGBS Ba gssiw acdiatash » a a Hae a $215,700. £215,700 88 | 8S .O uIeon (noltsntwex’ 64.5.0 elf) bobtoseb eine asttorg gxiveds earontrsqg .@ bme «Do «ft A | Sei dromsgcter Te me ,80ef ,08 enul m0 .qidetensis eviosets og ~ atd 10t deso at 000.8f0 bisq yfesvatbommi saw C dotdw yd obem | | edT ,evcentsod edt hotehtupit arendisq gatnismer edt bas ,taorveiat | Tot bloa evew eetudxit bas vromidosm odd ,ifivt at blag stew ot: ‘ob hewn ure wewn eet oee eo sneehodees ess «0p n grin eetou 008 ,.eL (istered ibaa at cece rcv sevens seg SLOSYSE. SIAIOOOA 002 ciao scecenvcoeecse g@OtOn moO festetal Seyto9oA 000 .f mm vrata Cove eect srererswsenesep ee ses geokee hewrooA OO NGS. OOF» aise . RPS ee » pe bea ae oases geleeen $-3§ . tefl. PROBLEM NO, 29. at (N.Y. O.P.A. Examination) C, D and E are partners sharing profits in accordance with capital investments. At the end of the fiscal year, after all nominal accounts are closed, the books show the following: FORRES i ess +a. a eae °§ 20,051 Oy Wate s a ik ets fib lS Sa stl ir ah soe cn ... 60,422 Inventory of merchandise,.......6.. +600 at Eee Bet hA; Ml Gel vabDEhds lateness sels Sr daueevds tice ee ah abel BOOM Be CcOuntauTeCet VALS plnacce sce ws s.ece y+ tite tOe BS Bt! TiS. .«isis intestinal el Oe #.. td ‘ 8,400 D n ya Se PRES hobs os odo eee 6, 000 E n BP ce ee ee te 4,800 Bille payableycenses «6 \ Oe ae mA o. Sear C. capital, 00CeGerk 6G sles. Ts dejluls See 100, 000 D " ie Maa AMS Pe. alae ch tela ‘ 50, 000 E ORG Ge A GA Ts Les duis ee 50, 000 Profit & Loss, undivided profits, ........ 24,193 wee ES 2209 403 aod , 403 The partners thereupon incorporate a company with an author- ized capital of $250,000. The company so formed purchase the partnership assets and goodwill, not including the cash, $350,000, payable ¥200,000 in stock and $50,000 in cash, the last-mentioned cash being the proceeds of sale of stock to F. It is the intention to divide the purchase money stock among the vendors in proportion to their former capital and to adjust their accounts by the division of the cash shown in trial balance, which will then be placed to their credit as loans to the company at 6% interest and remain as working capital. The bills payable are to be settled by the partners. As the drawings of the — partners are not in proportion to their respective shares in the profits, the partners are charged with the interest thereon in the following amounts, viz: © $231, D ¥165, and E $132. Frame the necessary entries to close the partnership books and show the amount of cash received by each partner. Referring to question, frame the necessary entries to open the books of the company and prepare a balance sheet showing the condition of the company at the beginning of its operation. 164 »€S OW I ya of r (notteninsxd Ale ‘> dtiv sonsbiooes ait attiorg yatrede acacia ifs wette .aesy Isoett edt to Bae edt tA .atmenda sgittvrolfot edt ~ode adood edt ,beeote ete atare £20,086 oo ERT ae ie tee Sg ,.03 o+eeeeer Per errrr rr rie reer ey aoe 00c,. f+ ey anes So 90 eet Sr eee BEC. 8L ey sVISC SOF, Ohy “eeeeeaee ere o++ eldavisosr od crt 003.8 ee eRe | 000.3 ” epee eee % a8 eo © *# OH e vee ese ££ @ She, A ‘ 008,23 rr ihaeen a 1 £TS 2 % ; Coes eb eeee se UM ee arweddess ob Qed 29 ert! eh 000 ,OOL CeCe eee eee ee ee eee ee ) oe Mi 000,08 ee ere ee af Ps 000 ,0¢€ CROOK H ODMR HR HERES RD OWS oon _ sera iil editong bebivibas jaeol 3 jttort SOMEEEy «© TONS0ESS “tottus ms ativ ynsqmoo e otsioqroon! non q ent sit seadouyrg bearot oe yrsaqmoo off 000, to Ted tow best 0000885 ,deso odt gatbulomt tom ,fitmboog bas adeces qiderendzsq “beiotdes comedian f eft .weso mt 000,08¢ bas tooee at 000,008, esidsysq «% ot Moore to ofea to abeeoort ont ater Aeso “Ooms Aoote yenom seedomvg edt? ebivib of sola pd abet ” tant he ot foe Latiqso tomrot xrredt of SES gt erobaevy ed? ,onmsled Lattt at mvode deso edt to mo rebyibs ane “atmyooos atodt Yasqmoo edt at ensol as ttbero tlodt o¢ boosla nett Iffv Hy sldsysq efltd efT .Istiqeo anidzow es nismer bas seoternt - te edt to agaivetb ed? eA .arenttaq edt yd belttes ed edt mi aoxrsde svitosqgest thedt o¢ mottroqotg at ton sts @ at moetodt teotestnt sit diivw beagrsdo sie erentisq oft ert low SELG Tame .Col} dq L683 0 rstv .evavome gaivofto: a of as Sy, a, Ay 4 e¥ood qiderentisq edt esolo of esiztne yrsescoon edt | . »tentisg dose yd hevisoet dasa to FAMoOIS | meqo ot aoltitne yrseescsn oft omsert wtottasny me miwore teede soastsed s stsyetq bas yaaquos edge io -Molisreqo agi to aati i sit ts i eh edt to m ‘ dat (i lg Seiad PROBLEM NO, 30. 25 (N.Y. O.P.A. Examination) A firm desires to transfer its property to a corpcration duly organized to carry on the business, The net assets of the firm consist of the following: Mamaeand Guildings, de ieddud dues ens 4 Qa Eee. Oo $150,000 MePChwenehad dn hands «cee en awe anv so +s oe enn? a kia 100, 000 eoecgunts receivable; was +sB80. Hors its Qa ao vars. « . 150,000 Gocdmibl iand patente, . 52.C0I0.. das. veri) = 100 , 000 GHG, PELs a6y ONE OT ea ve DOWN Per see see BRB ee wee kas 50,000 Ttaleew...t ovwe nae Cae ees. eS $550,000 It is proposed to issue in full payment therefor, bonds, pre- ferred stock and common stock aggregating the sum of $500,000, of which each partner is to receive his proportionate share accordin to his interest in the firm, viz; Jones 60%, Brown, 35%, Smith 15%. Prepare opening journal entries for the new company, and a Statement of assets and liabilities, and state what amount of each Class of securities each of the partners should receive. Ref. 10-4 PROBLEM NO. 31. (N.Y. C.P.A. Examination) A, B and C constitute a firm engaged in a manufacturing business, which they have decided to change into a stock company with a capital of $100,000, equally divided into common and pre- ferred stock, par value of each share $100. Each partner is to take stock to the amount of his net investment in the business, on the basis of 75% preferred and 25% common stock and the remaining Shares: authorized are to be offered for sale. On the taking over of the business the books of the company show assets as follows; real estate $35,000, machinery and tools $10,000, merchandise $15,000, material and supplies $8,000, cash $5,000, notes re- ceivaple $3,000, accounts receivable $9,000. The liabilities are notes payable $10,000, accounts payable $5,000, A $25,000, B $20,000, C $15,000. Formulate the necessary entries to close the books of the firm and to open the corporation ledger, 164 7 a ait 1. oe ; a nas \ ¥ hol ' =e fie eae y ae }: , vr i ' ] > ee 4 Py x ms | _ , 4 : i) a 08 .OU MIGORT : ; ae ae: ? (aottsaimexd eA-49 YU). ae << i? ah fii oP goltersqros B of ydreqorq ett tetenert of Betbesb mx!i A ' ay edt to afoess ten efT ,eeontend ety mo bia: ot bestarg1ro yiub é es | | ‘) sgniwollot edt to tatenoo axit 000 ,daLe we ee eae elee deena e Wine laces ake la an Bae Bred 000 ,OOL eee ae cov ew eto ee aw eeene cous ee pbrsh ae sethmedouc:: 000, 0aL j cab dbaewlavas bbeve ¢ees (QSGAUQRURR ER EMO O? DOU oes veda ewww es F cibabascccccey gednossd Bie ELfrsoco 000 ,O¢ . « . were. Treeitere ee ly tf ee ee PPP Sel dek tise kaso? “91g ,shnod ,rotetedt tmemysa Lfiwt ai eveat of beeoqgoug ef IT. to .000,002$ to ma oft amitsgetass Xoota ommoo bas foots betret nibrooonm erare ofenotiroqota atd evieoesr oF at rontis; dose dofdv Pol ctina g@S yavord .RO8 seaot ysiveymrl£t eds at taevetat eld of s& bme gtmeqgmeo won offs rot aotutne ferwrot gatmeqo etaqor doss to ¢apomea tany otate bes ,@ettilidall bas eteasas to #mometeye evieost blyode axrentreq edt to dose setsirusse to easels 2-02 » ton £8 ,OM MaTROMT | (nottamimexd .A.%O .¥. i), gaiiviostunes © mt begegas mit s otuditemoo 0 Sae 7 qf ynagnoo xoot¢a # otal samado ot bobtoeb evan yords dotdr ,cesniand -ot71 baie somnoo otmt bebivib yllewps ,000,00L¢ to Letiqso 2 ati ot sf steontiseq dosd .00f3 esisde dose to ovlavy teq ,#oots box2et © ,cooataud oft mi ¢aomtsevat tom eid to sawous eit ot xoote cast anininmer edt bas xoote mommoo 286 bas bexrrstesy Pat to atesc edt tovo uatist sdt m0 .elea tot Sotetto ed of ers besirodtvs eersde savolfot ep etoags wore yasamoo ent to siood edt easntemd edd to esibnedorem 400001 afoos base yisaidosn “4000 ,289 etetas feo “or sotom ,000,a¢ deso ,000,83 eetiqave bas Ieizegem, ,000,cly oie eoltifidstl eaT 000.88 eldavtgoet atmyocos .000,6% eldevico @ .GOO,.286 A ,000,82 olfdeyaq etawooos ,0CO,0f9 eigeyeq serom “4000 .82%'D°4000,083 sit to aclood edt scold of eotutme yrsecsoem od? efsfurz0ot .tagbel motisroqroo edd meqo o¢ bas mit | — 7 hol ee PROBLEM NO. 33. 26 (N.Y. C.P.A. Examination) A invests $50,000, B $25,000 and C $10,000, as the capital of the firm of A, B&C. The partnership agreement provides that they shall share profits and losses equally. At the end of a business term the balance-sheet shows as follows: ASSETS LIABILITIES Rae, One ty. k.the tk 5 500¢ Notes’ payable, Weeeesy .4% & 10,000 Accounts receivable,. 58,000 Accounts payable,....... 75,000 Mdse. per inventory.. 56,000 Partners capital: Manufacturing *plantpayt@2;000 Ay. eo... ci 7.05a8 $55,000 Various stocks and By, esos yok Gees > B?,500 ponders market iprics / w270000 °C, ....:56. 88 Daa §, 600° 987,500 | ) The business is sold out, the assets realizing $140,000 gross. The expenses of the sale, including commissions, were $5,000. Show the final accounts of the partners. Ref. 7-2 PROBLEM NO. 33. ney OePeA. Examination) A and B, partners in a mercantile business, share profits and losses equally. At the end of five years the partnershop terminates by limitation and the balance sheet shows the follow-—- ing: LIABILITIES ASSETS Oreditors, F..¢.¢.4.: ».--$30,000 Plant and machinery,.... $15,400 Bille payables «. set eens » 10,000, Inventory, centene. ei - Van 36,000 Capital: Accounts receivable..... 38, 000 OS ES ee: $30,000 Cash ist Denes asu pi nseas 5,600 By a Wines mabe 0a 615,000 45,000 &85 , 000 285 000 Subsequently the business as it stands (except cash in bank ) is sold for $30,000. Make final adjustments and closing entires, and show the amount each partner receives. Ref. 4-2 164 o& Letiqes edé es ,000,0L2 9 bas 000,a8% & tadt sebivorg daemecots 8 to Sae edt TA SE OM MUIGORT {nottsnimexad .A.9.9 Yo) | -vilsupe eseaol bas attterq ersde [fede ade .000,088 eteovm A s qtderestrsa od? .9 3 @ gA YO mit odd to Scat sewolfot as avons teede-soneled edt mies seoniand SRITIIIGALS OTTABA 600,0L£ @ Sevamacese SL0S0RG Baotou QOS Be seaes eer erre rer.) 000,27 eeaweee, Sl08¥8q etmyoook 000, 8¢ . ofdevieoet atmyoood _. sfstiqes ereatist 000,5¢ . yrosnaval roq .osdl 000, 22> o ob o eae O00 , ft weal telg aoiavtos ture a 002.7S eee eeevese . woe . " Drs excote evolysV Qe. Fa (OG8.e « eres Se O.vf eertq teazem ts abnaod .eao0rg 000,089 grisifess efeseas oct 000,88 ere ,caoteetmmoo gaibuLort ,erentixreg of? etitorg exede ,ceonkernd gqédersmtrsq edt sresy ovit to bus edt Th . -woffot edt awode tesde sonefead edd bas aottatiall yd estenimred 005.253 600,88 000,88 003,¢ 900,283 (ined ai dase taqsexe) ebasta dit 98 ,setitme grteolo bas etromfar .te Blos et ssemteud odT ,efse edt Io asameqzs ont to sfavocos Isatt edt rode g-7 * tor «80 .OU NMBIGORY (notgsatmsxad .A.9.9 BTasea eee eg tonidosn Sas trsid oe aoe ee dee COST LOSAOVEL .»s«,9idsvisosr etmyoooa ossequtsd ai aed per eftinsorem © at etentreq .f Dae 4 ‘DOO OEE s «ees ree w ee io getOtibeto -¥«i} eyllevps ecaaal ‘oas sgat STITIUIGALs 000, 0L SER ci 0m Brees 090 0&3 ee wee gods tegen 000,c+ O00 «gl tereseneer rad 000.88, aeenterd edt yltnerpsedye ~ - the Lemtt exe .000,0%% xo? ploe ef : cov lsoet tsagrsq dose tnvoms sit wode bas ~ ve a, = aw ‘i Ts * f PROBLEM NO. 34. 27 (Minnesota C.P.A. Examination) The Prosperous Manufacturing Company, a corporation, bide organized July 1, 1914, rith an authorized capital stock of $215,- 000.00, pare value of share - $100.00 each, for the purpose of manufacturing novelties. The five incorporators subscribed and paid for five shares each, organization expenses were incurred to the amount or $5,000-00, and paid for in stock; and the balance of the stock was disposed of on the following conditions; 10% upon Pe ee and three equal calls for the balance at 30, 60, and aays On July 31 the Prosperous Manufacturing Company secured an option for thirty days on the plant of A. & B. for $10,000.00, agreeing to take over the assets exclusive of cash and assuming the liabilities of the partnership as at July 31 for the sum of 4% 200 ,- 000.00, peyabl é $90,000-00 immediately after taking over the busi- ness and the balance in 90 days. At the expiration of the option, the corporation took the plant as agreed. The following is a transcript of A. & B.'s ledger balances as as at July $1, 1914. BAe eee ee 8 ww i O06 OD MetOLee 4g « se tell} 35,000.00 vachinery, « >» ena we 20,000 .00 Furniture and Fixtures PAE Haye Nek: 3000.00 Pe Or rae a eae Ey, ee See 10,000.00 8s eee ect, eee tO ra ae eee 2,500.00 Finished Goods i ig ere re eg sea 10,900.00 Tare Le Proceaa= PeHye Ca, See te 5,000.00 muppues oss Serle we)” ‘ely Fg) 500 Accounts Receivable mM cel aee a a5,,000,00 eae ech 4 eee ee. ee 8,200.00 Mortgage on Buildings Ps aha 10,000.00 Reserve for Depreciations- Machinery By D00.00 Meeerve’ tor “Bad "Dente “eo ye es 1,000.00 Accounts Payable GIT al ety oe ee 15,000.00 RVOP ETS. : ila! Me ae ny 77,880.00 1 OU Por a ar pe Lae ee ey 51,880.00 DDuring the interval A+ ation had sold finisned good cost. The subscriptions to the stock of the sorporation were set on call with the exception that on the second call a subscriber for twenty-five shares notified the corporation that he was unable to complete his agreement, and he was released without further lia- bility. The forfeited stock was solid for cash at par. From the foregoing, draft: (a) Journal entries necessary to close the books of the partnership. (bo) Journal entries necessary to open the books of the corpor- ation and to show all transactions on the Prosperous Manufacturing Company's books, (c) Balance sheet of the Prosperous Manufacturing Company Sept. 1, 1914. be ot with the consent of the corpor=- s for 55,000.00, which was 25% above 164 mise. ba 3 | Ube .O% WEIGORT (nottsaimexd .A+T.9 stoesnal) sav ,maokterogroo 4 evreqmod gritdostumsm ayoxeqsost ent - -,ars> to Aoote fatiqss bostrodtyus as div ePlOr ,f vist bee aes to seoaxug ens rot ,dose 00,00£3 ~ ersia to eutsv exeq 400. bias heditoadve erotetoqrooml ovit eft .,ceitievox on itstos TUI5m ot beravort exevy esamoq%e aortssine3 to eonsied eft bre ;aoote at rot bisg bas .00+-000,8, To sayous end mogy SOL yemotsiomoo uniwoflot sdf mo to bosomekb ssw tocde 99 bas ,08 ,0& ts sometsd sd? rot alf{so Isups seit bos wmotiqiroedye paneer 0° as botsoee yrieaned qnitutos tunel ayoteqgeotd ait L6 vful ot -§ 00.000,0L; 105 -2 & LA to ¢mela edt mo eysb yirtas sot noitqe exit sitmress bas daso to evtayloxe ateees edt revo sist os gricetgs 00s to ma’ ons rok £6 yinl te es qidarons seq eft to eeteifidsetl -taud edt revo maids? retts yietsibommt 00-000,0€) eldsyeq ~00. O00 ~mottqo oft to moissriqxe eft $A .eysh OC it sonsisd edt baie ason .beetgs 88 dasiq edt doot noitearoqgioo edd ag eeoneted segbel 3'.8 S$ .A to tqizoancis 5 at aniwolfot ocT fer fb ylut vs $6 ae | 00.000,.058 3. » jn «(ee 00. 000 ioe . * . a ” ° ** ’ a egntbf ted 06.000 .OS ee eee Mae ta Vrenidosh 00.000 ,.é ; _. ,. pomudxtt Sms exudiocwt 90.000 OL . * * 4 J a * ry Tgeinet al was 00,00E .& ae ae We ey A Cs. ee BR 00.000,0L . ZO ene abood bedatmi® 00.000 ,c Re oe a ae assoord af Atoll! 0. OO % , > + * * * * o* se 82 agifacque 00,000. gee is 8 age eldeyteooh atmsoooaA 00.608 .8 . s ry * * a * « © A net asv 00.600 ,OL ge 6 oe ft) apn tLe ae ogegs roi 00.90¢d,S yipnidosl-anottstostqed tot evresenh 00.000, f ge gt ell ae, Ae tot evxreaef 00.000,¢£ os o vehi e{deysd atmyrooos 00.088 ev * * e * Pee . ‘* hy the) ae : * 00.088,fc¢ ; i ee ee erogroo edt io ¢msemoo edt co iv gel ® oh fevrotat edt gnituCd oyode D2S esw doisdw ,00.000,c, sot aboog pbecakmtt bios bad aoits mo tea orev moitetoqroo sds to Yoote sdt of enottgixoedye oT sol tedirsedyve s {fso broose od? m0 sant moi¢qeoxe sit diiv {Iso . ot ofdscsus ast of ted? moltetoqto9 adt bettitom estede evit-yisort if tedtwt tyodtin Bbeaselet esw oc par ,caomeetge eld etelqmos .tsq ts daso tot bloe eat foote Asttotrot ect > wort + dteth ,getogetet efs no edit to atood edt esofo of yisesooem soften fsmusot (s) ,gitarontieg | «tog109 eft to axtood odt meqo of yrsacsoen estxtns Isnrv0t (cd) asoxeqeord edt mo anottosensut [fs vode ov bas motés. 200d atymeqmo? gaitutos tuash | yaogmod gatxuton'twae avoteqaort oft to teonte gousisd (9) .&f6l ak ofQ9Gi >, | Pr ee | , A ne A Gt 10 ,dose eorede evit sot bing — eteoo PROBLEM NO. 35. 28 (N.Y. C.P.A. Examination) A, chi senior pene: of a firm, dies May 9, at the close the nPorlowing Stane partnership ledger shows ; CEGM We ds ws cosas OMe SOO. Iders eae! wt! Pewee asset oy. SOO. be. Ub sre ne od. tee F pieece A2S0G Webtors Jered. 00. to. ers idcepin 93,766 Trahs ar edstore res. OT. Yrs. oones. ee: § 93,206 Inventory, FONVUAVE IA 5 AOU. aoe. c caitels 13,005 Par cnases, £00, PEPEL TEL OT. bes, eseee a 14,160 BALD s ve. Veewe aes eee. ae oly... Or 19,658 PSPONSED gy « OF < OP Hs Vee Os Oe. OO. Senn 5,213 CApPCAl PH soe oa 8 OOS. Oe oa oO NE. ' 20,000 OGpi Ch2OTEP ee SG. FOR rok s be... Ure.’ 10,900 VarpeGel se Uyer wy «Per Uer. 0eic. oreo a 5,000 PESsOns ee oR eum. 02.06.86. oy 00. cS a 2 soL0 wereqnal s,s Cased. Coe ase, Ourdic. che. tf 750. Personal, CPR OORAM i aes ec eaw ana baacedan 450 9150,17441 $150,174 | The inventory of mdse. stock May 9 is computed at 15, 200, the unexpired insurance at "8149 and accrued expenses at $207. ne divis ion of profits between vartners is as follows: A 57% 3 28%, © 15%. No interest is credited on capital but interest is oredited on A personal $115, and charged to B personal $6.25 and to © personal $3.75. Tne RaRAVE cote agreement provides in case of A'ts death for the sale of A's interest to B and C on the execution of a bond by them in Savar of Ats estate, payable in five yearly instalments, and stipulates that the assests are to be taken at book value, ex- cepting 1/2% reserve for bad debts, in compliance with which pro- vision a reserve of $500 is made. & new firm of B, © and D is formed, in which D invests $5,000 cash for a 1/4 interest in the business. B withdraws 211 in ex- cess of 810,000 and C pays in a sum sufficient to bring his capital up to $5,000. The future profits are to be shared in the following stated proportions, viz: 2 1/3, C 1/4 and D1/4. The new firm executes a vurchase mortgage with bond as provided in favor of A's estate for $20,000, and pays over balance of his interest in cash. Prepare the necessary accounts to give expression to the foregoing liquidation of the firm of A, B and C, and a balance sheet of the firm of B C and D, as at the beginning of their enterprise. Ref. 34-6 ro) © we = Fay TM de : F a 7 ie wh es 8s ae LOU MEAORT | (mottsainexd 21.9.9 o¥eil eselo oft te ,@ Yel eoib yuri s to tendiaq x€ evota segbel qiidexendisqos edt to eonsisd 98 oc0.Is Ceres sgpsle fae 6 Oe HGS Hae Sees , Sov. SS errr yy Teena ees oe ee 308 , ce 3 oh Veen baie ae «050 0 ee Eee a00,. sf error oe ev ee he ee gi yrounst ae O3L . of © die: Sin plea €e + 008 eo oe hee ee ; 4 6a0,6L ils RCA) , * ELS et ata Rae ner iris" ee ees isthe 000,06 eee weet ew me rs eeer ee eewwgr gt BULGE ~~. 000 OL > abe Las —ebees O40 he Gee lst tqed in 000,¢2 + ainance hed a>» 0 ee eiidoig ee geist tqsd... 4 i 0) te ee UE ee Se ae édnEKE men cle 0 40's ogc genORine ; ; ; hey ee eewnereeaen ‘em 6 0b * 40m 6 2 wngie ,ienoeret as A Poa oy Och Terry rrr. ee ee ~LsmoeTtsT arb Obt2 ST £.08Ly | | h .008 .aL% te betuqmoo et © ysl doove .9ehm to yrosaevat oAT TOS? ¢s soameqxe bertoos bos CSL2 te sonstweal bextyxeny oct <8 A sawolfot es et erentisg meewied et¢itorg to motetvis ecT teoretat gud Istiqso mo betibere et teetetat of fel 0 .%ec 2 a&.80 tsnoareq & of Bbogisdo bas ,allG femoeteq A mo Lettiexrs et +c%.83 Lexoexsg 0 of ae tOo1 ddseb stA to caso mai ashivorg stnemectas Gideteatieq sit ¥d Dbaod 6s to moltsosexe odd mo D bons A ot testedat até to olsa ort. .einomistent yfueoy ovit of eldsyaq .sisiee efA to tovet mi wed? “xo ,Sutsv dood ts mexet od of ors ateaes oft tent estefucite bas -o1q doldw dé¢iv eonsifgmos at ,atdeb bed rot eviseer P8\l sritges | ,ebem ai 0028 to evrsest s motety 000,¢c, eteoval d dotdy at ,Semrot at Cd bac 0 48 to mitt wen “xe sf Ife ewexbdtivn & ,seontesd oft mi sastotat s\f a 3 fstiqes eid gnird ot smotottiwe me s mt eysc D bre 000,0f% $ gitiwoffot eft at hetrsda od ot ots attitozc otic? edt s000,E° oF qu mtit wen eff .3\L Cd bas a\f£ 0 ,S\f I rstv ,emottreqem botsta s'A to covel mt hSebtverq as baod dtinv osenttom seedouue = astvooxe pom 3 -feso at teeretnt atd to sonelsd tevo ays bas 000,08, 10t etstas — edt of moteeetcxe evis of e¢nuooee vrecesoen edd otecsrT ar. eomsisd 8 bas ,0 bus @ .A to maf? edt to nottebhiupti anfiogerol - tied? to gnoinniged edt ts es «i bas 0G to mr£t end to jepin ters , ay at na ber PROBLEM NO. 36. 39 (Illinois G.P.A. Examination) John Jones, William Brown, and Alexander White are partners in a business, their respective interests in the profits of the business being five-tenths, four-tenths, and one-tenth. The partners agree that Mr. Jones* son be taken into the business aS art January 1, 1916, on the understanding that White's interest in the business be increased to 12%, which increased Snares is now considered to be applicable to the four previous years, wnile the shares of Mr. Jones and Mr. Brown are to be 40% end 39% respectively, and Mr. Jones son is to be given 9% interest in the profits of the business. It is further agreed that the value of the goodwill of the business, amounting to 50,000.00, be set up on the books. This amount is to be divided between Mr. Jones and lir. Brown in proportion to their Original interests in the profits. Mr. Jones is to transfer the sum of {6,000.00 to his son's credit, which will be in addition to the sum to be allowed him out of profits of previous years. The profits divided during the four years to December 31, 1915, were as follows:- Peter. Gs 6 4 8 est ses Sees. 030,00 NE i re | ae Ses: es Pe) jeg tro Sea UM aaa ae ae 514 eee bs, 000.00 1915 . ; Seep h est aE! 2 \ 4.) 5 eer O00 oO wt90,030.00 The balances at credit of the capital accounts at December ol, 1915, were? John Jones . ° 2 ¢ e ~ e . e ry « e a 340,310.00 Pisses BOW ff ee el Se a 6 6 cele 185,112.00 Bieeamaer WOLtG « os wos ew 6 we . 21,809.00 $ 437,231.00 Prepare a detailed statement showing the balances at credit of the various partners on January 1, 1916, after giving effect to the provisions of the new partnership agreement as above indicated. Ignore any question we AnEGEeECs 164 (nottsatmaxd .A.T.0 abomt£it) erent3isg ots soidW xrebosxelA bane mod mekiriy | ‘edt to etfiorg edt ni ocaerasal oe ithe it x ex? .dtasd. 2@ @ & 6) 8. €o #. & 2° eee « * * rer ; 00.000 i - * * * * * * & * 7 > * ss e * a * ° arer : OC. O56 Malods ww tedmece( ts atayooor Letiqso edt to tibeto Fs eoomeisd ect fete ,arcr ,Lé eo «ee t 8 & & Beno miol » - *# arrotd msi cfiy + + + « StiSW teomexsla 00.L88, 08) 3 | tibero ¢s seonefad sit Aare: tremessta Befisteb s staqer? toetts gitvig tofts ,afel «fl yrsvast ao aremtisq apotasv sd? to evodr ee tnemsetas qidatentiaq wen sdt to enotaivorg oft of | etaststat to molttseup yrs stromal .betsolfbat ~ Saf PROBLEM NO. 37. ; 50 (N.Y. C.P.A. Examination) A and B have carried on business as equal partners for five years at an average yearly profit of about $3,000. At the end of that time they invite © to purchase 1/3 of their joint interest for cash, he to pay therefor an amount equal to 1/3 of the capital in the business December 31, 1896, as shown by the balance sheet of that date. This balance sheet, which is given below, is handed to you with a request that you will report to C whether or not the capital in the business is as stated, and if in your opinion the investment is a safe and judicious one for him to make. Give a brief report in accordance with this request. BALANCE SHEET, DECEMBER 31, 1896 ASSETS Buildings, plant and machinery at values as Originally taken “over in 1891,.+6.6.66. . $65,300 Add: expended since in repairs and renewals 123,600 § 77,900 C@CCWLil and tEAde MATES sy cscs ssc veesnisdseee es mean 25,000 Books debts as taken from ledger, .....0.s ess. ee we 43,350 inventory, raw materials and finished goods at cost, 23,200 Investments: Linton Mill Co., 700 shares at their book value, viz, 40 cents on the dollar,......... $28, 000 Ada: five years interest thereon at 6%. 8,400 36,400 Partners! accounts: re OR A ee ere ar ee ee ere 3 3,400 Ba eee ee core eo ere eee eofre@eseeereaeese goer ee ves 4,100 7,500 Cash incharttkipe. bees a. oc@us tate dhe Pete eds its OKs a , 23,150 4854, 500 LIABILITIES Mortgage, <..1..0s. Hee UE a ae le et Pere Pere ee Y 85,000 Bills payable, ..csssccaes Cab Vises cpien ee ees oo eee eee 150, 000 ACCOUNTS PAYADLE, see ceeenneneees dive. tie: mi oie (eeseabebasss 32,500 Partners! capital, ...se...«.. pan Aas rere, cree Ve Re ee ef 000 $334,500 7 nt a " os | 0& We RRS ogc earaont (nottsntasxd rhe T.9 Py 9 ae ie a evil rot exeattsq isups es seontsyd mo. beitreo eved & bref to Bas ent SA .o, dyods to ¢itorq ylusey sgeteve os te atse tot faervotat tatol at: tiodt to €\f£ eesdousq of 9. stivet yeds emtt tod mi [e¢taso edt to é\f of Laups sayoms as roteteds vag o¢ of .deso to tesde sonsiad odd yd ovode es ,dC8Lf ,f6 redmsosd seexteud eft ot bobasd at ,woled nevig et doftdw ,Jeede ‘sonelad etd? .etsb ted oft tom to tedtede 0 ot t10oget ftliw voy tat teeupex 8 diiw soy edi aotaiqe wyvoy al ti bue ,betete es ef seentend eft at Letiqno 8 avif ~— ot mid xot ono asolofbert bas etse s ef tasaseovat - -daeupst ‘eidd diiwv somebrooos. af dxoget sini gest ,L8 ATAMIOR .PTINe Totadag “Por eTaacs , os esu lay ts yrecisiogn base tasiq voanibl tue | 005,23) «...ee0+-,fO8L mk tovo meds? ylisateiso O08, TF ¢ O03,S£ alevenet bas erisqer at conte bebmegxe :bbA co) hl Lt ne vet pesusecneeccsecescsg@atam @bSzt Sue [Itwbood Og .8h Sine sushi shames > caeenee mort qedet as agdeh axood 008 7&8 .te00 ts aboog Secdaltatt bas elst¢sisa wet ,yrotreval rednentaeral wise dood wledt te eotade OOF .09 ILfM motaid 000 .889 ceases, tellob edt fo etaso 08 ,siv 008,56 008.8 “9 ts moored? teoredak areoy Ovii :DbA ‘ tegmyooor 'sarentreT 008 ° pares at STU eRe n eee e nena eae ames seeeeeeeeeegh : WE® , as SOT eee ee eee OOH eEHTHH ACHR See HT OOS | Ocl.S3. ** Fewer eee ee ee eaeve ee a Raa ir Mateo ak dazd— 004 , S583 € SSITIIIGALs y | 900,dc& a “sree Bs sce 09.0'6 Me «hie w emie ble pills 5°6 aha nl a “ey *s eee eoe ees reenter eet ae efflid JOC —S 000, TS ee ee ee ee ee 008. bEay | LL S a ee ee a EYST étauvoooad j a -ihnae fetontted EE «tefl { PROBLEM NO. 38. 31 (N.Y. C.P.A. Examination) A, Band C were partners in business for several years. A Gied December 31, 1903. The articles of copartnership provided that on any change in the firm the soodwill should be taken into account and its value divided - one-half to A and one-quarter each nen and C. The balance sheet at the date of A's death was as Oliore: ASSETS a ne et Me Ge thy. x «oc. 4k 1,500 Merchandise on hand,....... end ae +68 8 +6, ee oe 123,000 Sunary notes and accounts receivable,....... 15,000 28,500 LIABILITIES Sundry accounts payable,...... RP Pe § 8,500 Afs Net anvectinent, »...s.. ere ye Ge So x ohn? 10,000 B's " Ce ts eke oe es ss Fe ae ee 5,000 . Cts n eee Pe at tee << see 5, 900 228, 500 In January, 1904, B and C arranged with D to come into the firn with $5, 000. the goodwill is, by agreement, to be valued at <5,000, The new firm, consiting of B, C and D, takes over the business and coodwill in equal shares, subject to an allowance of B-1,' 28. on the notes and accounts receivable. I+ pays the estate of. 9,000, with the understanding that the balance due A's estate shall remain as a ioan at the rate of 5% interest. Prepare the balance sheet and the capital accounts of B, © and Das they should appear at the beginning of the new business, writing off the purchase of goodwill in equal proportions to amount of capital invested. Ref. 17-3 ree ” ee t 4 Z ; re : % ae A’ .ersey Lerevee 107 asentend at ereatreg Siero» bobiverg qideresdzsqo> to sefottas edt ,cOCL fe 12 otal metat ed biyode ILiwboog eds azit edt af sgmsae yor. ines xatiemp-ero bis A ot tied-emo ~ bebivib ayfsv est bas as sew dteed eth to ofeb ont t8 teede gonsisd off 50 eraeen A . ; . : ° Pigte : ¥s 00d, f Ww wale. e 65 Wie eet eae ciie o «6&9 46 Oo 0 a RE feed ‘ 000.SE sapien say memunaunes +> ¢eerumerge get basce el | -«+ eidsvisost atmyocoe a8 sstom YTOANe ie 4 ** © @ ouITmgIgald ae 006.8 He ee ene ee atayodos yrbawe 4 600, OL ®eeteaererente pers seaaenseeser sOSaS OVA PSH BOE a o)- * oar 8 : 000, Wreerene | Tee ee te 7 . e002 BE 00 eG See Peer ey fe hie ¥ std | | | Recat ae ey | edt otat emoo ot 0 atin begaesis 0 dns a ,eoer PY Sag geet ts borlev od of ,vtomeetgs yo ,el {Lirboor ed? . 000,24. at fe ns ed? revo ealst 4d bas 2 .@ to yatttemoo .malt won edt 00 : to eonewolls me of toetdve ,~sercie [aupes ni chinten ae agentes otstes eat aysqy tI .etdsvisoss eéawoo0s bus eeton edt xo 7o 47 etetes e'A oub sonsisd adt sade gitbasdetebry eds dtiv ,000,c. . a Shovotat Re tovcter edt $2 me6k # a6 Bhnxos S18 D .& to atmwooos Istiqso edt has seeds sonsied edt ersqest | yncontend wer edt to gakaniged ent ts ssoqqgn biuode yedt sé a Snr tovome of eaolttxroqgeTa Laupe ai ILiwboog to sasdouud edt BBs pind >: io oad | .boteevat Iatiqss to | \ ah des i a ee SOL , fa Se Pil con RM oo : ‘“t + ar wy agers, J t beg ¥ as ¢ i RE tee r yi ia L] k ae ‘ nm) ? ¢ A ? wae, a4 ne ¥ ee DO PROBLEM NO. 39. (N.Y. C.P.A. Examination) Smith & Jones are partners, drawing equal amounts for services ni sharing profits according to capital invested, after allowing “0 ON Capital. They require additional capital and arrange to admit the manager to the firm, he to acquire a:one quarter interest ii the business, According to the balance sheet Smith has $12,000 and Jones $6,000 invested, and good-will is valued at $6,000. What Sum must the manager contribute? How will the rartnership , accounts appear after payment into the firm of the new capital? How will profits be divided in the future? Show accounts in skeleton forn. Ref. 16—4 PROBLEM NO. 40. (N.Y. C.P.A. Examination) Henry "hite has been engaged at a salary of $40 a month to take charge of the branch storé of James Hawkins in Lynbrook. The following are the assevs and liabilities of the branch store on the day White assumes charge: cash $275, merchandise on hand $3,990, notes receivable $180, accounts payable $340, notes payable $210. At the end of 15 months “hite offers to purchase one-half interest ia the branch store and to pay therefor a sum equal to 50% ol Havkins's net capital as shown by the books. From the following facts make wp a profit and loss account and a statement showing (a Havkins‘s net profit, (b) Hawkins's net capital, (c) amount to be paid by White to Hawkins: Mdse. bought 33,450, insurance paid $162.50, expenses paid 5135, rent paid $300, mds. sold $5,905, value of furniture on hand 790, mdse. inventory ©3.245, salary paid to White ¢500, accounts receivable due $475, notes receivable $325, due creditors on open account $375, due on notes $390, interest paid $12.50, interest received $10, value of unexpired insurance rrémiums 955, with- drawals by Hawkins during period 4200. 5 164 a Se on horns 1 ‘* 7 / ' 0/0 ee ‘ \ j : Pi a i‘ AP 9 * 86 om Uae | (noitasinex® ALTO | . | asoiviss zo% atayous fsvoe gaiwerh .etom eu e ot & dtiad , we : : | gaivoltis wetipigpedosvat stigqes of Satbroom e in peenee ee of snaetts Bae Lad tice femortiibe ertupet YSat «+8 fyeo Ao as oo vestotut asfiaup emo 2 otiupose of od warit edt oF SMS | . 000,e1, est mPime goede sonmalsd edt of gribxo 990A ot $ Bis ef3- 415 ~ tad? .000,88 #a Bowlev st ILteeboog bas .bsveovms” ‘gendt bre © zidotemite; edt [Liv woH Yetudizsmoo Tegsaee + toy mw Clotbygo wen ot to act? sdf otal Tnompss yodte. ¥ at etmyocos vol? Texte? edt at bebivib ed 40d .0% UBSAON | | er a (mottomtaex? .As%.0 -¥-1) | ) rye ot dtmom 2: 0S2 to ytefee 2 fe bogepme mead asd ettd” yxuasH oT .xoondiryd st omtawsH eemet to exote dusetd edt to eqxredo ede? edd ao Spore doucid eat to eottiLideil bas sveeas oc? ers gasro{tot Ae ,0G@,0¢ Bbued ao catbnodorea ,6Toe tose renrcde souvees etid Yee 1 ta .OL83 efdeysy setom ,0b¢3 aldsyed atmrooos ,Odl eldevieos? BOFO : ? farmeno socdowa of exretto otid’ edemoa Bf to Dae edt TA AP Po2 of LIevps mye ¢ rotecedt qaq ot bas exote doneta ody wr foetosik girvor Lat eit mozt .axeed edt yo svode ea. Iotiqse tea perder Se (5) 3a horde fosnetetea £ bas, Przo8 SL: eeol bas. séi0s7. a qn vist Btogt | od ef tavoms (co) ,Ladiaeo gea o'eatsral (d) gbkoxy fox erative z ine a {BA LRMEC k ot etid’ yd Dior Stsy sosmoqae ,08-S80L) bisq soaeteent 4 ye. tds: basd mo oxgtiamwt to emfev ,208,.a Bloe .ah otmiooos ,OOd> etid? of bis yrslss .chS.c ¥ aeqe mo erotibeto ob .ést, eldsvieoss aetor ash? sesuetat ,0&.af% biay teeretet .0CG2 estoa a9 ~ditiv .40) aaukaéty soneayoat beriqzeay to sulew ,O2; «008 boizeq patud eataven ql CA PROBLEM NO. 41. (N.Y. C.P.A. Examination) S and T began business August 1, 1899, § investing $8,000 and T $5,000, gains and losses to be shared equally and no interest allowed on investments or charged on withdrawals. The firm dis- ‘Solved May 1, 1900. The books had been kept in a haphazard fashion but the partners agreed to the following statement which was sub- mitted for settlement: net debit of S $3,100; net credit to T $3,500; cash on hand $3,400; 10 shares bank stock (market value $1,100); expense debit $5,100; profit and loss debit $3,000, credit S500. The bank holds the firm's note for $8,000 on which there -is accrued interest $60. | ; Prepare a statement showing the settlement of the partnership ral ie Ne ead el on Dustin ae dc ba gas ye PROBLEM NO. 42. EN .Y, GlBeA) Examination) The firm of X & Z began business on January 1, 1915, the terms of the partnership contract specifying that no interest was to be credited on investments or charged on withdrawals and all profits or losses were to be shared equally. xX invested $24,000 and Z $15,000. On November 30, 1917, the partnership was dissolved and, as the books had not been properly kept, the following statement was Submitted to the partners as a basis for settlement and agreed to by them: cash $14,300; net debit of X $6,300; expenses $15,300; net credit of Z $10,500; profit and loss debit $9,000; credit $1,500; real estate having an estimated market value of $3,300; the bank holds firms six months' 6% note for $10,000, due January o., 2916, 1918, on which interest is unpaid. Z liquidated the assets and liabilities and in due course sold the real estate for $4,000 and paid off the note when due. Prepare the partners! accounts as of November 30, 1917, and as of the close of liquidation, and a balance sheet as of November 20 act « so 7 <2) Ot disable | be (woissmimext A809, - Tt a ae | Real 4 aes @ ,S68l qt teuguA ea: af —. 1} yifeupe boreda od of esaaol na ts} 4 | f salemexhadd fr Pie aise 20. | adbe As vor al treastada, gatwollot oa ‘od bos hs ; T Of #ibers ton ,00L,88 2 - tideb Yom :3nom by oufav foxrem) footea taed astedea OL ;00} see “lease 2 : a fibers ,COO,c5 sideb asol bas tftora :00L. at dideh. jks. reqre (00. i & eradd dotie no 000,88 10% ston a’mxit edt eblod anad ~ 6600Ce 7 By teetetat & ak Gidexroasicy odd head tremelttos ‘odd gatwode tnometeta #8 eee | sk | saxtt edt to atistts a a ee } ; 7 a, ‘oy ae eu Ride bi (nottankmext .A,4.9. aon AM RSA eure? oft arer (£ yxevast ao soonloud noged 5 ae mat eT ” ad of saw teevetal om dads gatyilocege toatiaod Giderentiag eddy ie a atitowq Ife bas alewsshdtiw go boateds x0 ataoneeov ot hotel bask ; S bas 000,382 sais eis Mi pet Lacem Pe: od OF 4 , “ie 86 _bis peviosath es shateiis10% eit » : . wer kay PROBLEM NO. 43. (N.Y. C.P.A. Examination) Three partners contribute capital as follows: xX $90,000, Y $45,000, Z $15,000. They share pEOT ne in the proportion Gps 50%, Y 30%, Z 20%, X's salary is $5,000, Y's salary is $3,000, ‘Z's salary is é5° 000. At the end Of their fiscal period Zs dies. The books are closed and the net assets ascertained to be $153, 500. X and Y liquidate the firm's affairs and distribute the surplus assets quarterly as follows: POS Wh) cL agee Caiman bedes A aneryini oa i ae | | ee ar ? ae; Dil, et =! _ > - © -y a . enh ok 0 eet ee 36 PROBLEM NO, 45. (From Examination Given by American Institute of Accountants) hip Bs a C were in partnership, A's capital being 390, 000. 00, Bts $50,000.00, and Cts $50,000.00. Their agree- ment 18 tO share “profite in the follows ng ratio: A, 60%; B, 15%; c, 254%. During the year C withdrew $10,000.00. Net losses on the business during the year were $15,000.00 and it is decided to close out the business. It is uncertain how much the assets will ultimately yield altho none of them is known to be bad. he partners therefore mutually agree that as the assets are liquidated, distribution of cash on hand shail be made monthly in such a manner to avoid, so far as feasible, the possibility of paying to one partner cash which he might later have to repay to another. Collections are made as follows: May, $15,000.00; June, $13,000.00; July, $52,000.00. after this no more can be collected. Show the partners! accounts, in-~- dicating how the cash is distribvtecd in each instalment, the essential feature in the distribution being to observe the ESC ee ment given above. PROBLEM NO, 46. (N.Y. O,P.A. Examination) A partnership on equal terms between A and B is dissolved July 1, 1897, the books on that date showing the following: | A’s capital paid in was $516,000, and his drawings were 7S» 500; B's capital raid in wae AB | 000, and his drawings were ay 500. Goods purchased “50,000; gales $40,000; business expenses 1,800. A loss of $1,600 was made on a $5, 090 consignment of | zoods to ,viverpool. In the settlement A agrees to pay B an old | debt of $3,500. Prepare requisite accounts, and show final balance payable by one Partner to tne other. Het, tC 164 as stutitent arotrswA yd sevid aoltentmex® ao7t) . Batted Lsttaeo ath sUiderons row 0 bas -eorgs sled? .00.000,00% a") bas O8y BTA 4 ¢ etpde ot « -00.000,0L7 woxbridiw O zsey oct gatued .228 .0 ger ey — bas 00.000,2L3 e1ev ts0y odd gritub asonland eff no eee3 wod mistrooay ot #2 .eeentend edt tuo saolo o¢ bobt 3A .O% MTTaONF (wottentnex? .4.9,9 .¥y%) i lane ; bevloeeth ef 7 bne A aoerted eatet Lesps mo qtderoad t0¢ aX: | ‘ie ‘yaiwolflot edt ankwords stsh tad? ao edood edd ,SOBL ol Cit eter oysiveth etd bas (000 ,aL2 asv at bleq Ietiqeo etA Si9W ayaivarh eld ,000,8° eav at bkley fetiaco e't eth ean S9ST9IXe Beeniawd {000,0h) eels 000,082 cuug shoo) .00a.f) Gonmsicd Lett wode bas ,etavooos ettetupsr eraqet? .008,56 td to tnomagtaaos. 000.89 2 x0 ebas: sew 008,f4 to se0f A. blo ss @ ye, OF eestgs A tacmelitee edt al .fooquevad of v5 POR, | ; 37 JOINT VENTURES AND. CONSIGNMENTS PROBLEM NO. 47. (N.Y. O.P.A. Examination) A, B and C agree to purchase and sell coffee for their joint account. They purchase 3,000 bags of coffee for $58,500, and one month thereafter sell the same at 16 cents per 1b., (say 130 lbs. to the bag). The warehouse charges, labor, cartage, weighing, brokerage, etc. amount to $600. en eG eee fe ees ks kos ace bs bc 4 eae &20,000.00 B contributes note at 4 mont the,.. 219,000.00 3 Discount et 6% Oh gameyvs.......- ? ? Sy ae oP $18,900.00 C contributes | note at 3 months,.. $ 3,500.00 Discount at 6% on same,....cseees ? ? . ? 759,982.50 It was arranged that each snould contribute equally to the requisite purchase money, in default of which, interest at 6% per annum for the month covering the transaction was to. be caleulated between them, to equalize their respective contributions. Prepare an account of the venture; also separate accounts of A, B and C, showing the share of each in the final net proceeds. 164 amtmmo tenon (uA € ey Nh Ot wmagoat ie, | (ao ttemsmex® 40.49 B a , a stot tot esttoo Lies Sees sescorug 7s 80 ono 002, 823 zot oert to vane 000,8 TO Tey Y: 7 edt Ont oe) edt soq otneo Of de couse ort 2,0" tor . Sgalta ter Ogal TsO bh Geutsdo eavodeter edt .{ ged. Ve +0089" ot dooms _ ., i 2 38 PROBLEM NO. 48. (N.Y. O.P.A. Examination) A of New York, B of Chicago, and C of San Francisco enter into an agreement to buy and sell for joint account, each to receive 1% on his purchases and 3% on his sales, as commission, and to share equally in the net profits, usual interest at 6% (360 days to the year) to accrue on all values after due date. March 1 A buys goods amounting to $3,989.50 and consigns same to B, who renders account sales for $4,656, net proceeds cue spril PBs March 15 B buys goods amounting to $5,050 and sells same, rendering account sales to A and ©, net proceeds $4,365, due May 20. | April 1, © buys goods amounting to $6,080 and consigns half each A and B. A renders account sales for £3,783, net proceeds due July 1, to each, Band C.. 8B renders acccunt sales for $3,813, net proceeds due June 10, to eaoh; A and C. Above purchases include 1% commission, and the net proceeds are the gross amount of sales, less the 3% commission, selling oharges, etc, - Frame the necessary journal entries and prepare the accounts of A, B and C, as these accounts ‘vould appear on the ledger of A, BtOr ats PROBLEM NO. 49. (Hy, OPAL Examination } A and B buy merchandise to the amount of &4,000, A contri- buting 2,500 and B £1,500. They sell to C a 1/3 interest in the business. for 3,000... How much of the ¢3,000 will A and B receive, respectively, in order to make A, B and 0 equally interested? Ref. 6-3 26L8,8¢ wot aelee tr-scoos srobier @ 40 BRB @ qilose of , edit a teorotat a\r 2°90 ot LIfee 8é ue one re 4 BS sOW N oe es 2 . : ¥ a a. A vat a a astne goetoner? mee to 0 ogsoldd to ‘to sect | ot dose genet piggy Tot dine iiee" aaa x ae Bay a Sey aelse a no ® ee t enotat feves ,atttoage gen ade coandart 8 prs oun tes todts soulsv LL8 mo sryrroos o¢ (ase i$ eagiemon bas 08.cse,é4 of gate og awd abeaserd toa 4820, ry rot sates ; asmee alles bas 020.8} ‘oe oiineiie igsodl ayod = eub ,880, 2 abecoorg tem .o hind ot eels tru Sled simeeobe bra od 0.82 0 entseean theo baie 8) if iy ebhseoorty ven ,: Eg¢ Se st Oy le £8 sovo ‘arebaet A” o0 bie A gdose ot sOL awh enh abadteee: ter | absésoxry Pen ort brie ofaasuumoo RI ebslomt seasidotry evodA 7 eailies .molasinmos ‘Re ed aael ai to, iiiiead esomy edt ots a Pesan A fy (gots saegtedo : a einvooos edt ereqery Bas adtatns Lentuot yrasasson & odd emett Bees) \ to tegbeft edt no Docabek ey Bison ei anooos ssedt as 4D Bae «At seh Rees eb S42 ie to @ ; | ee , i Ae) ly tas tot fh Ott WHIGONT st SUM ie 0 be : ied (mottsatmex? .A,9.5 Yo) 2 eae Ee Pee ay -tutmoo A .000,33 to stnvome ond use 9 thacdoxem wad @ Soe A. eagle 008 ,£> & bare OOdy | ,9vieoe: G baer A LIie ye 8) edt to ‘dower: wou 2000.80 20%. as ihotasiegmt yllauvpe 9 bas @ ,A oulsm o¢ tebro at fev. f STB9L i: (8 . tof oh 39 PROBLEM NO. 50. (N.Y. C.P.A. Examination) For the purpose of making a joint speculation, A contri-. butes $3,000, B (38,000 and ¢ $1,000, and they agree to share the. profit. or loss in proportion te the amounts contributed. October’ 15, 1900, A deposited the $6,000 with his broker, giving in- structions to buy 300 shares New York Central and S500 shares Chicago, Burlington & Quincy. The order was executed October 16, 1900, New York ete at 130-5/8 and Chicago, Burlington & Quincy at 127. April 10, 1901, the stocks were sold as follows: ' New york“ Central at 151-1/4, Chicago, Burlington & Quincy at io1-1/2. Sef received a check from his broker to close the account. State how much A owes to B and C for their respective in- terests in the deal, and prepare the account as rendered by the broker, calculating interest at 6% (365 days to the yeas), commission at 1/8% and revenue tax at [2 for each 100 shares. Ref. 10-5 PROBLEM NO. 5l. (N.Y. C.P.A. Examination) Blackman & CO. of New York agree with Thittaker & CO. to ship on joint account a car load of goods on ,consignment to Seattle. The invoice price of the goods is $4,000 less 5%. Blackman & Oo. pay the hauling, insurance and freight charges amounting to $300 and give ta Whittaker & Co., March 1, 1905, a sight draft on the consignees for $3,000 as part payment for the goods. On May 1, 1905, Blackman & Co. receive an account sales from the consignees and their check for $6,000 as the net pro- ceeds of the consignment. They then pay Whittaker & CO. the balance due them. Interest is calculated at 6%. Prepare joint consignment account and the account to be rendered by Blackman & CO. to Whittaker & C0. Ref. 20-5 164 208 .O" MIIGORT a ey (noitsaimesa .A.4.9 ‘v.09 ~futaoo A ,molttafvosas éntot s gaidsn to | to" - odd | ef eotgs you? ne , 2 9 Bae 000, & Be cesed “gedodo0 ,betuditinos siayous eat of pe sy Se 20 72 werk ts setord sid dtiw 000,84 odt ef 8 i bas Lergaed AxOY wet eoxade OOS | u : | ~ 9 -eyomsag & a fastacd A10T well .00CL . OL tedotoO betyoexe aév a oo “Saf ts youts® & modgatlwa ,ogsctdd bas 8 I ts | - deo¥ wot ' rewollot es blos eze” sioote ont toes OL £8 A .8\lef@L gs youtyd % motgrifiue sogeotdd ,o\f ts 299. ' : tavoooe edt evolo ot tedtord aid moxt dooeds s bev = «tk oviseeqse: sled ¢ tot 9 Bas & OF gewo A doum wod asst? eft yd betebnet as tayooos eit otseqety bos ,feeb edt at ategtot — (easy edt of eysb 805) %8 ts pas ol slyolso ,r9xord .betade OOL dose sot G&) te xed sumevSt DM 8 £2 .0M MTIAONT (rotftemtmegt .A.T.0 .¥.M) | of .00 & cedeasid? dé'tw eorgs xx0¥ wel 20.00 3 mendosla of tnemmgiaroo so aboon te bsol aso & dmyools tatot mo “Ra gael 000,80 ef Bhoog edt to solaq eotovat oct .oltts: Pr tdgtett bas eoneweat ,gatived edt wi. 4 e ,@0er ,f doyall ,.00 & tevettidT of ovis das ot eit tot taemysg fxeq ae 000,8> sot sper tecne eat m0 asatosl=d .@0ef ,f x eelse tmyooos ae evicoet - eM a0 sie fit hee edt to ebeso 4 ; cont fen od? as 000,3¢ sot soodo tied? bas seeng oft .00 & xexeteia’ yer asd? yedT .#@aenmgteanoe 28 te betslyolso ef testesal .modt oub a ed of tayocse edd bas tnyooos taommgtenco tai sae | 3 .00 & sexettidy of “BO panied baet | 8-08 . ten 40 PROBLEM NO. 52. (N.Y. C.P.A. Examination) On April 30, 1911, St. John & Co. and Carpel Bros. enter into a joint venture agreement. They each contribute $4,000 with which they pay for goods that are shipped on May 1 to John Doe of San Francisco. St. John & Co. advance $400 to defray freight and incidental expenses. John Doe, the consignee, is alloved 10% on the cost of the goods and is to sell them at whatever price he can obtain for them. On June 1, 1918, on the strength of a report sent by wire, Carpel Bros. draw at sight on John Doe for $4,000 to the order of Carl Peter Gt New York, On July 1; 319138 us eyohn''& Co. ‘receive from the consignee a check for 311,200, all the goods being sold; on the same day St. John & Co, settle with Carpel Bros. Interest at 6% is allowed on all the transactions affecting the partners in the venture. Prepare all the ledger accounts brought about by the above, on the books of St. John & Co., including a joint venture account. (Construct your ledger accounts in such a manner that they will explain fully what took place, and make a cross reference possible.) Part see PROBLEM NO. 53. (N.Y. C.PA. Examination) X and Y purchase an invoice of coffee for $128,000. X con- tributes £7,500, and Y, 34,500. They sell Z one-third interest in the venture for °6,000. How much of the $6,000 should X and Y receive, respectively, in order to make X, Y, and Z equally interested? Ref. 37-5 164 Of ph cee » We +82 .OU MEIGORT (note satmext net ° .¥.") is Pides a | tote ont bas .00 & nob #2 <£f@t ,06" bigs a 000, d¢ sind dose yer \, drenpergs owiney sabof ¢ ofa not of £ ff becaids ers ted? se tot yea yors doide dt iv yetied of CODG eonsvbs .00 B aot .« @ ,ocatonar? t et 4® giagoo eit .90C afoot ,esensoxs Ietaebiont for tdgierd ts modt Ifee ot ai base eboog ed? to ta0o ed? mo moat rot niside 169 of. eotig revetedw ,oriw yd tne troqe & to dtanerte edt ao ,&lel Pm ext a0 to tebro edt oF 000,50 70% 900 adol mo tigte ts weth .eo18 Loqrsd evisoor .0O & mfol .¢2 sfer ve pone od ~duoY stn ho vag rad to ed s senmmtenoo edd mort” ihioa gated ahoog od7r Ife ,008,f1 veoustal .@eTd fered dtiw sittoo -09. $ ado .t8 yeb omse odd mo apr! ot palroo the enoltosansts odd cfs a0 hewollse ei #38 ts soTNs NOV ouiy’ at evods edt yd twovsh tdgyord atmsoobs nontet ‘eas {fs stsqerT . tiweoos Siuinev tniot s gatbhulomt ,..oD & adel .#8 to exeod edd am ifiw yed? ted? rennsm s dove mt etmyoccs regbel awoy towttenod " g0metete: caoto s salam brs ooelg doot teri awe be rere eldtesoq SES . test -€& .O% MEIAORT. (xoltsmimezd 2Aq. ° ade “109 X +000, af 20% sgttos to sotovat as eesio: ce a bas x taerotat bilidt-eno 3 flee ysdt. s00d%ds YT: bas Oa TS: satbdi ste X bivodse 000.89 edd to dotm wok +000,9°% xot erstiev edt mt yifeups § bas a .X stem ot tebto mt (Viovisosgest evisoot Y | | gr | @-¥E . tof bat oh aa 41 PROBLEM NO. 54. (N.Y. O.P.A. Examination) Plant & Company and Edwards & Company ship merchandise to South America on joint account. Edwards & Company gave Plant gc Company 1,200 in cash and their acceptances at six months for “3,000, Plant & Company were to rrovide balance of cash required, 40 manage the venture and to receive a commission of 2% on amount of invoice for merchandise. Profits to be divided equally. Plant & Company paid Smith & Greer for merchandise $5,000, and discounted Ed-ards & Company's acceptances for $3,000, at 3% discount. Plant & Company prepaid freight ({420, insurance $60. In due time Plant & Company received from South America an account sales for merchandise and a draft for the net proceeds, payable ~ in London for °3,200, out of which Plant & Company Foes woo O00 to -Tevires 01205 ToT that amount. Later Plant & Company received a draft for (3,100, being balance of proceeds of sale of merchandise. The joint account with Edwards & Company was closed and a check for the balance due. them was paid to Edwards & Company. Prepare a statement shoving details of the joint account, also a statement of Edwards & Company's account. Ref. 39-4 164 PUR a ear EOE ty A eg Page ae ee ee ao sy y i ; i) f Wing v bi ne ac’ - A, nee fe, 7 a * i wae ae ob ae " “(notte 8.9.0 a i: es oe f 9 fo soncled ebtvory oF sazoan 29 8 “Yo motasiamoo B evieoet teupe bobivib ed. ot atftor 40005 — ‘gu bbnssioron rot treet qb9T: pet. #6 ts ,000,823 so¥ coonstqecos a ynsqao i | 08 sonsmvent ,0G)) Fdglest bieqesg me” taucoos ap sotuemA dtvod mort bevisoss 4 ou ag abosoorg tem edd tot & ee Btag yasqn0d A taal sae Bn bed ,,00L, &: sot ttarb ees ne: Fae 1900 | dmyo0d0n -¢. abot ent ‘.setbas . pi ; eu Latins oa ‘tot tego, ry bat ioe eae } vtavooos tatot edt to efteteb gakvore ininabicee 8 exes .tavoooe atyneqmod & abrewba to Genre: de 8 oBis ; Bat) ee a ‘Lae? ol 78 2 iP M f te 4 ; y | #7 he So hy | } / Fi Pe . > 7 . | : i aa ow vv « ed Lo) at a oo & ve van / wih : Dosins é vf Hy ole ch Apia nba ant PROBLEM NO. 55. (N.Y. C.P.A. Examination) | Bowling, Green & Co, of New York, consign goods to A and B in Havana Cuba, rendering with each shipment a pro forma invoice in which the goods are charged at prices in excess of the cost, the cost of freight, insurance, etc, being added. Accounts sales are received from time to time, the net proceeds eae remitted by drafts. : Show how the following transactions would appear in Bowling, Green & Co.'s. ledger; & Shipment of goods Jan. 1, 1908, and invoice rendered to A & B of Havana, for $9,850, as follows: eee o's sv ane ea do es $9,000 PLOVEHG, 0 oe ee ale owls o wlelele bots ol ee ein walle s 700 eG yer ces Gc! a oi ke aie 8 0's et 150 IO ae eta yw attcve’'s yk Naa a &9 ,850 The cost of these goods was $8,700. b Account sales received Mar. 15, 19038, for part of the consignment, shoved gross proceeds $5,400, less dock and other expenses, including commission, eypOs) This account was accompanied by a 60 day draft for ¢5,350. c Account sales received June 16, 1902, for palance of the consignment, showed gross proceeds 75,660, less dock — and other expenses, including commission, $175, and was accompanied by a 90 day draft for $5,485. Ref. 14-6 154 edt hy 20t .S00CL «ct. toob sesf ,003 24 ebseoozg wee 4 «tofcetmmoos gaibyfoa 088,85 tot tisrh ysb 08 s ela ~08f¢ edt to ooneled tot ,SOer at oon Sovieoex as M90b ea@el .033,8a5 shosogng 820 .folsainmoo “G88 (ay t01 Le sbind bas ,evTi? ot boxebaes | town? bas sawolflot es 10288 111 se Ss het eS gale ir i } Hf % " 1 ae , SS oN Sa .00%,82 ea" aboog ee i$ Yo taco tan bovtoges sofas tnt Seorode ,jnemry ton <80BrEqxe | sons: . xd belasqmonos sew A cal caf ie ¢ _ooorogte tad J i) a on “£9: a a sh 08 a eey » ye Le ly ae - - ety ; 7 7 7 ny) one ' as vi i he My r ? ib, a a ie ree ee | ae ae & ie anne 7 uw : ~ a PROBLEM NO. 56. (N.Y. ©O,P.A. Examination) Jones & Co. consign to Smith & Co. to be sold for their account 5,000 bushels of potatoes. The consignees pay freight end cartage (200, and make sales as follows: 1,000 bu. @ 75¢ a bu. 1,000 b" @76¢da ®, 1,000 " @74¢q 1 1,000 5 @77¢ " 1,000 " @ 80¢ " A charge of 5% commission is made on the sales and the check for balance is sent with account sales. Show ledger accounts in books of consignor and consignee. Ref. 18-6 PROBLEM NO. 57. (N.Y. C.P.A. Examination) December 1, 1905, a New York merchant ships goods of the value of $5,000 on consignment to a commission merchant at Rio de Janeiro, insuring them in the Atlantic Mutual against loss or damage in transit and prepaying freight and insurance amounting to $350. On arrival the goods are found to be in a partially damaged condition and the loss is adjusted at $1,000, the certificate for which the consignee transmits. to the consignor together with an account sales for $3,000 dated March 1, 1906, and a final account sales for £2,000 dated April 1, 1906. A draft on New York for $4,300 accompanied this final account, being being the balance due after deducting duty paid commission earned. Give expression to these transactions on the books of the consignor. . 164 giritevomn somsiyent bas tigiert paiyeqderg bua tlensz? at bee .a8 .ON MEIGOMY eee (mottemtmsxd .A-9.9 Yo) © stodd sot boa od of .0D & dtime oF agivmoo «1 _ tigtest ¥sq sgengisnoo off -ssotstog to eledord 900, sau | ‘ewollot en sefse eatem bas ,00S; egediso sud 6 ket © sat 006 Fae 5% 8 YON 8d OORT Tae oe: go BIR © OOO L etree oe BYE O © O00, D5 " hos @ * COCYE 9 Oee ie : - . a edt bas celfsa odt mo obsm at motsetmuoo ¥¢ to egrado A , .oolss tivooos dtiv tnos et oonelsd 16% tooo -99natemoo bre somplenog to axood at atmrooce. tepbel wode- a GeBL . tof 32 .OM MAIaOTT ‘ (nottemtmexd .AsT.D Kell) ie 3 ) aA edt to aboor sqide ¢acdotom xx0¥ rel s ,@0€L .I sedmsoot ~2 off ¢s ¢nedotem foteatmmoo 2 of teeumgtemoo mo 000,c3 to ovfsv 8 9 aaol tentens L[eutul oitmalvA edt af mod? roan ai oxtsmet sb £ } epsash 10 ins i ylisttiey © xt ed ot bmyot ers sbhoog edt Laviaua nO 0888 es ae edt ,000,5%3 ts beteustbs at seol odd bas mottibaeo b wis ie romlenoo od¢ ot adtaaner? comgtanoo ect dotde tot otsoli eg ee .bOGL ,f dows betsh 000,é3 sot selse tayooos as atin nedtegod. A .«00CL ,I LiteA betsb 000,82 sot sefsa ¢myooos fentt s hme = i tod ,dmroooe Inmtt etdt detasqmooos OOE,42 tot Ax0¥ wow go ttexb 3 -postso mofeatmmos bie ytub gattowbeb reste eub somefed edt gated Sal 44 PROBLEM NO. 58. (N.Y. C.P.A. Bxamination) 2ps) tO. Bon’ cone ignment, under date GE April 4; uer= to the value of $1,500, paying $15 cartage and $6 in- ceives the consignment April 20, paying freight [70 and Cartare ole..’ \He segue te disposes of the mechandis e by sales as follows: April 30, 400; May 30; $800; June’ 30,° $600, on which latter he pays storage Charges $30. He charces commissions on sales ye credits net interest at 6% and transmits account Sales with remittance of net proceeds to A, who receives them gouty 10. Prepare shipment account as preparing on A*ts ledger and con- Signment account as appearing on B's ledger. Ref. 235-5 PROBLEM NO. 59. (MiY. OC. Pye Pxenin yee Y under uu Es X paying Tes. 50 cavtaeel baa a2 ine Bursrnce Y received 6 goods on August 20, paying freight ¢ 175 and cartage moO. He sold the merchandise as follows: August 30, S1,000; Septeuber 30, “$3 000; October 30, $1,500; on which latter he paid storage charges $75. Y charged 5% commission on sales and credited net interest at 6%. He forwarded an account sales With remittance of net proceeds to X, who received them November LO, Prepare shipment accounts as appearing on X's ledger and con- sienment accounts as appsaring on Y's ledger. Ref. 40-6 164 8S; OM AIEOTT a hist hes . A (no ttemtaset ALTO oS . ay i ee: “#191, ih LETGA - eteh bay “Gant =ctd ay: ‘bas. suaiuaaa elo ma a beg bre one sdgtor? ; anived 40S thaaa idence and ott esl, eoLga, ud eetbass foow oct to seeoqels yitmeupe iy ogerrve iro 008g gOd ont 003 402 ysl! pOOD Oe ‘tieele tavoltos eno kes kawoo eonzedo oH "08 eegtaio omotote eveq gy eters dimooos atimensst bas 3 de teoyetnt tea atibeto: selss medy esevisoos of” ,A» ee: pera og 36 consttinen ditw / wm00 bas tepbef c'A no Seattle. as. ee pene rages? | uf stegbol atg 40 petssoqis as tayeons. “re -— | | en @ OF meee in Y (solitsatasxt ee q.0) an) of OGT,Ec.te i sph es tbnedororn to dro teaos. a: srt ats wht art bas ogstuse O¢,%E9 palysq.% Wee re 5 as oo he ay te diaiext Areee «08 teugyA 10 abooy edt "pavten a ¢ & doretrA savolfot es cakbaedoronm edt hLoe OH <9! ftaf dokdw no s00d.£8 406. tadoto0 4000.59 (08 cod rane aolee go nolcokmaoo &G, .begisdo Y, «839 asaters onexed notes tuyooos ae hebtewiot oH sade teotetat ten & isevoltl meds bevieoer oat .X of abseoorg toa te 8 i bre 1 ahes, atX go antieeqqa. ef adruoooe snboehaed pees | steghel af ¥. no ciahuadh oes 88 2 soe Seay pee y A5 PROBLEM NO. 60. (N.Y. C.P.A. Examination) The X Company of New York City decide to start Archer and Brown, two trusted employees, in business in Buffalo, N.Y. under she firm name of Archer and Brown. The X Company shipped a consignment of merchandise to the new firm on January 1, 1914, On January 1, 1915, Archer and Brown mailed a trial balance of their affairs £0 the X Company to reconcile their mutual accounts. TRIAL BALANCE OF ARCHER & BROYN JANUARY 1, 1915 Account receivable,..... © 37,963 X Company,a«.s. wen EXPGNGGh gs tenes ma keoumas 8,840 Sales account, nei nb: Remittance account,...... 60,000 DALanGepwe ess «- 91,8%2 SSR A Re Arata WT OE ae Cone 8 “18,070 Archerperiea-s ss ms 4,000 Brovilesesnenr én ‘ 4,000 &124,8738 $124,872 TAUONTO WS, a wisixigois «xo s 4-5 > 18,780. Furnish the required statement. Ref. 46-4 164 odd ot seibasdorem to ta i “gedosA .2lef 4f yrevast 20 % ods ot outs yee rt ig to net t yrat f Re i cyaees es gemeqcd 2. 36.8 G ee gen ,iavooos asfeg 096,98 cine + sir crs, a oevw ee nee ,socelsd a! : ve vot a ie ret ¢ : NG iiig'na + 0 0os Re kOROEE Ov0.8f weer ec es eee g TOTS . ; a” ee oy 4) 7 f cot “1088, an % mae ; + air ; iy y ; in Se a Goes og Rie : tu 4 ye » van ie-y ‘ Sheen | aS. ry, 4 , | +> (ie eee a oh A000. 06 Pen Bes . ao naebbw en poe eer hs AC ee le POGOUNDS: PECEL VAD Leesan. ies se sas > Stee eee OU Pems t tance (SOCOun iss vee sen ss a os + sty) eo alee OO te OOM Dy aA LIST STG COM DAT. 920 2.sp veces ere 250, 000.00 SBR) a Ee rn cman 6, 000,00 TE TT DA enn EE rer rears 5,500.00 Bt CRON EOL Diy eee eee eee os Taye OD Pee er PL ag GPa wise. pede she nim sunte bo ‘ » yep aes Oa $266,954.55 $266,954.55 ——— PEMetia PSS TOY, MRM occ 6 inv vee oye vchisse wakes $107,500 Ref . 46-4 bas mab’ mM w 00.000, oom c) ee. eat or | pm | ee 4.509 338 9 ater engi re oe noLth extybo00 we apbA. gctdoustonk 20 lig gnil ett to Bae ont 2A STHYOTY ghbedetaxw? of er eo wwe : ‘ ik ' 60. OoO8 at we . OO »O9O quae .? 60.003. 58 | 45 * 00 ; OO 3 a o "* BO. 00d ao cist ac 7 f ‘* O8t * + = Kos Tate) ae. 60,8086 anya rasa * * > Sy t+ Sees af . *e@evre ee oe? eet awr * (motte mimexd Ae90 ¥ tw ee xt sathasdor om ovis 3 oo ta fLid aubarromen & £8 fee rot kid od tH90 valet vasirafee 000 ,8¢ ylt sons ted Intat, sairol ole tad: edd mort oc et el a ae «ecw en qbOOREY, f dc we 68 ba eee -~¢ , +, bidavigost | sae ve eRODOS 95) ‘py .casqnod dna melta e iy Baa: as, » ak oa ele ee vheteevecrsewecer eens s (HGS eevee ge liotg has yrotne eae at -++,e0lse ao $22 as a 7 J Ta ae i, Md , i a 1 F i EB wa ‘ ¥ b 7 “Many PAD a Lar 7 a ris nee le a ; ; z ee | o a] ae #8 ms ‘ | ad * Sa Pot ie NI PROBLEM NO. 62. (Ohio C. P. A. Examination) The following is a preclosing trial balance as at December $1, 1913, prepared from the ledger of Messrs. Joseph & Johnson, commission merchants: Debits . Credits Bo B.cvoserh = Papitar faeeamnt. “> 29 °sRmi ee a -§ 50,000.00 Ge De sohnaon “Capi tai’ Aecount: “3° [@~ feeieige eahs, BD 7,000 .00 vag ee os Ss a eres... fk POR Oemem . Pb1 588.10.” Customers . » « BLSStaeeeu 195,625.30 Buckeye Worsted Mills Consignnent Sales 215,720.60 215,720-60 Freignt ch ake Mk r= s aarti od - ee : 18,652.70 10,562.60 COMERS oases) eee Eee kt sarees eon, Get Baie. UG Discount Allowed . ; Li SonwraD ey: | Buckeye Worsted Mills Current “Account 50,000.00 62,988.41 General Expenses . . rye ke 10,000.00 Buckeye Worsted Mills Advances oe sale BOG ae 120,803.53 Totals . « . . «+. $1.008,454.60 $1,008,454.60 The bookkeeper is seriously i11, and the firm of C. P. & A. (by whom you are employed as a senior accountant} has been re-= quested to prepare from this data - without an audit of the books - a balance sheet, and to determine what the profits or losses for the year have been. Mz. Johnson, one of the partners, brought this trial baiance to the office, and furnished the following additional facts: The firm started business January 1, 1913, with a cash capital of $100,000.00, of which each partner contributed one-half. The firm does business with the Buckeye Woretey Mills, under a contract whereby it handles, on consignment, the product of the Buckeye Worsted Mills ee ele a The contract provides for an advance to the mills of 70% of the billed value upon shipment of the goods from the mills. All sales are made at an advance of 25% over billing price of the milis, and Bett iemen cs for sales are made with the mills montaly, less a 10% commission, iess freight and cartage on the goods solid, and less the advances made on the goods sold. The shipments made during the year amounted, at bill- ing price of the mills, to $389,632.00. Your principal also furnishes you with the following ex- pianations concerning the operation of two of the accounts shown on the trial balance: 164 ry OM aIEORE ” (qottoatnext ak T 0 oHtON ssdiaineel a8 és: 5, gone fed retat aateolestT 8 RS s “aaah ,eTsso TO aun edt nor? uae ptided Sia i ROT | | suieuee fatiged ea 50.000, 02 hi + . -* 8 * . * e 00,000 ,0¢ By, Sie »tms0908 fstiasd ~ mosan * ef. gat, [8s ae, “eft eet See we Mae i 4 oe a Oe.aga.eer 09.05T,cf6 « . eremotes “a of. 08% 215 08. 0S" 2f5 gore thelmstaace Sree botero ev Ce HS. sat. ol OF.£00 (BE ee | Oe agr gts bre os tox? a 60.872, £8 A.) ee ee -enotoe tamed a | . vy Sv. 208s * bovolls tneooetd ” f3.88¢,80 00, 000,08 © * genfo00A nomi @trht pct gyotoul = 8 = | Phan OO. COR We More ue anegxad fereneD | y oa. 808 0S OL. 28%, 608 Baty ray geomevbh elt int "poser svesoud 4 08. 23, 800. L8 Od, b68, 1b 800 fe - ae, - atatot ae Ad WED: To ek ent bas ae iowotgae at be sega a ao peyolgs ror) Sa ig wor meed acd (tassmy0008 soinee 6 ms fwodtiv - steb tds tek 3 sages oP De ee “petaeu ~»W etood edt To tiouve ony tore gatuxreteb ot bre tie rot aongol 10 ef hiotq se pied 200 Teey eg sonelad Istad atdd ddguord watoadisg edt "(ei eat ee ‘gtost Lenotstbbhs gainollot eat bode haart bas ,eottto edt oF {sticeo deao 8 ad bw ,orer ,f yxavast eoonteud betists- — eat, » tiad-onmo potud bud 90 soatxed ose pia to « k . ee xebru ,elfin . betero? eysioud ext ao ent Xo soubor erid tromagianoo fo as rot asbiverg soatd00 gat to taemyide moqu outsv. pelfiid ent 20 tas to gonev be ne $6 obem ore aeise oe ete aolas tot adaomelst oe 58 tdgtett aeoel rotee Eanmoo SOL 8 abet saat co ebei esonmarhs edt neel fae tse: aflid ts ,bedmvons ta9y dt Borde2. nolsot odt atin yoy aed. mode Bfarooos edz to ont to molse’ 48 Buckeye Worsted Mills - Consignment Sales This account is credited with sales and debited with the monthly settlements. Freight and Cartage The debits in this account measure the freight and cartage paid on shipments made to the firm, and the credits measure the deductions for freight and cartage made in the settlements with the mills; You ars ssked to submit: (a) Ledger accounts exhibiting in summary form the entries for. the year's transactions, each entry in the several ledger accounts cross--indexed by nuvber so as to identify the Same with the contra debit or credit in another ledger account. (db) A statement of the profits or losses. ) A balence gheet as at December 31. (d) The value of the consigned goods unsold at the billing price of the mills. 164 —2o ess ‘jie gefet dmomrgionod - efTtn botetol | a a4 - ~~ 1s PROBLEM NO. 60. (N.Y, oC.P. As Examination) John Does, a manufacturer's agent who starts in business th & cash capital of $15,000, receives from the manufacturer wit $45,0C0 worth of goods on consignment, subject to a discount of 5% when he pays for the goods. Doe pays freight amou iInting to $1,400 and allows claims for damaged goods amounting to oi. 500, the total of which is charge- able to the manufacturer. He sells all of the consigned Zhe for.a total of $60,000 and receives $44,000 from his customers allowing them in settlement of the accounts S400 discount and (000 for defective goods. He makes the following payments: $2,100 for*freight, of which $1, 400 is chargeable to. the manufacturer as noted above, and {900 for expenses; he also pays the manufacturer $37,950. Prepare account of sales to be rendered to the manufacturer, Siaee aihanken. statement of profit and loss and statement of Capital account. Ref. 48-6 164 ro} “og eado eboog bony rowotaua aid ott 000,80 eevteoet dro 000,08") 70 && + aeeniega at atisie. odv JOP ‘e’zetutos than 4g wavotostumen oft mort sovisoes ,0CO,2af¢ t6 Is ae me Javoesth oC atntrong. s edd to tnreuefites af mpd? ant om 0 + aS ae ie obs " yom “Fre TOWPORIVAAM OCT OF BSetoDNs 5 | : ji i MEIGORT oay ridertmexd sh a ter favoogth e of tooeftdrya i catrmtfangs fo aboon ~ aay | | »phooy eft 1OT eyeq © fo evotis bas 0b, fo og ged gayoms déotext ayer ai dotdr to fstot edt ,00G.[U oF nattavoms exntunoo edt to [fe elfse sti SSIs OL Dye | eret Fa] be fadmemyad anivol ‘Lot edt sexan oH ,sbooe evitoeitsh 10%. DOe, it of -doegmane af 008 £9 Gotcer to ,tdgiout tot OO. ge) ‘exe rot OOEGY Drts. _ gavods botanm as yorrsos ues - oe ee : | . 4068.1 Bi texuion tess edt li < od of aofas to truoose StAgevT io #Memodcte ban eaol baa tiierq to Parewedess steals: soaatad E f otrairg fe FIGs CORPORATION ACCOUNTING 50 PROBLEM NO. 64, (TLlinotes(O¢ oP: AY Examination. ) A. J. Andrews has conducted a retail business for three years. His profits have been $7,000.00 for 1913, $8,000.00 for 1914, and $10,000.00 for 1915 before charging any salary for his own services. In order to obtain the capital needed to purchase the new fixtures necessary in a new store which he proposes to lease, and also to increase his stock of merchandise, he decides to incorporate on December 31, 1915, for $50,000,00 and to sell part of the capital stock. C. F. Martin agrees to purchase $20,000.00 of the stock at par and to pay for it immediately. It is also agreed that in the new corporation Andrews ts to be allowed credit for goodwill equal to the sum of hia profits for the past three years after deduct- ing an annual salary of $4,000.00. Draft the journal entries necessary to adapt Andrews! books for use as the books of the corporation, and prepare a balance sheet showing the conditions as completed. Andrews presents the following list of assets and liabilities which Martin accevts as correct: ASSETS Furniture and Fixtures: Book value, $6,000.00; worth, 54,000.00 ; Merchandise: Market value, $20, 000.00, cost, $18,000.00 Accounts Radeivable : Book value 36, 500, OU, . Collectable, 96,000. 00 Cash, 5400.00 LIABILITIE Trade Crecitors: $8,900.00 Bank Loans: $1,500. 360 164 (08s serbmsxe oA Pa: | Pe) : . n condtt tot epontest! [tate s betoubroo pom wets ‘to? 00,.000,8¢ ,cLe@L tot 00,000, 0% reed evad et itor ati te% arise vie gotaredo etoted é£ef sot 00.000,0. onadiried o¢ bebosn isiiqeo edt mtatdo o¢ tebio at .eeolve . ot soeogorg ed doltdw otote wen a ml yiserecem eetwexit wen os webioeh onl ,eetbnecdorem To Yoote eld eesetont o¢ oels bas ,eesel f{se ot bas 00,000,08¢ to? bsp éE todneoeT mo pins amon al o¢ 19028 Depicted.) 9 eid to vate iL te gootk: eft to 00.000, ose esueeaie ot esety, neal a) ee od at teat beowa3 oels et $I .¥leteatbeomt + gives yeq ot Sts t8q | faso9 [Liwbooa tol sibetos Hbewolls ed of si ewerthaA moktetoqio® wom 8 | ~torbeb setts exsoy eeudt tesq ot tot atitox; ein to ove oft of =| -00.000,23 te viel BE feunne as gat elood ‘ewer tqeabs ot vtseneoon ‘pebitae Larcwrot oft Pisa somafed 5 sxeqoiq bas ,moktstogtoo eft to adood of! 23 een “ot -betefqmoo es anoksibmod oft gniwote toore— cotstifidert bre etoaes to tefl antwollotr oct. etnoces? ewe tina stoent0o 28 ita cessing attra este . OTasea :00. 000.8% ou fev wood Lcomtaet rar erurd beet : 06,000, 45 eisitow i . / 00.000, Sf£% .teon .00.000,088 ,enrfasv te:! :selhnenortel (val) .00,0046 98 ~sulsy Nool :ofdavleser staene = 00,000,862 ,sfdetoel [od | Ce | eqITIIgali | 00,000 8 “rerodibor) ebsxt 8 008, fy iemsod naa a a 7 , F ts, ae | % ty 7 > ; : - Cay Tsay owe ere Pe Says ep: PROBLEM NO. 65 SL (N.Y... (G.PSA. BxOhinetion) A buys a gas business at receiver's sale, taking over the entire plant, sub ject to a bonded indebtedness of 9,500. A sells the same to the B Gas company, incorporated under the laws of the State of New York for the purpose of acquiring this property from him, and having an authorized capital of $30,000, divided into 300 shares of $100 each. C, D and E fabeoribe each for one share of the capital stock of the company, and the company pur- chases the property from A for 297 shares and assumes the bonded indebtedness stated. On mal cing and apvraising an inventory of the property for the purpose of distribution to proper accounts, the following conservative values, exclusive of good will, franchise rights, etc.,, are ascertained: DUO RAS eae aed a bola st as 2 aes se oo He Ate ae oe ee COU ROO Buildings.....-...... pe ee ital dts? wa cece <9 ee a Aa 6,000.00 Coal-gas plant, machinery and A Pete tag Pe eee, 3,800.00 Watere-gas pliant, machinery and fittings....e...-.0, 6,000.00 DE MAELS cis ie 8 Caen * dick note eae ia € pd 4, in © ee ad 27,000.00 ERE C Ad ene 1 A EY A? oo td OOo & Se ORS Bat 1,900.00 Ps LOG e Aas OA Pai ia Pe 8 eee a ee hen ke RLS 1,500.00 Office furniture and fix PU DB ais ss e's o's ae eee 500.00 AVI 9 Mie D9 PNG ct Mee AL a ee a Per eS ee 1,200.00 $49,000.00 Frame the necessary entries to open the company's books and ahow the capital stock and the rixed assets on the face of the ledger. Prepare @ balance sheet, 164 20 .OH MATEO a iy Pt) (nobtantmaxt AS.0 bis a ony i8v9 as bras at seybeoott ts neortt auc gay 6 nffee A .008,.0:: to seonbotdohnt bebnod s of toot 20 ewal. etd soba Sotstogtoont ,ymaqmoo & Ss vtrecetq afd aabrtipos *o Seogtug ‘edt tot ano Fehivib .000,05) to Iattqass ign ean ee na aniver aro tot one edixoedve FT brie qc i986 OOLL to” atig yonqmos oft Has ,ynaqmos fay to sloote | esti behnod off senutess. baa eottara he) 02 A mort ean - peeedo | etude . oe xrbesd “a , ‘sot vtvoqotq ods to ytotaevat ae antetoiggs Brie ae : os aatwoflot ert .etnvodon teqotq o “gotducdPaterb edd ae weteigicn eektonast ,{i tw boos to Ae patent ,eoulav ara eins , : ben istieses ore Sede ae? a) fine bs - 00.000,8 ae Ra » 00.000 ,a.. ck en oo 6.6 cook bse.e ties e 8 dk ae aa eth 00.008, 5 weccccccceeee®Qntdsit Sue ytontdoam .dasiq esg~-[200 00.900,9 eoosccesescetmtrgas One ven trfoast asiq eagetotaW a 00.000, %8 - en ene Fe } 00.006, £ ceresnes neransna snitdNs - eaa a aacee! ; 00 .0O8.f ih as a. ae ee eee ee a earns elic 00.00 Sa bp ee acl eiemee ane aera a: Bis etust ; view: 6:0 09 Sakis oy ade ee 6! i eteons 00,000,254 errs | rea ae Oe Shiv eee a eood a'vneqnoa oft meqo oF pein yinesees ert omenl %o 9ont of* so etoses hexlt ont bane Yoote Latiqes edt wode Sas . teeta consied s Sisqers »toubel ert, _ Eel ten 00, 008 Lf see +e eee SOL PROBLEM NO. 66. Oa (N.Ye. °C. POAP Bremination) A company having assets consisting of real estate $50,000, plant and machinery STBs 000, book debts 636,000, stock on hand $42,000 and iiabdilities consisting of bile payable $16,000, transfers its entire business January 1yfl896, toned joint stock Ce. for $75,000 in bonds, $75,000 in preferred stock and £75,000 in common stock. Male the necessary opening entries for the above, and show how the ledger accounts would stand. PROBLEM NO. 6%. ' (N,¥. C.P.A. Examination) A corporation is organized. to conduct a manufacturing busi- ness with a declared capital of $2,000,000, divided into 50, 000 shared (Gf athe tparvvaituenof S100, of which: 15,000 shares or $1,500,000 shall be preferred stock and 5,000 shares or $500,000 eommon stock. The corporation purposes to issue $500, 000 in con- solidated mortgage bonds to be used toward the purchase of sundry properties.. Tne amount of capital with which the corporation bite tee business is 350,000, being the proceéds of Beer teh one for 500 shares preferred stock. To carry out the purposes of said corporation, the real 6state water power, machinery, goodwill, ete of certain existing porpocecions have been purchased at an appraised valuation of Oe 000,000, viz. Diamond m'f'g Co. $200,000, Surela mit 2) 26, 4300, 000, Champion m'f'gs co. $500,000 American m'f'g co. $600,000, Aetna mt Pl p co. $400,000, and in payment full paid stock and bonds have been issued at par on a basis of 60% in preferred stock, 20% in common stoc*: and 20% in bonds. Material and supplies are to be paid for in cash when their value is determined. Formulate the entry necessary to open the books of the new corporation. Ref. 5a) j~ © oS 000,088 stateo inot fo Monte .000,c brent } Mpocse Piss. HOO. oY ,evode ond tol selutne snimego, piseeogea eid ela .Moose momuco | Saate bisow etnvosos segbel ez it word wole Dis YO 404, MAIEORT . ; , f uM \ (cottaatmaxd 4A.%s0 . -¥eil) tyutortunent @ JovSaos OF bes Esgro ei pitta: Soy A | tat Hebivth ,000,000,8% to Ladtqss beteloeb s {Ziv neon > pocere 000,aL dotdw to .00L Fe episy taq ord to eoren To 29tnrie 900,0 bas Asove DOTIOIITG od ffsrle 000.008 , £2 i. NO,0025 sueet od eeeogiwd aolgstoR ies eit. .voo¢e, roamoo ; sta 30 oeacotve oft Stawot bees od ox >prtod snagtioc: Setahifos P, noktaxogteo aly dotdw div {etigss to sauons oni 6» -eetatogotg tdqitsadiue to aboasotg oft anted . 006 , G5 et esertesd weatsod loode Dorrteteaq esters O08 Ot sx adt ,aoktaroqtos bisa 10 aseogtig ond F170 WHEELS om tigizxe mtaties to ove ,fitwhoog .yYorninoan _ tered soso oTPJaAs ro MobteuIeav hookestqgs me os horcsr Ontang seed ever 2B: Okt st ogteD 09°23 ¥ rf A ar thnk ct OOO ~O0S : co mM, t ¥ +! my Aor ied eniv e900, 090 «om 000.0089 soo gy t's neolt ari 300.0082, oo wt! or oko mat fe 000, 008% hos Noote Sina {Lot Yaerryeq at Has (000,008) .09 8 tat in SotoA hatretese nt 800 to ateancd # mo 18q Js S°vest MS9C eved ebaad ~ahotod ni 20S bra voote momago af vOS pNoode ’ ’ + codw “eno ak tot blaq ed oF ots estiqqve brs. Isivorel / “sbeaiinnateb ek eniiae 7 = to exvfood eds aneqo oF yteeneosa YusTS eth etaLumio% 4 HOO ~ ot eS eee tarot wea “pote potreteta at 000,cT¢ \ebaod - » i wnragioo i” + > atdeb: steed ,000,8Ty) ¥ Gal 2 Pi Bre tusig Gati bas 000,934 oJ state satst 900.4% so" Ze) aritdebonoe atesse eldevec, eiitd Youanttatenoo eeltiii¢ { ,f yiaunsl esenteud on toes :; se , m sor eS. Ov Ove 4 morte rowieo {+o * 198 sae ery ae Tie ote eM PROBLEM NO. 68 53 (N.Y. OLPLAy Bkeetiiaeoion) Tre Domestic manufacturing company, organized with a capital stock of (35,000,000, one-half preferred stock and one-half common svock, sells five shares of common stock at par for cash. . It issues to Jonn Jones $1,500,000 preferred stock and Sl, O00 ,000 . common stock in consideration of the assignment by him of certain patents, rights and contracts. Later, Jones agrees to surrender ror valuable consideration to the treasurer of the Domestic mfg. Co. $1,000,000 common stock and 500,000 preferred stock. Still later, Jones agrees with the Domestic mfg. VOe tO Surrender tale 000, OOC preferred stock and to take ‘in lieu thereof $1,000,000. common stock. Jones makes ea further agreement with the Domestic - Mie. CO vo Celiver to 1% all the stock in the Blank meg. | COe, aopraisec at $350,000, and to pay the Domestic mfg. co. ties 000, for which he is to receive 500,000 in preferred stock “of. 4 Domestic mfe. CO. Illustrate by journal entries the necessary accounts to. be opened on the books of the Domestic mfg. co. to show each step — taken in the forégoing agreement. Ref. Yel. 164 conten, 8 os pos tnagto _yersegino a aa ie no bas sioote ervexet4 ae aes ar re ‘cot taq 38 sigods aramanrog. 40 AIG ban wWoote berte kom.’ 900, ' nbedeo to “eid yd ta sohnetime of 2995S genol eat atm ot¢eemod ods Cfise .foose Hera tOnd . rm stteenod sobhrotitie oF 200 3 000, 600,12 toerecds? pert al saat of aed ‘alo | ee:tam eoriolL “pidaemod ett atiw tanomeotgs qostut. & 4200 +3 atm wee lS ent mf soote ett, {Ls tir of yey “000. Oafe .o0 eB otgeemod ent ved ot bas ,000, ertt 20 bat Harte Teg | od 900 evieoot oF & £ edi dotsw: tot P Wnbatitts’ Toole ,0o + ae q , od me etnoo0s vergeeoood ory sotnsce faqrge : | -t18ri9® BOL PROBLEM NO. 69. 54 (N.Y. C.PeA. Examination) Charles and Robert Wilson are copartners in a manufacturing business, trading under the firm name of Wilson Brus. Following is a statement of the firm's financial condition December 31, 1900: Real estate and buildings $165,000 Notes payable..% 4,000 © Machinery and fixtures... 39,000 2,000 $ 6,000 Horses, trucks and harness 4,500 Accounts A payables s «scm L0,000 PEVORGS owe oe a +e 2 alee s wae 1,500 10,000 Stocks and matériais...... 20,000 10, 000 Notes and loans receiva- 4,000 54,000 ee ee eee DAG Y » wa se ee Seg eee 3,000 Charles Wilson (capital)150,000 ABQPUNT SURE tsi VROle...0..- 15,000 : _ Robert Wilson i 60,000 $250 , 000 3250, 000 A joint stock company under the corporate title cf Wilson & . Wilson, incorporated, is organized with a capital of ¢ 8300, COO, of which $60,000 is 8h cumulative preferred stock ara: 240, 000 common stock (both $100 par value) to acauire and conduct the business of ‘lilson Bros. Charles and Robert Vilson and Henry Miller each subscribe for $10,000 of common stock. The company votes to acquire the interest of Charles and Robert Wilscn in tne bvsiness,-reel estate, plant, outs itanding accounts etc. of Wilson Bros. and to assume the firm' s indebtedness of $40,000, in consideration cf the sum of $210,000, and to vay therefor 2,100 shares of the common steck of the corperation, 1,500 shares to be issued in the name of Charies Wilson and 600 shares in the name of Robert Wilson. The company votes to place a mortgage on its real estate and plant for $50,000 to secure an issue of p02 000 first mortgage 5% gold bonds of the Cencmination of 51,000 each. The creditors subscribe for preferred stock to the amount Cf 50% cf the amcunts due tc them and take bonds at par for thésaremaincer, fake all entries for the foregcing transactions in the order of their occurrence, giving the details to be found in ledgers and all svbsiciary books of account and record. Ref. 11-6 164 ) vos Pai ee 308 OH MEIBORT a ey (nordocckrieest ATs oh Xe ghttwdoetenew @ me etendtaqoo 618 se gaiwof Coy 9956 Moel iy to simec. me ne soda a | R Borstonesa eodou obo.c8t epntbLe ut ng a2 Bice ote 900.9 & 4 ee BO we _ agawoaei, Goes. adacned or a sae a -oideyaq. - . ree pe 9 | aor s swe + oss bes afew ee ae o . a4 10,08 rere res Bae 900,80 "nay taget ensol | ia: ae | 00 ,.o reeves tupne sede seweee® 000 ,OcI( fadfamo) soel hi 2oitadd eth : i . ree i‘ it inereanen* .«s6idant909%, edaurvoos O00 08 5) tees noeLHy dxadod ° im. O00 iy ; é 900.088 90,0888 = 2 noeLen %o eftit etetogioo siz nebriss rACHHT BOOTS 909 005% to [atiqso « dtiw bestnesto ef ,hbeterogios. 000.0282 Bas xdoote heausterq evitetsimus XB ef 000,08) Ao edt toubmoo has ettupos ot feulav isq QOL) mdod) Mood: yaneH bis coeLb/) dxedof bas cofaedd .208a moe’ to ae oe yaagows ecT. . ies Pa La , : P ‘ Me 4 y ay ’ Ada pgm te ae ie “ate gil ree ‘ ( | eae, = 1 ANS wr ate: oe Sake wanes , 4 T ‘amg * cr a 4 PROBLEM NO. 79. 63 (N.Y. CsPeAr Examination? Messrs Sharp & Flat partners, engaged in manufacturing, de- cice to form a business corporation under the laws of New York, under the name of The Sharp & Flat Manufacturing Company, having an authorized capital of $100,000. The corpcraticn, in consider- avion, of the. entire issue of capital: steck, purchased all of the assets and assumed all of the liabilities of the partnership as shown by the following balance sheet dated May 31, 1900. Sharp & Plat take all the stock except five shares, par value $100 each, issued tc incorperators for cash subscripticns, BALANCE SHEET - MAY 31, 1900 ASSETS PLS Brie ine eee Vue ecm cs ues sien sss cs ce Ee. PolwlOD DEG Omran DOT TNVGHUCOL Ys ccc elen st cece ke aes gee wl mee» yes don FCC E Uae GCC L UROL sis 6 Gable cp ences nc 6 6 0 0 eee as 5 cereryrikt I era iL Ue slats “eee ice ayn) «dao owes one ata ean eleeee Mian eum 1,500 POT ais SEAN Gla, & ROI ae Bivie 4h ad emieve oye) 00'e Kd Bae gL MoE Ale cca © ep eet. Moyen: we ial els & ath yim wide holes 6 8 a 6 & 0s bala eS 6 $85 , 000 LIABILITIES ees re EY AL gue. ts 40d, 6 4.5 ew 6.016 9.6 6 ore Kole bo 09h eRe 01) Oey OOO Rs 0 ae oo oi om ook a9.d'e vie 6 o's voo's ai nie we se eniate ls we unl Olly OWU POOGU iw PATA LS 6 use ash elk Oo e's oe RR ew, + ce os 8 lee ae MRE SO 8 6 2,200 eek ie we einln go on die beh O18 0 4S we ba oe bres oul oe Wa Wels 700 WAPOS CUS BNO UNPAL Gees sec ee esaresvarerecseseneedesuves 200 Total aes eee Cae Ee caved ace hoa ee Pid BOA eh eleke web erate $85 , 000 During the first year of the corporation's existence, the books were kept in the same manner as during the partnership. Soon after the end cf the first fiscal year however a certified public accountant was presented with the fcllowing trial balance showing tne condition cf the books May 31, 1901, and was requested to open a new set of books for the corporation, covering the operations of the business during the past year and to prepare therefrom an inccme and profit and less account and balance sheet. TRIAL BALANCE + MAY $1, i901 Sire aig a da yb yle'w& vies oo sea ee Glenn se was ea ae» BOO Be a ig oe Gin sla's, 9.0% wa 40m Palen ee eats «ke acka aw ace 06,000 PLC eRe MOLY sy pes es oe dase sore ab ew meat Ore sO Stock on hand per inventory May 31, 1900.... 20,8525 Le cae ee wee ole a IN 0 Wo 8s © alee e+ mew aneye Tin dee 151,405 Purchases: materials and supplics.:sscessess 46,000 164 ~of _anttasdostenen nt bogegae fps os jalt 3 s3YOY wel to eawel eft toh: moltetogqroo pay gitved .ymaqmod paftwtostvasl telf 2 ras ecT to sia “rob ieneo mi .mottetoq1os sf .000,00L8 to. Laedtiqao ; } ait To Ifa Heerioiwd .doods Latiqad. to oueel Fee en gifleteniueq eit to esitiitdsil£l edt to fis Senusee. qtedia .OOCL ,fo ys betab doode oonsled, antwollo? « i989 OOL4 ostav tec ,zotsde svit tqeoxe yoote orld {fa | eanolegitoedye esd tot xodenomnoot al coer .fé YAM + Tide g0UAIAa | | 20S Bad ae a Nese ale : O00 cbs Wb ses «2. kien wikia nema ain fries elf E38 Se eee : 900 28% Cettesevereseverereewetseveeeneense@ ORR ogot SHITIIIGAIL Fh 008 , S84 bcs 0 ance Walgidlp ddl Aap hala ine alkane igure 006. ot $4 > 5 0 > 0 wiki k 68's ain lela S oe Oe iia eee a sa a! tel® 0aS.8- Chor see ese awereaereevrngersvengseee ces OLORVSE etrso0oA a) OOF ° wo 000 whine 4 (hank seb 8 Wy po ani Akad al ga elfta oes ‘ trreremeegeverscreccussensensenes esis Sas 95 Bega 00 , 883 noes dkiepieve eae aaehwkak Caames eee LatoT - edt ,eomedetxe e'notststoqtoo elt to unex teal? ont sate vu —qGinevenireg edd antauh 28 terntem omega odd at squat ster ae: boittizeo 2 seveword seoy L[eoelt tart? ext to bane ody neste moog eonsisd Lalas gaiwollot sit tiw betneesiq eaw dnatayooo8 ohiduqg heseoupet caw hoe ,LOeL 10 vat adood alt to soltibase ers gaiwote as edd sattavoo ,.nottatoqion ef¢ tot etood te joa wor 8 meqo ot etaqotg of Bae ta9ey tesq oct gatas aeontesd eft to amolttateqo _ »seote sonsisd bas tayoook eeol Sus $2 10% bra /omieré: ne mortorsds fO@L .£8 YAW « Som WA art e | 008, S24... @eeaee saseotea stueetahenhgaaalaamaaat tas e'g 005 , 8% SA wip.» £9 0 Ot 0B 40's 96 Oe re OOS. Vo O6.+« eos Hes ae nhl an +e e00OL Le [eM Mp: 80$ féf CL eeigai . 00,82 See esrsen lames Peas Tabak et, Wt lay LADOP eres reece cceceeesencereeersereeereecere ch: O4, ee CROLL OG « 4 6 «4.0 6 eae Whe eee laisse rare as fh TTaveeanererpoenses....6khe. PaTenee. er ae Lee Ee es PIONC hse KVI2 4 oo 0 0 o's bie 6 ha ee ae eee Peeatunery ANG printings «eves * oe uceeue eae s Petree CORES « + 0 «é waren s bie le Seebeck pie ears < 4; BPeeCOUnGsS and al LOWaANOGR ss sce os ce Ase pinta sy oie > RO on a Ste MW 2, G2 6 8 alelale Sie aces a Pade eee 4, SRSUTONCE¢ evn cds PEC SLVAUL Races wc ca ewe ote Freight Ll NAS ale eee ee ie ks ark ela web aaa ee ee i> COT 8 SLO tae bt Reames a tale esate ws ob elas ae eee o; Advezx Ptising. o 2S (Sel? G78 cG 44059 «© co aeeeaoenwws a2 ere + 6 Ps 8 & eC ee Bills Pee 4 Vad Lewes gases ®e®oeosareceoeaeeseeeeoeeweert ess @ 6, Bills DEVE Guest sae vay b wldhs 6 5 shes «oi n'e 0 he Rt ACCOUNTS, MECELVEDLE. .. 00.2% Cod Be 4 ete 6s te 5 IO, ACCOUNT Sree ey 6 aise er aiafe wie oo osn eo he oo vie om eee peg RR A ES oh ners 6, S00. 000 400 600 L'75 200 200 600 175 750 S75 500 115 anh he, O75 155 #O19, 5° 1,200 $219,155 Draft the opening journal entries necessary to give effect to the above, prepare an income and profit and loss account and a balance sheet as at May 31, 1901. Write off (a) depreciation 5% on plant and machinery, (b) unexpired insurance $75, (c) bad debts, (d) inventory stock on hand May 31, 1901, $19,605. Ref, L4—1 rit 3 | 008 oyi- o0o8,, > 0as,5 O08, > 3 ae bay. f. Ni eve,a | 008 | OLL,2 OoOL.f rae fy “ Nd ts o 8,¥ ey ete mca ee 1: neil eef «CL ae ee aoa a etal foette evig bas drools aeol { cf ) of. yrsaedoed eotutns Pye | eymeniidoan bas $ret mo soadte yrotaeval | (B) s * peweseene . se = ahirPc eas +o ee egntse arene doeeoi | « £ aa? * > a * . * treeecenee a * essere! . sseseseger ee akin See Owe sess, 0Lday * @ * * ee (eeu eee * Sidewlevet 44 f are olde yaq Kr cvanhe ace ed uke i oF * @. * -- een ere * eecaore ooo eaere * o@#ee @- f se ¢itotq Bas emooal a) -foeL ,f£% Yai Bi co. Re- agttatoorgsb ete beg (5) \¢ ; 2 SOL PROBLEM NO. 80. G4 (American Institute of Accountants, Examinations) The following is the balance sheet of the A. B. Company, January 1, 1915: ASSETS Cash . hoe “ - $52,864.00 Accounts Receivable. ° . 197,425.00 Inventories. ‘ . . ; : Raw Material . : . ° . - 84,268.00 Finished Gocds or ae ° + Sogou. 00 Office Furniture and Fixtures . ey —500.00 Land ‘ . . ‘ . ° . ~ 180,000.00 Buildings , . . ‘ . ° - 150,000.00 Machinery . . . . ‘ . ~200, 000,00 %053,654,00 LIABILITIES Accounts Payable : . © 35,482.00 Dividends Payable - Preferred Stock 2/1/15 7,500.00 Dividends Payable - Common Stock, 2/1/15 10,000.00 Mortgage Bonds- 20 Years 6%, dated Jan.1,'15 100,000.00 Premium on Bonds . . . ‘ 5,000.00 Capital Stock - preferred : ° . 250,000.00 - Capital Stcck - Common . ‘ y ‘ ° 500,000.00 Peserve for Bad Debts . ’ . * ; 4,718.00 Burpius . Panay . ° ‘ ‘ ° 40,954.00 $905,054.00 The transactions for year ending January 1, 1916, have been as follows:- Cash Received from Customers. : : » #793,502<00 Rent Received ,. ° 600.00 Purchased 1,232 ,000 lbs. raw nnaterial @ 20¢ per 1.5 Sales... 5 ee" SBBas Se 656 Discounts and Allowances on Sales ‘ ; 20 ,0L9.00 Bad Debts Written Off . we . . ° 2,143.00 Disbursements havc been made for: Acccuunts Payable ; F : : « (¢ 245,356.00 Factcry Expense ‘ ; . ‘ ‘ 7,489.00 Factcry Labor . ° ° ° ° 551,426.00 Factory Repairs ‘ . . . 20,045.00 Office Expense ; ‘ e ° . 1,927.00 Selling Expense . , . ; ° 52,914.00 Salaries . . ° . ‘ ; . 58,471.00 Taxes . , . ‘ ° ° , * 1 4855400 | p | | oie Pad Ag "BB Pla as 08 ON MaIGORS > be J ay, ny! oe i 5 Lenoidanerar’ « cadasdnssooon ‘to odutiten eased @ .A onls % $o0tls sonsted ott ot 3 araeea 00» Bae, Seq. OK: ae * 00. GSP. rer ° aso OO .go8 23 . : ; : 7 ' ae 90. see . £5 * . or. * * bode iregail wee md | 90,008, + . eonmdx tt brie oud aml eott Oo ,009 08 * a * . * ° — Set. 00 + O00 mele o * * * e * ganrbl Oise 7 00,Q00 OS * m7 * ‘ ” * yreniciont = : Feta 7 u is ear tLtTEAl a 00.88 .3& e pidayed etavoook _ 90,00¢,.7 2i\iNR. yoode porsetond ~ aidsyst ebnobivit Dee 90.000, 01 I\L\S .Ho082 nomi = ofds rina at ebsobivid 5 00.009. “oot aL". .. be hogab go eo tser ae “2 egentterl | 90, 000,.¢ ’ . . no ms iuett , - 90.000, “pags ‘ . bovsete"s - moo 228 fetiqs? 7, 00. 900 ,008 ‘ ° rm pi . ‘pomel = foots. fatias) b 90.8fT.® fa tee es Me At nine _ aes evseso" a go 2 hee * * . . i a * auletis® : - goed svar ,ofet ch qrsunal pathne 189% 10% enoptosenets oft ! 7 " erawoLlot 86 Lo a ‘00. L0G ,EOTE ie char het most pevisooh Head . . 90.008 . * ‘ peviooel sr0F 7 ss . os © aksodan ‘waded: 000% ges, f i beasnomw a ‘a i . Lg ee L q9q - , re ae a! -. 00 .BSE,.SSS | x bs ieee ws 5 aokse oe. 90 .e@£2,25 aay ae mpage rt sbonetotti Ba este 4 ae ke OO Obl. S$ . er ane aa vais ‘eadad bad a . ‘ i, | spot 9bs0 a ound adrrenise eid call is rie ‘ yo aa 00 .dGb, 525 # eidays* amneek : 00.08P. qx yiodost 60,38, 18% 00 Sho. 00, TSC, 00.2£8 86 O0,5Ch» 65 Inventories, January 1, 1916. Raw material, 412,596 lbs., having a market value of 22¢ per lb. and finished gouds, $30,842.00. The land is estimated to be worth $200,000.00. Semiannual dividends of 3% on preferred and 2% on common, declared in June and December, payable August 1 ond February 1. Reserves for depreciation of buildings 3%; mechinery, 5%; Office fixtures 10%. Bad and doubtful Aebto reserve should be 2% of accounts receivable. Prepare an operating statement and a balance sheet as on ganuary 1, 1916. 7 164 af aeq YS to siritae a 8 omtved 08 SLb- | ” “ed oF bodamites et bast od? weit atts abe ~ phertestexq mo he to ebrobivid Pyeng bet { ¢ewauA eldeyeq ,redmeced bas enh ot 5 bee eo eer o noltstoetqeb tot peutic dab: bertgsuch bas bad ,ROL eowwdxit 92770 | a .oLdavisoet etaooos 10 KS 9d | Luc — 29 aa sora sooosind « bras taosiesate sais he fa.s A ape naps PROBLEM NO. 8l. 66 (N72 Examination) senior partner A desires to retire from active business life. He has confidence in the ability and integrity of his partner B and both have a like regard for their sales manager C and their works manager D, whe have accumulated ccnsiderable means. In this situetion B propesées to Organize and to continue the business as a corpcration, under his executive management, and ta bring in suf- fictent capital from C and D in equal parts to pay cff the princi- pal of a real estate mortgage falling due at the end of the year, and sufficient capital from E, who is net connected with the business, to pay off the principal of the firm's notes payable. It is contemrmpleted that EH shall be made the treasurer of the cor- poration anc thet the five parties shall be the incorporators and constitute the first board of directors. In the discussion between A and B it is agreed that the net worth of the business, exclusive of the gcod will which has never been represented on the books, shall be converted into preferred stock cf the corporation and that the good will shall be valued at one-nalf the net worth and be converted into common stock; also that the cash capital contributed by C, D and E shall be paid to the firm, used by it for the purposes proposed by B and converted inte prerverred stock for account of the three parties respectively. Thereupon A orcposes and agrees to surrender one-fourth of his snare of the commen stock on the condition that it shall be dis- trivuted as foilows: two parts to C, two parts to D and one part to E. These matters are all covered by written agreement of the five parties, in which agreement it is provided that A dnd B shall convey to the corporation all the property, business and gcocd will of their copartnership, and that all the transactions and stock distributions provided for shall be carried through and be closed cut in the books of the copartnership, including tne sum of $5,000, which shall be advanced to the incorporators to pay fully their subscripticns for 10 shares each cf the commen stock of the corpcration. A certified public accountant is engaged to make an examina- tion of the books and acccunts at the close of the year just ap- proaching, to procure aporaisements of the property and to close the books after providing therein for his compensation. On the completion cof his work the bocks show the following conditicn: ASSETS hg ip er ee A ee ee ee ee a ee 6 50,000 Bul ldings eee ° eseeseeomeewvegesteeestvwoeeeeeeveeseeeeeoexwret eo @ 200, 000 Machinery, etc eee? 4 *¢eweeeszvaeece~e¢gt@Qeae@teseee Dee eete @ 100, 000 164 3 ri +. 8a 8 .OW MaLaOHT (roksantoaxd AcGeD a ee ,otil eeontand avidom mort eriset ot eotisoh A temsied | @ wentaeq eld to ytixnetat Ona yeifids edt al sonebl it axtedt Saas 2 rogsaam colese tledd 10% byagot oll s evecd aidd al .ensom oldstobienco batelymsoos eved onw ,7 tegsnem 8 ee geontend oft oumistaoo o¢ Das osinsg 10 of eseoqoiq 4 aolidauyie etue at aniad of bas ,tnomegenam ov lIuooXKo elit soba .aotteiogtos stontaq eit Tio yaq oF atusq Lape at 2d Soa 0 mott fadiqapa tnefott n a .mey edt to Sne elt te auh gntiisl epsatiom evades fsex s to leq . aa adt déiw Setoennoo tom ek odw .a motl {stigso cnefettice Par : ,eldeyeq eeton e'mrtt edt To faqtoning srs tto yed of ,peerienud soo oft to sorwesert ot obam od fiere < saxtd hetsliquesaoo el st fas exoverogtoons edt. od Iles eolsisg evit edt tant Sas not oatog _) etotoerra to Sisod deat? ens ett igenos ue ton oft teadd bootge et tt @ bas A noewted soleayoelh ands ke ee nxovoa aed soidw iffw boos ent to oviawtlone ~eeontend edd to astow Re a hertetetg otmi botirevaoo ed LLnca 2xo0d eft ao botneeetcet goed, 3 boulav od Iferle [{ftw boos ene tad? baa mottatogtoo edt to xo90sa onfe :xoote mommdo odal bedrovmoo sd Das dtyow jen sft tiss-ono ta ot bisq ed {Iecde A bas d ,D yd bosudiisaos fasiqad deso old gerd ho¢xernos Baa & vd boecqota aesogiug edt 107 $E yd bees .orlt od xviovitooqeet coitisq setns eft To gmyooos got soote Sexrete ng odnl- atd to Atxvotesano tebesttvse oF gootas bres geeoqotc A moquotont weeth ad ILane #t tedt mottibaoo edt ao aoose aommoe ent Lo ofere tesa omo bas d ot etsaq owed ,9 oF etusg owt rewoliet aa betes . “ho ‘ aan 08 edt to ¢nomeetgs nettiaw yd berevoo ifs ots etettan seerlT | {fore & bab A tedd bebivor at tL snemeetge dotdw at ,tetieaq evit Soon Das seenteud ,ysisqotg edt Ifa aoliatogio? els of yevrroo bas enottosenett oct {fn tant bas ,qtdetentisqoo trod? to L[iiw ed bas devorwlt belsiso ed ifsde tot bebivotgq enoltuchisalb Moote nue sft pathufont ,.qidereatxsqoo ect To exood/ ods af duo begols . yeq of etotatogtoont ond o¢ beomevhs od Ilacte “otsw .Q00,8$ to - Noote gomuoo edd to dose eotade OL tot snoitqicoedwe akens yiint | * moitatiqioo sit to : jos esainaxe ms exam o¢ hernsegao eat Inseimitoola oktfdyq bettisgaso A ) “qn test iney ot to eeofo end ta etruoas bas exood act to molt 9e0fo.o¢ bas yireaotq edt to etnomeatistons emsoorq ot .ghnidorotq — anid a0 .mordscnoqmoo atd aot ateteds gnibivoerg T9s%s exood odd = etaega " ON a i p ae a ; ; ; rn ; ) Peat iy, = 000,08 % eevee ewreeere peweeneeraeeaene eevee sees eee - Dr aa 900, 00S cee eee e renee ew eneeaeeneee seeevecesene fal ae LI 000 ,00L£ Ce ee eee eoeee eee ee ote 4 prs fio ie ~ 4 : { a tu , ra OS A — DAY : ma ; a a ed ee e id SO et de: 7 he = 5 ty Uj ee Finished product, product in precess, materials and BiPplLS sy. es ea eb a ES Eu eee. $150,000 NOCER PeECOLVOULCc.c ev ewewneecl is Accounts receivable. eoenmperoeoesees eo 5S 2e & 3 (IO Py Sa ee ee ee ek kc ao ee Real ‘Notes paya . Accrveda "otal BSSCCES ou cae oe ees ae ° e¢een2oee: oagee L oe oe ie es e e @@@#¢64o eeoe#g: - @#@e 09 6 eecepeoeoeeeeeoeges LIABILITIES AND CAPITAL SStALS MCPCPeaees pace wees anaes sas 88 Accrued invercst on real estate mortgage..... ble on COMSNnOR th es th abe eau ba OPES LNiCGrcen cm Hotes” Payable... .+sces eee Actounts Eve ewes et aoe eae 86s > ek 6 ke 2 Ew OS Aecruead paps ol aE ee rere oe we De ae provisicn for unccollectable accounts.. ae ko co cary eae ae 100,000 100, 000 100,000 » $100,000 e ce seseeenwpeeseeensree8 &€ ee 6 WG Been conan eaten Ce CEST o Ee iets eee - Ref. 2,500 50,000 1,000 25,000 6,500 15,000 400,000 200,000 67 3800 ,, 000 - Total liabilities and Capitalesssseeeee+ «800,000. 000_ Prepare cash book and journal entries to be placed on the books of the copartnership te represent properly thereon the carrying cut of all the matters provided for in the agreement of the five parties and to close gaid bocks. 2On4 164 LA ‘17s ‘Or Atle Se . 5 a os my iy Ph Are a v 1. 5 4 x; Wh : | ‘ , tah j “ : r el Mey. A} ‘ ‘ ; q “ “hi { Se Kine d ai Pe: a, Fin Raak on 2 “el Sere ti ee 2 19.9 Seme a el a See . . My ey ey Ar 5 ae abs: Se RR Pi : es. 4 oe vere aedQagertom otaseo. Ester | 900,0¢ cena neem eeebenesenw eee” B: eens Ce re i) 4) aotoa tio $20 ‘ 000,68 sn enpevsreneosntoeanpareer: 000d a 002.0 ee ee re seeeees! 000,61 ..ed¢noose sldetootivony nol fotetvo 900,00 3) apes sa eae Rane Scien ‘ G90, S08 “1991 eng ONS «9 2 ete era * ry a ; ey seals rae a 200008) : ,TebL rawollot es attisg dtiw tt besisers Se 302. WOE.SE. .2 teuihs of setitne yiseessen actt oxlaM «SS.0Sf,08) ~8CBE aL Sas ,626L .f& ,00d aoltibmoo suett ocd worle ot e8 08 «Mostsnslgqxs catonos Sag elo | $8 .OR MBISORG | ; | (aoivaniqexd oAsTE.3 .¥.H) gaifllottmos ynittupos to Seoqiwg edt Ol Henrtot .etsotbaye a me Ot Beloog hs ,esinsqmos gnitwtostunen [sievse mt eseotetnt 190d bad Atiwerert beeedowwg eottiayose edt bas 2.000 ,GO8,.L£3 Yo : -ooseuts @ lo ebmad edt mt ie ~,000,82 to fatiqes bedinrcedva 2 Atiw bestas o 2aw moo A -Maeo mt biaq esw 000.8? doldw to (fo: COLE eotadde) .000 Yaaqmos eds neewsed otal Hoetesns Jismostgs ms lo amet oft yg aid ot Beseal ed ot stow woods to eonece 060,93 ssoteunt Sana ot eaw peso at ave «PS5G bos ymin yd blod esitityooe edd {fa sot »tSvewod ,ehaem anied motelivorq svsqaos edt ot min yd blag od 10 towome betiuper add veq ot DSeltst osteuxt oF sean nt sacs Tol AHoote Yo getede G\Lad yaaqmos eds at Aosd att oF asw on yileso evsq oft Sollst ed ¢add OOLS cloze at Moose homiudted .feso yas yeq ot eldant nated seteuts onT ; | sbebivorg es ,.tooreds vetl +000,87 steotbaye ent to etedmem sit betetto medit Yasqmoo oxiT “109 O0O,.84 close tot waote Yo estare CS base .teq ts eettixvose At Hetqeooe esw tetto ein? +000,008,.£° to Lo. Hbrosee a2 ot Bostudiat — anied Noove bas eeksttasrooe gat bieq Loog 92 ant To ilsd bas — | . _ ---hee1gs es boxest Svia ILiw dotcw yesqmoo ett to exood edt tot eeiatns efem -sonsisd s etagetT entottosansit yntozedie? ecit ot noteesigqxe qoiq “Mii el ; y ie PROBLEM. NO. 85. | 70 (N.Y. O¢PVAy Beaiinevion Three brothers, A, B and C, own all the capital stock (each 1/3) of a certain corporation X. They own also but not equally, 55% of the capital stock of a kindred corporation Y which is capitalized for $100,000, the par value of the shares being $10. The holdings of each in the Y corporation are as follows: A 2e2e shares B 2226 v C 1056 ‘ The three brothers, acting as the corporation X, purchase out of corporate funds the remaining 45% interest in the corpor- ation Y, paying $100,000 therefor. Without further cost to X they now wish tc merge the two corporations under the corporate namé X and to dissolve has C propcses to make compensation to A and B individually for an hg \ interest in the 5500 shares upon the same basis as the 45% interest was acquired, so that all may share equally in the “merged properties. . How much should © pay to each of the other stockholders? Outline the entries necessary to record all the above stated transactions on the bocks cf X and Y. Ref. 16-1 164 | Se ARB, ha as ¥ 7 sy 4 “oe by i? - . fees (ay oa oe OF PN " ee” 2cBy 0% i 6 ani y dd ) ane (no 1eattoea a0 0a | ; iglesia % dose) 3 ape ides edt Ife ‘wor \Dbaa @ re eGo evilavas ton dud oats xwo yes? .X mottatoc $oig ifsts, et Hotdw ¥ motsersa10 Soabriet a ‘do wood -O£3 (BB. 9d eotsda oct to onlay. mag edd Ppa - raed fod a8 958 a ¥ pains hase 2 ba e, > Cap ge : ae eeaiotidq xX nottetaq4oo OF aa piitos steeoan 99 _ stogtos ons at teorstnt Fah wAidtage: old ebay shatocuen © ay K Of 3809 tortrst tyocdst hy eMI29TOAF O00,00L) xelysq Yt _ - «MWatogios edt tobnay enottstoqtus Ww “odd sytem of datw wor Kegichised a ; ids © aaa cal sh a eviceets ot ban X ahi , tot vltanbivtbnt G baa A ot i a pre getseey, lead a at ” 4 oit as ehesd omee aft noquy geteda 0082 Lee ni tat. A. ‘a | ed? at witeupe onade yaoi ffs. tedz oe a . proeeers Nad PatobLortiovte xanto ert to dono o¢ yen a) penny betase evada edt Lis bro0e7 o¢ ytagedden a _«¥ Sma X to alvod one mo en, NC Ma: 2 NK ar oth wr ha j nh , | a % TEN 7 ; ” i ; sah (ie és 4 ry a hacen e its eae ioe: det iw 5 a OF ‘ de bin Ae Ca f. . PROBLEM NO. 86. tL (NY. Oe Ps Rie Examination) The balance sheet of a corporation having a capital stock of $500 ,000 and 6% certificates (not bonds) to the amount of 138,400 outstanding, shows Dec.31, 1903, an impairment of capital of $125,000. Interest on the certificates has been paid to November 10, 1903..At the closing of the books allowances were stated and entry was made in Certificate Interest Account for pi, 155.53, interest accrued to date of closing, In April, 1904, it became expedient that these certificates should be gratuitous= ly surrendered to the company and retired as liability, as of Dec. 31, 1903. A stockholder, D, owning $250,000 of the 300,000 shares of stock and $64,400 of the certificates, offers to give the other certificate holders dollar for dollar of stock of his own holdings for their certificates, and further offers to donate back to the company the certifcates thus acquired, together with his own, so that the impairment of capital will be removed. The ‘interest from Jan 1 to May 10, 1904 ($2,998.67), is to be paid by notes of the company but not to appear as interest on certificates, for the reason that the certificates are assumed to have been retired Dec. S51, 1905. The offer is accepted and A, B and C surrender certificates to D who gives them stock therefor. The ‘company gives two notes each to A, B and C and D, one for interest Nove. 10 to Dec. SL, L00S;.thevotber for interest. Jan. 1 to May 10, 1904. D thereupon surrenders the certificates for cancellation. The certificate holders! accounts are as follows: Amount Ctfs. Int. Acerved to Ene ss. cane i. to held Dee. 31/03 May 10/04 ee ee a 8 B00G00 anni cay O6y68 ney Bn 7SeSs Rane Cee reero eT Sy O00 LUC 250.00 650.00 Cyeerarecacsee 56,000.00 500400 780.00 eee he hee ea nt z 64,400.00 536.66 1,595,34 : $138,400.00 $ 1,153.33 42,998.67 Suggest a method of recording this transaction so that the notes given for interest on certificates Jan. 1 to May 10, 1904 shall not appear as being given for interest. Make entries for all interest paid, for the certificates surrendered and for the rehabilitation of the capital account. Show also the condition of the deficit account. Ref.16-2. 164 a) 08 ,OM MaIGORT | {nots antonnxt oA 7 ev oX¥ Kt) a, t0' Hoote Ladtoso 8 gnived sobtstoqtes 8 to toede sonstac bs to tovome of? ot (abmod tom) eeteottities qe bas 0 0.00% fadtqsa to drontitcamt ma ,cOCL .Llé.907 awode yantomass 005, 46L of blag moed anit cotsotitides oft ao teotetal (eOOO,esle to e19W aeomawolis evood ed¢ to gnteelo orft tA. .cORI (Of sednevot NOT grnvoooA teoretel stsoktisasd al ebam esw yittae Dae bovave —bO0CL ,[itqA mt .antcolo to etsbh oF hostoos Jaototal S61, f easotiutatz, od bilvoce sotaottit@qen seers tad? tnekbeqxs emaosd ¢ to an .utiitdarl! ea berttoey. baa yeaqroo att of betebmetive YL: 000,008 eit to 000.0888 gatawo .d ,veblodifoote A .eO0CL .f .o0d ovig of etotto ,eetaottitres eft to 005,.56¢ bas foote To Boterle el: to asote to isllob stot arellLob exedblod etaoltisues wento snd etanoh ot eretio rtodtrwt Bose ,pedsef titres afons tot eantSlod mwo dttw vedtesos .beitupor aut setsotisxeo edd yasamoo sat oF Wosd ect? -.hevomox od [ftv [aticso to tremtisamt easy Jars o8 . nwo ete yd bisa ed of et .(%8.890,Se) BOCL ,OL yaw ot £ mel mort teorstal 2ecsolttines no dectstnt es tseqqs of Jom Jud yaagniog oy To eeton moed evan of Sowers ore sotasotiisned edd tad? aorset ods tot 9 bas @ .A bas betqesos at tetto ed? .e0el ,fc soed Sertset oif ,%otertedt xoote ment eevig odw @ of goveotiigiss tebnetive gesistal.tot eno ,72 bas 0 bas &@ ,A- ot dose eeteon ows covia YAsqmoo ,OL ya of £ .met tesrstnt tot tadto eit ,CORL ghe .oe0 oF OL vou stotsa{feonso tot setsotttireo eft esebasaive moquetess C@ ,b0eL sewolfot es ota etnuooos 'ayebLont ssastityiteg anit od £ .aeG «tnt od SeruntoodA: . tel -ett9o JdovomA SO\OL ysil . SO\L% .90d bfLert | eevee & —° > Wade. } . C000 eS J... cuvcesenee 00.086 00.088 00,000, 0 eoeveceeenseugel 00.087 00 ,00€ 00,000 ,d6 Pervert ys, bE.oOE Lf 08,822 00,005, 39 a a “9 see «4 3,800 ,S¢ SSSSt ft @ 00.004, 8E1E adit tett om mottoseaetd eidt antbt0se% to Ronident £ dusqane : vin aeton BOC. .Of yall of £ .mat eotaotiitaes mo teeisdnk aot mov rot eskiins steM .teotedat.cot movin nated ea tesqas don [Lorde edd tot bis botebnetwtwe setaoitisseo edd sot ,bieg teotetot Life ftoktihros et oefe woke .tawosos Iatiqes oft te motiattitdadet . | | -.,tawooos tiotteh eat to hol .8-3f.208 & PROBLEM NO. 87. 72 (N.Y. C.PCA. Examination) A railroad company has the following capitalization: Shares Capital stock outstanding (par value $100) 92,438 Capital stock issued and in tréeasury...... 6,459 CADI EAL STOCK Umea auOd, os ic ca RAE ee elbael. bg Loo Total ODT 20s ee aca aac! O00 The directors declare a dividend cf 10% Aare Sees in the stock of the corpcration and the resclution authorizes the officers of the company to use the treasury stock and unissued stock for that purpose and directs them to purchase on the open market as much more stock as may be required for distribution. How much stock must be purchased for this purpose so that when the distribution is completed all the stock shall be cutstanding and none shall remain in the treasury? Scrip is to be issued for fractional parts of a share. Ref, 24-4 PROBLEM NO. 88. (Nada... Ge Pele. Examination, The American Manuracturing Company, on Janurry 1, 1909, placed in service a piece of machinery which would _Aopreciate, according to its chief engineer, at the rate of 15% per annum. The criginal cost of this machinery was $84,000 and the board of directors agree to set aside annually a sinking fund which, together with the interest thereon, will amount to the original cost at the end of the prospective life of the machinery. This. sinking fund is to be deposited with a trust company on December _ 31 of each year and a curresponding amount at the end of the last partial year of the life of the machinery; interest is to be credited by the trust company at each of these dates at the rate of 4% per annum. Show how the amount of the annual sinking fund payment may be arrived at and prepare a detailed statement for the board of directors, proving that the amount so cbtained is correct. Ref. 50-1 164 : Lote rr (00L$ owtoy ate aeikasdenes pe iy Sa ee “ OBALS coveesVIVESOSS Al bos Soueest Hoote fastqsd | -CSiet tereer esses eesend sre DONRG Lets: Moode Faa1qad a Pa 20090 eee sees sas bmaniti9 Loto? - ‘ "he rs ined ont at eidaysg Of to haobiv ih. a otel905 enodoothh ent to ereottto ont cox isoddius KoLislowes edt pers nottawgioo edt a6 tens Tol woode S5ovreeinay bas doode . ty + od sas ot yoeqeiog ent’ owt 3° toaltan: meqo ods moO seedo-gete “ad medd stooxth bas 9a0q ive Hoote om woH .cottudirte lh ot. e% od yeu er wo0da. Eh verul noliudixvgerb ont aorhe tadt oe seoqung afdt tot Seeannoing ni {farce enon Sac vatiastetuo ad {isthe woute nnd fia Derek fenottoaat ~ol Seveek ed of af ind | | (no tdsatiosxt As 7.0 Feit) loan ~20CL yl viavant ao eYeingmod antautos wach pean edt cOSslverqoh Slow dotdw yrontdoam to sootq 2 9otvace mk beoeta WIKs teq “dL to ot¢aat add te ,toentgns Tetde ett ot gebbros t8OE 615 Hrs 000,283 few yionidoam 8ied to geoo Lenk dred out 1 tetw Hest yablete S Yflavans efbles tee ot Comge atosoe 20 Es nittodtos ‘eds ot Savoma [fiw .moortedt sestotal. ont fitiw tesitegod cil stentsdoam ent Yo etl evitoeqeorg ond to bao Rast ae tess ISsdm5960 MO yraqmoo geunt g itiw Setkeogebh ed it (at & Narre teael ott to Bae ont ta towome sniboogeerins a OG ot ef Seetednt {ytentsonm eft to stil ers Stat oft ts asteb eesadt to tlose ts yeaqmos tan acivnte Lasans oft to tayoms eft wort wore | tosmetste hettadsh gs Otago bas te bevinta Honttatds oe Javons ents: tasks 7 Se eh hiss ie paseed . male Ai urs ng. i f ; ij ; : Ne it yy . hia owe by St ame can! i i ‘ - - ‘i 4 PROBLEM NO. 89. 73 (N.Y. C.P.A,..Examination) The New York Land Company was organized January 1, 1907, with an authorized capital stock of $500,000 divided into 5,000 shares at $100 each, par value. The total authorized capital stock was subscribed to by the following: JGAR DSS His PRRPAIFE. TPOR. Oy. OPppieinas & e = BS ae yee ene) 000,888 taevetnt tuodtiw,80!.f .det oub,TOl qf .det bed OOLS8e teotodnt tvorisiv, COt gt .fot ENB, 000,ea% teetstat guodstw Of "fr idet ouh, TO! yf adoe, bods 000,883 teotetnt tuoctin ff £ ,det egb, VO! .f a 3 wo4 a got yleton dvd exfood edt meqo ton brb somenett ¢ yuswide! o¢ enoitorencsd gaiwollot odd to Xood xoedo Sat mo. ” ha | aobsouatenod mort bevteset Moero: OCf .f amet | uoote To drssoo08 0°09 ery Ne 908.3 & otek ee eee ids weed ~noltqitoedue fog tS ) Ley 7 is .: aL nottasiasgtO mort Beviesot wooed Yoel yf .ast Moote. to Invooos 0 09 aay 008. eaobensccweeasebagor ds ToRtvG ae em. ig Pe ms ee | sottesinagtO mort bevieset woo yoor,efL .ast -due woode tO Faooos MO «00 as | 006 . VS even ne, 2eonsvhs bas molsgiios Lo nolsoustanod moxt beviteost xoesdd yoel ,f .de® | -due wusote to favioods mo .00 COZ. TA . weeewe re BOOMSVDS Sea motsiqitse | Wiig i aaa ol rot atime .A of seveet Moedo YOCL,Of «ms neg ! i £ - Jat ie Aa 00.avs @ seta wceccuceves GOBMOG40 Lage. | : 3 ¢csoose Ao 4 A of boweet Hood VOOL.ff ,ast 00.000, 68 uw cuvcncede HOzsdOtug Diet Te) ysoroltase oF pesaet wood) YOOL,eL «mat qmste .laee ,alood 107 yitBMoD av, dc3 cl eae cekeh ass haw a ee - : : } | soevont matiliw ot beveet aoodd FOOL, Lf met OO, 028 casero eYreunst ‘tot yinipe MOT 4” bails: oe “atrigth tetal’ of boreel aoerto yoei .f .det 00,000,628 ©. ,eebtel to tivosos No yaBqmoo ee ay.o2e, avg 000, 08% | | Daa ee G3,0D0,8 ereevenesee vee ob CRE mt cone lea TOOL, 8S. SOF am 90.000,08% _900,03$ | | Piha tp Howat? ,etuombenths tasretat patbutont «anobkogeaent 114 a ant ao vinttmom bebtooo% od of ote mune 16q to sn ae ° 7 ‘ | ea ne A P » 2o > yoo ba 7 : nl i > " * _ i. Ue pO ' no etood afd nataege ,eetdins Lan I aa Hose tot eotatns Hood dead bus 88 B | sesh qo% egonnisd [atid bas ytaowdet Sas Ytssnat odd te. coo - Tare / ; PROBLEM NO. 90. 75 (N.Y. C,P.A. Examination) A conpany is incorporated to purchase by an issue cf pre- ferred and ccimmcen capital stock three concerns, A, B, and C, doing the same class of business. It is found that the assets (by actual valuaticn) the liabilities and the average annual net profits of each concern for the past five years are as falluws: A B C Assets as valued,....2+..-- $100,000 $60,000 150,000 Tinbi Litis aerate os kale 6. 30, 000 20,000 50,000 Annual net prcfits, average five Voere lon Gee ee, . 48 10,000 15,000 8, 000 It is required to know what amount cf stock of the new com- pany should be allotted tc each ccneern as equitable compensation for net assets and gocdwill, and the matter is referred tc you for report. What shcovld be the amount of canital stock of the new company and how should be apporticned to A, B and 0? 164 — ar 8 2 og Lou MeO ay aie (noissntmexd Ast) see J Am ited -ong to ovaet me yd sescoire ot Hbatatoqioont af ve ,o Bae a ,A ,emroon09 setds Woote fasiqes® sonmmos atoses ond dadd Savot ot SI ,eeontexd To eeasld 92 tor: lawns sgatovs oft daa eoftiticatl odd (mottectev Xe -spwoliol es ote etaoy evil tesq ors tol misomoo one 7 ie a) i. = Olen - ; aa g A | 000, 08L8 000 ~O8:? G00 ,OOL? ens eeeonese heutlev 23 a ew tame a 000 ,0¢ N00, OF 000 ,O& ; baetacssa0genes sAGro LL SOM mm agstova ,ediioig ton fewacA 000.8 — 900,6f 000, 0L seseeenec cass ee BERBY evit rae ig We cetog wor edt to Noote ‘to dnvoms Yadw wom of botkupet ef 1 an goisaensamos elfdssiupe ea mreomed toes oF setdofla ed bLyore _ ot . voy at hewreter af setdam ong ona ,{Liwboog ons etoses gen tot: tj sit to Hoote Laticss Yo ¢nvome end ed Slvoile tart taoqet TOT 9) bas & .4 ot Heaokdaoggs od biyods wod baa yasqmoo won | / Reba en bar Wid tere ee PROBLEM NO. 91. 76 (N.Y. Cin Pa Bare ements) A corporation issues $100,000 in 20-year bonds, dated January 1,1902, redeemable out of revenue by means of 20 annual sinking fund instalments of $5,000 each. December 31, 1902, $5,000 is re. served out of profits and placed to the credit of Reserve for Redemption and $5,000 is deposited in a trust company @ 2% and charged to sinking Fund for Redemption. Separate sinking fund books are opened in the ledger in which Cash is charged and Sink- ing Fund credited with said first instalment. February 2, 1903, inventments are purchased for the sinking fund and the principal thereof is charged on the sihking fund books to separate investment accounts, while the accrued interest is charged to Revenue from Investments. . The inventments so purchased are as follows: a Two (2) gold bonds 5%, due 1950, of $1,000 each, inter- est payable,May 1, Nov. 2,@ par and accrued interest. b One (1) 6% gold bond, due 1940, of $1,000, Apr. 1, Oct. 1, @ 120 and accrued interest. ¢ The company loans on first mortgage $1,400 @ 5% inter- est, payable Aug. 1, Feb. 1, The interest is regularly received and deposited in the special account, charged to Cash and credited to Revenue from Investments, which latter account is in turn closed by transfer of balance to Sinking Fund for Redemption. December 31, 1903, the sscond annual reserve is made in the amount of $5,000, less the net income of the sinking fund for the expired current year as shown by the sinking fund books, and a corresponding deposit is meade in the special fund, while the proper entries of the receipt thereof are also made and posted in the sinking fund books. March 1, 1904 two (2) 6% bonds of the same issue as purchased in the previous year are bought for the sinking fund @ 116 and accrued interest, one (1) of the 5% bonds is sold @ 103 and accrued interest, and a first mortgage for $3,500@ 5% March, 1 and Sept.1, is purchased. The 6% bond bought in 1903 and held at 120 is written down to 116, and the remaining 5% bond held at par is written up to 103 by cross entry between the principal account and the Revenue from Investments account. December 31, 1904, the third instalment is reserved and deposited in the same manner and on the same principle as the preceding ones. Frame the necessary journal entries on. both the general and the sinking fund book to give expression to the foregoing trans-~ actions; also the accounts affected in both ledgers showing the status of sinking fund at the beginning of 1905. Ref, 19-4, 164 ' ut : o ue * wean ek 1y ib | Po sy ( a : ae Sed |) x Re f f ; Acs » Tee eh AS | +) i 4 by ‘eae hi ’ h i A i ire ih oh oe) at ayraunel, BOPAB eebnod teey~-0S az 000, 00L5 getter e Dias an O8 Yo easom yd eumevet Io, art at Q00,¢ sel Le sodinoged «close 000, . a | tot owreseh to FiGexo odt of beosigq Sas atti wo be bas RS @ Yaaqmoo jeuts & nt. bod teoqeb ak 000.86. m0. wWqmabon ae bert oabinkgs odateqsc cottqmebel ‘ot baw hints ot Beptaio | 2 an eMieke Sak begrado 2t desy dotdw mk togbel ond mt . | jnomgeteank Jett bise nitiw bet theto, Saar heesdtotwg ota ednomtnrevat eoeL ,& yrsuidet i a » Sept satuats edd ao ban iso at tostetys feqtoniag ott bas bast > geoatnt bouneon odd oLicdw ~edounoon tromteoval Od nts ee of eXood ee ee, } btaomteoval mot? omsved of Degaaco at griintie eft to? yewolLot es e786 hogartouug of etnomtaevat ont. erotat dose 000, £8 to ,08eL enh Re ehrod Blog (S}) ow? @ 2.4. .teerednt Bosctoon Sra "tsd @,8 .voll ~f Wald of otis s phasis a .¢50 .f «TQA .000,f3 to ,ObOL Nb epaod Blog RA (L) en0 od ¢eoreial beureos bee OSL ae atotnt RA@ 002,£% easattom text? mo eansot Ya odT 9 + { .det ,f£ «BUA ofdayad «ae ett mt hbetisoqeS bas povtooet vitelvget si gesretnr oct: a mort suneved o¢ Settbeto has dasd ot begtads ,tawooos tatesqa | astensit vd beeofo amt af ef ¢nuosps “ested Hotdw ,atnomd cove : . gfottqmebon tot bast gatinie 03 goarisd to ond mf ebem ef ovrocox Csuans brosean oie SOL . LE todmat A ha) eit to% bav't antumte oft To omosnt soa oft aeel ,000,8¢ to tavomn AAtS a bor .exood. brut gnivate eft vd rode at they taretIVS bertqx® | & ot af ebam ek theoyeb gntbaoqeett0 ae ent elicnw ,bavt [atooqe eb sie poae Sam Onin ots roetedd Jqteoet eng fone btine seg0%} oe emee ics | i co] ? boseog Das 9 att to ebrod 238 (8) ows B00! i fotsaM .exood hawt gainate votvetq edt mz beerdotug 88 ebrod R& ect to (£) ano teotetat peuttoons bas aff @ } ae “ot egoattom fertt s bas ,teotetat bewtoos Sak 6D 1) grigued baod 33 ei? .beandomg ef ,L-Fq02 bas L yifoteli | gnintoames oft bra .8lf 99 nvob nettinw ef OS! gs bfed 1 ‘teowted ying e2#ots yd EOL of qu anq t45 wtouroson etnontteeval mort eaunove yo Bettroges ban howroeet ef trols Og ROMO Amihoeoo tg ait en slaqtoning one ian 7 a & f ; +) . se 7 i if - ‘ ) “a Diath Ae 1 + I ih i a = . 6 oe tale f $ he PO ho 8 ie q fe nikal f \ ve $b Lanenca oc eemett gatoaeto edt aeffworle esogh Nag 6 fe a Ain ‘ Ppa sa ‘ j F ; ; ire : ; ' i i \ Ta tua i ’ Laie Ad r ij % f ; : i ] i Pay hx mae Tory, ie, A ‘ 4 i : } i : , Cr ip ee i Ve yyy ian ' Baril iy yen aia 7s ‘ H 4 ‘ ; ff ‘ A | ei ~ ie J hi had fat ie ih ; ‘ di i win h d 7 : ‘ 6 rs i ih 1 4h ’. r yr ncoe id ah n J ns * Ads oa ¢ iy j “J ; 7 x a [ , , , : i ay ae 7 ad ine phy) 4 Daw laa 4 A. 4 eo We Vist! og are 4 2 A, et ae k 1 ae id rere ah roy bi 0. seh Xf ely 7 ; CP Pn mare Or PROBLEM NO. 9e. Te (N.¥. C,P.A. Examination) An issue of $250,000 fifty year bonds, dated July 1, 1904, is redeemable by a Sinking Fund into which annual cash installments are to be paid by deposit of funds in a Trust company which allows interest at the rate of 2% per annum, credited Jan. 1 and July l. Separate books are to be kept solely for recording the sinking Fund operations. The fund so created is to be invested in interest-bearing securities and the income therefrom is to be applied to the reduction of the succeeding annual instalments. On July 1, 1905, the first instalment of $5,000'was paid into the fund and on the same day the following investments therefor were made: Two 5% bonds of $1,000 each, April 1 and October 1, at par and accrued interest. Two 6% bonds of $1,000 each, May 1 and Nov. 1, at $110 and accrued interest. On July 1, 1906, the second instalment was duly deposited to the. credit of the fund and on the same day the 5 % bonds purchas- ed in the previous year were sold at 101 and accrued interest, and other investments were purchased as follows: Two 6% bonds of the same issue as those purchased in the — previous year at 105 and accrued interest. . Five 4% bonds of $1,000 each, Feb. 1 and Aug. 1, at 98 and accrued interest. The income from all investments wae regularly received and deposited, and the value of the 6% bonds purchased in 1905 was written down to conform to the value of the bonds of the same issue purchased in 19906 at the time of said latter purchase. Frame journal entires and write up the Sinking Fund ledger accounts showing the amount of the cash instalments, payable on both July ly S06 end July 1, 1907, and the status “or tie wee Fund at said dates. Ref. i ey 164 dog Sia a 78 OW ME ial pan inten hefed ) ans Ry a ca fast idee h bee itich | to otat f mt jl git bree rot Sa incll # xt of 9 oe a apvevn! o¢ of BE Sesneto of bugk sat : om ae of ef mortotons omoont oft goktitwose Balt ws sataomindent faunas griboeoowe ocd ‘to nogtonbet ¢ ie odak Bheaq enw 000,39 to sromtatentt feck oc 200 of 7 oles edaomtoovat aniwolfo? ont a. one art + no be i ve ay’. TAG, af of modoto0 bre L£ t2gh “ “id e pun ort ga .f .volf bas fait toe yi * ot sebbeaten - 4 ea esw peat ve a eee . , «ssionwg ebriod & 3 ent yeh aoe edd no Brie | i Seqroset pouoon! bas [OL #6 Sloe. otow tse) , | sawollot es Soasia mg oreW ha : oft mt bosadoteq eaodt ee oueek emee ite | K -tdotodnk berrt998 Sas oa 7 baa BO te .f 6Bth beta i adeet i989 000,19 cv q . Mee 4 pte sévtecer erestuaer eae ervend alone tts. m0" oy env A0OL at beesroted ebrod Re" ent to enloev o By 0 a erine afd to ehaod ent’ to ahs td cee ce | a ~szasomed tedtal ‘bthe, 16 haart ‘a megbal bat grtinte ond ay otttw! ae: no efdeveg ,ednenfatent Hasso a * ie i gatilnte oi} to eutade ont one g ] _ t F 4, ane ri A f wand Ps x ro Kat Nia . \ J y we t My ‘ ire) 18 f V ie DAn ie F Pd ee aalg® © el >| $ GL RNY tk) be ' . : ' a / y ' ind: ha A oes - ) : i a 6 7 a i . uy a” a) a | ¢ ; , A i Th pee ee itt eal ; ‘ i vis o_ 9 a |) ‘ i - we - , : i ' 7), Dae i _ n iy oi ia ' ‘ ( Sal “a ia ul + oe ae ee idee me te, - ed a i yt PROBLEM NO. 93. 78 (NeY. C.P.A. Examination) | The Virginia Coal Co. was originated on January 1, 1906, be- gan operations about January 7, 1906, and kept an ordinary set ‘of books ( by Couble entry) but did not close their accounts at the end of any fiscal year, After an examination and verification of all accounts stated in the trial balance they are accepted as correct, except that termed "Sinking Fund Payments" ($22,500). The mortgage securing bonds to the amount of $200,000 con- tains a sinking fund clause providing that the company shall deposit semi-annually with the Sinking Fund Trustee 5c per ton on all coal mined; such payments shall be mace to trustee during January and July of each year for the preceding six months! period. Money so deposited is to be applied, as soon as practic- able, to purchase bonds at not exceeding 115 and accrued interest; compensation and expenses of trustee are also to be paid from the Sinking Fund. Bonds, when redeemed, cennot be canceled but are to be held by trustee, who shall collect the semi-annual interest thereon and apply to the same purposes as the 5¢ per ton payments. ; Bonds are cated January 1, 1906, run for 20 years and bear interest at 6% per annum, payable January 1 and July 1 of each year. Payments to Sinking Fund Trustees (the General Trust Co.) have been as follows: July 27/06. Payment for 6 mo. ended 6/30/06, 5c per Pr UOe BOL OOO EGE «oa wes 0.0 8 ee oe ve 8 63900806 Jan. 24/07. Payment for 6 mo. ended 12/31/06, 5c per ton on 180,000 tong, .s-secsacicscraces oe M20 79B00R00 July 28/07. Payment for 6 mo. ended 6/30/07, Se per POM Tien SO, COC MOIS WAG wicket hee ae hae 9 5Q00,00 $22 , 500.00 On Janurary 30, 1908, the company paid to the General Trust Co. (S.F,Trustee) $5,500 for sinking Fund payment for the 6 mo. encec Dec, Gl, 1907, being 5c per ton on 210,000 ‘tons, The General Trust Co. submitted statement of receipts and Gisbursements for account of the Sinking Fund to date (January 31,1908) as follows: CASH RECEIVED TO DEC. 31/07 July 27/06. S.F. devosit for 6 mo. ended June 30,1906 MEO) Tis ee 0 Seb iw ie ete cata asta nie hoe one 8 - $ 6,000.00 gen. 5/Ot. ano? coupons on & bondase ilu... 05a 2 6 ’ 150.00 164 BY | 52 OU rear Cc (motsantmard AST Pi Yet) «of ,d0@f ,f Ytaunst ao hetenigkto Baw 400 £n00 atate tv on? ‘yon yradiote sa tqor bra ,OORL .¥ yiavast tee s mols sroqo 83. $8 Bd rerogo8 staitt e2olo tan BES gud (ytdro elfduo® Ye : Rang to + t89Y Inoelt ¥ fine odd hedete etnwools ‘fis * to notgsottixoy dae notsadimexs 18 1ea7A. ein gasoxe ,soer105 &4 02880) ers yous oonatad Letts odd ct - (008,89) “ednomyad eracuct gadiabe” bes -109 000.0080 to Jmvoms edt ot shad aniuoee | enenc tom eat. flare yaaqmoo oct tadys gathivoy: geusls peut antinte a entat not taq o@ eodeurT Savt gabinke ent Agiw vifauacs-imee FLeoqes gaitwd eeteris oF onan 6d ifate etaomvad pa shonin fs0o fis no ‘adinom xte aaphgoeg att tot teey fone to vinl Sas ersuael eottootg en moce cs ,betiqags ad of ef batteoqsh oe yerom -bott9g gtootetat bemyoos one “art anthesoxe yon t8 ehrod eescotmde of ,9ids suid mort Bheg ec of cele ots soteuty Yo asaneqxe bas nortseneqnoo arta tud helsonso od Jomaso ,bemeobet marty ,ebaos =. bau ant tiante travetat Laumte-Imse oft t+noffoo [fate ont sotenit wd Sled od ot e terant tee wot tog oc edt es aseogiyg ‘amec ot ot iit baa sooerett asad pas ersoy OS toT mut ,OOCL Qf yieuest pets abroad Hone to £ vinl daa £ ytsanel eldeysq mms <9q we te ait (.00 tewtT L[atonso si gestern? — nie ot ae sewolfo? es mood overt 6 94 eer bobrs .om mol saoavet .dO\Ts viet 00,000,080 @ . seceaveeeito? OOO,OSE Mo soq 98 “AOA LE\SL bebme .om 9 10% agen ah -TO\SS .8t 00,008, 7 vacn hata buns coueseahitoe ars Oaf ao aot | seq 98 ,WO\OE\e bebse .om 8 vor snamyad .TO\SS ylvt 00, 000.9 Pees eer ee ¢ FOS ae no mot sis , 00.008 , S&¢ por ann arartsveetapns setae ee ¢our? Lacocen ot of Sieg vitaecnecio edt .e0ef ‘et qietunst. ou 8 od, OT JHOMYST bast gaivake tot 008 ae 29TeK eros OO0,0Lf mo sot tq od sammie Oe, i here etotoost to taemetate bot imdg a yreunet,) et85 of brs caus Gh ont to. FOAL .Oud OF cisaen a 300f, 08 sant Hebe .om 2 tot dhegced GostbO® # dvetrnasn sane ey RBM oan 00,0ef i kaa ones mo enoquoe i Jan, 24/07. S.F. deposit for 6 mo. ended Dec. 31, 1907, L60, 0000 fone Bh eis bien cis an July 3/07, July/O7 coupons on 12 bondS,e.eersseecees July 28/07. S.F. deposit for 6 mo. ended June 30/07, 180,000: Gone Ati Big as salah ols O on + woO\rs .oad OT amysmaeAvacrd HBA0 — 0,008.8 B vices onesie eOEd ts 000.4 = bemosbot ebaod 08.31 RPERERRT RN ecomnnty 08.8 ene eee page ceeis ar etme Senne oe 00.088,.2 @ ’ | “Bie ete ; ybemeebor ebro TO\SL ot 00.088 44 sald eee ts 000, 4 nf Pl aa ae 00.023,8 & Sete smsteeae Ps rant. ; | Ah 1 + G oeere & . oa.tL ne eee emobee tomod 00, OLT,F 08.59 } e's 6b le on gene poeHTooA 3 shomsobet ebaod .WO\SL eastA | 0 5 t “ 00s OBR RG st ee re 600.2 ; - > » Oo : a de ot ovvoee®e ASG e 7 ‘ : teabamod. - 00.088 - ew kebreeaveeee rene 00.085,8 00, OF [ eeebieaneee eee ~teotednt bestooA ; 4 ; OO.00L @.-ese0,09teutt To notteemeqmod .TO\LE .ood - 00,06f 00.08 eee s0808 evreoe e+ >. eoegnteldievbA 7" te 00,028 ,SS4 00.08f ¢ feet ,99d soeteutt to ebrad at eonaisd desd an , egty ,800L , visual at bovt * : YO\LE .990 Bobms om 8 tor? tieoqed .Tee 00,008,4 % rE rr 8 enot aan S 00.039 oa vee tee ae sinod §8 mo anoqvo® BO0\ fat 00,008.68 90,00 2 BO\MLE\SL of sensiad m0 pewolfe teotosal 00,028.29 | nae | | oft to elood oft no yiteqotq esate of eolttne etaqotT] senottosanett ard geiiynte {£2 .00 Le09 aintgilv — = ' «3-88 Reet = : nt ete a ut ny * oh ie = ‘ : } , . | i ; i ° , i? F af q PA th 5 ” ©. % hs i or sai Ny 4 as Ie Ban ae nies a 7) olps i v ‘ .f M ie : bf af - a om e : » se 1 ait) ' : ai joa F ia ‘ hs ‘ Deny, Cie * . : » vs 4 ; 2 Pas: ~' pat ace) ie an fo. one ie + oi thls uF 7 ay ee ay Be mee Limit ce u r 5 on st ‘ : Ros ‘ iy sy . bd ’ ye A Vv i : ‘ j Ki : " 4 to 4 a j ) f 7 ae as i iv, ] ales 7 ~y # ‘ ha’ a) > t é : Hehe te it Ur 4 FT) i (fe S - ry aA rT PROBLEM NO. 95 81 (American Institute of Accountants Examination) Frame any entries necessary to record the action of the directors as it appears in the minutes of the meeting of August, 15, 191", of which the following is a synopsis, and the action of the officers taken pursuant to authority conferred on them by such minutes: The treasurer reported that the profits for the year as aucited amounted to $59,287.00. Voted that a dividend of 940,000.00 be paid on October 1 to the stockholders of record September 15 and that $10,000.00 of the profits be appropriated as a reserve for belief of employees disabled while in the service of the United States and invested in Liberty Bonds. The treasurer reported that he had an offer of $1,000.00 in settlement of a debt of $3,000.00 of the A. B. D. Company, which had been written off as irrecoverable in 1914, He was author- izéa to *Aecept ‘the offer “in full settlement, The president reported that a firm of bankers had offered to purchase $200,000.00 of the company's twenty-year 5 percent bonds to be cated October 1, 1917, at 93 and accrued interest. He was authorized to accept the offer and deliver bonds on that date. The presicent reported that he had received tenders for new building planned in the amount of $185,000.00. He was author- izec to execute 4 contract: accordingly. 164 eae ae -otf He EIEOG Bit {hottantmaxa asantayoo oA to ey ont to mottos ott bxooo Peers ooo eeRagne yrs ont f203KA To Battoom odd 10 eetumtm ont nt ove ‘nortes oft bua ,eteqonye & at antwollot oat moliw Yo ment ro herretaoes Yi trod su ot Rea i. eteol t’ ar ga toy ont xo? etitond edt tact bed oY TSTUesett o to Srebivibh » tent SetoV .00.%eS, 088 o¢ bodauome be btoos: to eisbfLorfoote off OF £ tedoto0 mo biea od OC betsitroxgas ed etttow oft Yo 00.600,0f8 tand Baa af” ott nt oLtriw beldseth | tk to eifed tot evisest s ex -eono8 ytvedid mt heteevnt ba sodst2 hediny eit to eoivuse mi 00.000. £8 Yo setto as bad an tat bettoqet ‘tetvasots edt 5 5 sly. eregnod -< .4 .A sdt Yo 00,000,c9 to gdeb s to tnemolttoe -roddun eaw O89 fl at oldarevosert? be Tlo sedtiaw meed bad | staomeltiee Iful at toTto eft tqs008 oF bost horetio Bad evtsiinad to met, a tert bot et Sie ; dreoteg ¢ tsevevinews a yasqmnos edd a= bt 00,0084 “aan OF steetotnt beyioos bos €@ fe .ViCL .f a haan ao ebtod sevileh fas t8rto ort se00n of & wea “ot erebnos bevieoss bat on tans irae gine 1 oo ~toltua esw eH .00,000,88f8 to tnwoms ent at bo. | fad oe sVignt bitoses tosta09 8 ejueex%e ot Sest bal PROBLEM NO. 96. 82 (N.Y. C.P.A. Examination) The Great northern manufacturing was incorporated under the laws of the state of New Jersey, February 1, 1899, with a capital stock of $10,000,000, consisting of $4,500,000, (45,000 shares of $100 each) preferred 7% non-cumulative stock, and $5,500,000 (56,000 shares of $100 each) of common atock.On the same date $2,000 of the common stock was subscribed for at par as follows: By John Smith, 2 shares, .¢sesvees eo BOO "Henry Brown, 4 shares,..s-eserce 400 U Jonne Dag poe Shared), .. san cea , 400 Henry Hodman, S shares; sueeees 300 “Wie odman, 7 shares, ..iseeb ave 700 TObAlL peer scccccrercsveres $ 2,000 On February 4, 1899, these subscribers paid in to the com- pany the amount of their subseriptions, and stock was issued to them. February 15, the balance of the authorized capital stock of the company, both preferred and common, was issued by resue tUUCLOn Of the boare of directors, to John Mayacott, for and in consideration of $750,000 in cash and 12 manufacturing plants. An inventory of the property purchased, made by authorized representatives of the company, resulted in the following apprais- ed valuations on the various plants and the stocks on hand: CBEST Se a SS ee ~ FACTORIES 3 supplies [llerchandise {Real estate| Buildings wach igery Sry ae .|$ 450,000 |$ 95,000 j# 195,000 1% 20,000 |$ 98,000 eee ie 211,000 44,000 130,000 10,000 84,000 Bt eetele tial 495,000 38,500 475,000 11,000 62,000 POL hs 304,000 15,000 924,000 13,000 48,000 Pa 171,000 32,750 184,000 ; 14,500 89,000 ce See 86,500 81,000 60,000 17,750 26,000 eae t pds 47,250 44,000 30,000 32,500 34,000 ee sale 98,000 35,750 20,000 14,600 62,000 ae ae 101,250 11,000 10,000 17,200 11,000 De ete sis a 37,000 13,000 11,000 19,200 35,000 es ae 346,000 49,000 14,000 75,000 71,000 epee 121,000 67,000 37,000 34 ,'750 44,000 Totals,. }$2,448,000 | 526,000 | #2090, 000 {9278,500 |g664,000 ee Open tne accounts of the company so that the result of the operation of each factory will be known at the end of the company's 164 88 é \ eel itcant 2ae OU MUIGOAL ~ { | a a i , z { 000,002,828 Sne .voote evitsiumroenon XT 00058 # avaevenetdbomgenueee b ~9od suiot seo vee he eg eeteia &, _ tambon vine arte one e * «ceo eds ¥ ,ianboHr oft accesee beneahaka saeueerer. woo ett of mt Bksq exoditosdue seeds eel ot Boveet enw Moose baa ,enoktqiveedue thers soodve [stiqaso besinoriive {dope GOL 7 i a i i " . . fis i 4 1 UL re i hie. ’ ; > wiasidet a0 |. to teuvome odd yusg a ont to somsted ont ,2L yrsvrdet meds a -yeet vd beveak eaw .mommos bas Seite Tsig dtod ,ysaqmoo ec to at bee tot ,.St00% ~etoalq antussost .M nefol ot ,etotsetts to bisod ect To sotsul A saem Sf baa deso at Q00,087% lo moisasebienco — s hestiorten yo ebam ,beearlorwg ytxeqoiq ent To yrotnevil mA 000, S852} 002, eNS4 = en aed ae eaiercqs gntwoffe? odd mt bediveo™ :faed ao sadoote oft Sas eins eft to tfucet orld e'ymeqnos eft to bne or vyasqmoo oft to eevitasdneasiqet ta evoltey ond mo anottautey be | Letters: ) ar eros oam} SBAtPEtHS etatee Snonboctbhusdorell| pebtoane bes QeT AOToOAe ; +059 : 000,82 $| 900,08 ¢] 000,aef 3) 000,8@ $] 000,082 G)...---0cA F 600,88 | 000,0£ | 000,08! 000,52 G00, £19 [weswanes 000.838 | O00,f£ | 000,e%D 008 88 O00 .ae0 i ladewaen 900.83 | 000,8£ | 000,58 000,21 COO,08 deseseeus ; 000,03 | 008,5£ | 000,98f | O8t,Sé O00. £0: “ite wneeee 000,98 } Oat,"L | 000,08 000,18 008,98 ileal : . OOO, de 004 ~8é 000 , 0& 000, bd Oea, TS evee eae , O00 , 83 006, 2£ 900,08 O89 , oe : O00, 82 “een ewe ; o00.ff | 08,7 | 000,0L 000, if ee ee CEO O00 , SE 00s, ef 000,11 000 ,EL 000, : wvereyy Fk . 600,f° 000,87 000 , Af 000, ¢5 600, O85 ee er ereg ; 000 , bP Oey , dS O00 TS a ' i Bes,> one ql . 000 , 020,34 — tatty o8 Yasqmo '¢ te awomdl ed f dbOL 83 fiscal year. The books of the company are not to show the appraised valuation placed on the real estate, buildings, tools, machinery, etc., by factories, but in one amount only; and it is desired that the account include any expenditure incurred by the company for coodwill, ete, Make ovening entries in cash book, journal and ledger, cover- ing in full the above transactions. 164 Wt " as a iva i a a i tae ’ i a oe. ia Rigs ne i. aa i Nd ‘ Y igh aa) «= | it a a Ee a oe ; 4 oni eel ,; yr aera ¥ hi 7 ee aK rar) rat hi My ae it ae iin aes: uF | er ok ae a | ) eel fo ) * nly? oy ee } Ny fi te »d 4 3 ; 4 Me 7 ba ‘ i" = vi al » a ' Ay ; . io F i ip A a ») wt 4 i £3. 4 they j a ] é i , « ; , | are: i ’ a ,o bid i: a. PROBLEM NO. 97 84 (N.Y. C.P.A. Examination) The American gas light company had operated a gas plant since the beginning of the year 1896. For the purpose of acquiring this industry, the National gas company was organized April l, 1899, with a capital of $100,000, and after purchasing all of the capital stock of the American company, issued $100,000 of first mortgage 6% gold bonds, dated April 1, 1899, due April 1, 1929, interest payable January 1, and July 1 of each year. June 30, 1899, the two companies were united by a certificate of merger, anc new books were opened. The accounts of the American gas light company had not been Closed at any time during that company's existence, and at the date of the merger, stood as follows: Land, buildings,...) | Cani tal oy area. »» $ 50,000.00 Machinery,....«-..) $ 82,560,73. Bills payable,...... 5,000.00 Maing and Accounts payable,... 2,679.81 franchises,.....) Gas ACCOUNT Es vss «+6 157,683.53 Materials and tools, 1,856.50 Coké accountuea sss 6,210.69 Coal (including Tar ACCOUNGyewes ss 4s 4,500.54 PHELCRU Tents 3 012 ar 47,540.45 TGs @ Wis alk sie 4 0k 64 8 Di, obs to REDAAS jews ais 4 oe 0-0 135,872.46 Water and other BOL LCS sla tied wie 5,369.39 Superintencence,... 5,500.00 Salaries (clerks and collectors),. 5,600.00 Office exvenses,... 2,100.00 VIB ULENOG ge a's aes © 2 1,455.00 TAZOS pcucnnsecasive 4,297.410 THEGTEAC ace aei se ae 1,450.40 MAG os ab ois wees 2,051 547 Consumer's accounts, 3,210.44 Other Acc's FECCLVADIE, oc ne ss 2,121,90 $226,074.37 | $226,074.37 The intentory was as follows: eas bctala se ale Se hese Pk iets $400 Bas Fae ae ee sracier. ra ta taels cae ‘ 150 a ee Ves ee arsiaes Be 100 $650 In acquiring the stock of the American company, paying organization expenses,etc., the National company usec all its Capital stock and $90,000 first mortgage bonds, holding in reserve $10,000 of bonds for improvements. 164 : o a . F : ta a gy 5 Lil : [aye y ee wat . 4 1¥ _ } i $3 Fe Jon ony 3 | sedio bae wets va Ge. 935 ,e secseovegbOhiogne = | 00,.006,¢ owe HOME Uh Fak ; Te eioto) eettaiss © 00.008, +. (etotool loo Bra 00.00L,8 eee . 2oarecxs ao 8120 p 2 00,éc),f sescesese SORE IUENL : OL. TES, 2 pe eeesesecnees ge GORBT aa Ob,065,f ebecceseceg F BOOT i VS.£3S,S cone eeeras ee gO bd,0L8,6 «etourooos oc! qempencd | e'ooA tonto Oe is : $ ats reve, oidav isnot | BE. STO .9SS5 ; TE .2T0, 0828 rewolfet ea aaw wiodmetak oft 00h? POPPerirrirr rr Tre Te ee ie é O6L +t 0 ON ed ee Seas wemeD 0634 22 am ch edie cic 4.5 || halal Mall gatvad yyascioo anottana edd to soo 2 ort att ({5 boau qnaqmoo Lanoital odd ,.9d0 .ecenog evisest mi gntolod ,.abnod osagdiom doxtt 100,,08% edcomovoramel te . Pea pss ie ds mers wer _ + 85 Make the necessary journel entries to open the books of the new company, and prepare a balance sheet dated June 30, 1899. Also prepere a profit and loss account showing the Gun aA ennual results i: the operations of the old company. Ref Py 9-1, 164 a to sean eek 1008L ,08 saute PROBLEM NO. 98. 86 (N.Y. C. Pe A. Examination) he Smith brewing company with $1,000,000 capital stock, The Young brewing company with $500,000 capital stock, and the Star brewery with $400,000 capital stock, agree to consolidate as the Universal brewing corporation, the new company to buy all the properties of the old companies, at a valuation to be fixed by appraisal, payment therefor to be made in full-paid stock of the hew company, the old companies to pay off their own indebtedness, The appraised values of the old companies are as follows: hee spr ikaempennnst cee tepineymreememncrresiagt easement ninipesintecet settee wkemnihe—nmeceenintonttics Riana immantis. inant: ansehen Seen pea eN Tw aaaap Mma eRSESTIESETen haw, ee sk Sota rete SLT eee) CASAS = ete Sata SSN | nnee eee prepara porte engep aapaaer caiman peace ARES GADENINSTIT ' | Horses | + Bills wagons |Office jreceiva- | and furni- harnessi ture buildings Cash Smith, | $680,000 | 390,000 $15,000:1510,000 | $4,000 |$ $1,100,000 Young,} 327,000 | 160,000} 3,000; 6,000 3,000 500 , 000 Star,.| 126,000 71,000}; 1,000! 1,500 200 , 000 Total appraised value,.... leeaieeneeteaeh &1,800,000 ees On this valuation, the Universal brewing corporation issueéu $2,000,000 of stock, shares $100 each, which was divided pro rata among tne old companies on the basis of their appraised value, no fractional shares of stock to be issued, odd amounts to be paid old companies in cash. Give journal entries necessary to set up property accounts and eredit old companies with their pro rata on books of the new company. At the time of the consolidation the ledger accounts of the Star brewing were as follows: Real estate and Butifiness cscs iweee (250,000 Capital, eaten. «<<... . $400,000 Se ee ee eee a P4647,000 Bills Payedle, sss. 50,000 2 a ea Sere ae ee eae 1,000 . Accounts payable,.... 51,000 Horses,wagons and — TITERS , o6 sss 2 views 1,800 Office furniture,..... 1,200 501,000 $501,000 Make the proper journal entires to liquidate in stock of the new company the liabilities other than capital stock, to apportion the remaining stock and cash, and to close the books of the Star brewery. Ref. ll» 5, 164 of ; ty “82 OW a ioe (a oc? ,Soote Lattgno 000,000.18 dtiw 9 ankweand nate oft bre woote iatiqas pedi: atiw yeas eft ua etshtfocnon of oetgs .oote Lsttqas O00. edt Ife yudc of yaaqnoo wen end ,noltatogtoS Bf. Yi bexk? ed of aottsuisv 2 ts ,eetmagmoon blo oF To et ert to rxloode Hbiaq+Lfint mt ebsam ed of tote tejit trnemyad | steombesdo dat nwo tlodt Tio ys ot ac tnaqnos ae ont 4 eV pre a me | eo00F ay | prom lenittOl|enogew | effta | atates. | beet brs eavisoet] - i 5Sae {atoT | ouyvt i econmtaed ofc § ‘Aiead onntoftud | mT wean e MURR ET een ralgy too-man canna a 000,001, 131 000, £8} 000,49 . 600,008" "|.000,L } 000, | 000.8 | 000.8 900,098 _ joo8 oor | | a00! 000 ,0L8/ 000,817] 000,098%! 000.0883} .attme G00.0dL | O00, NSE I gmoy - o00,f" | 000,dSf |. . mate n00, 908 5 te Rate li neve Lishtee anneal peahatns faito?t merce: we pints See ne ears = Sasa yourel nots¢siogqtoo satweid [neievial ord (to itas lav a ictt ‘90 , etary otg Sobivib caw fo teiw wiose OOLG aetede yoot2 To 000,000,895 om ,eulav beetertoqe tted? to efesd edd mo eginscmoo 310 Sng gnoms bisa ad of etrsyoma Bho ,berreek sd od Moote to eetare Laeaotsios.1t eae, “eflz8o nt eeiuagmoo DLo | brs etnuonos yirego tq qu tex Pr yisessoon solttes Larrvog ‘evita ‘a want ert to afood mo asat o1g tlecd dotw ec inaqMos 5fo tfLbeto “" eYaAsoros eft to iceieben regbet = Fae agtgebtl OaMoD ‘est Lo emit off 2A | :ewollot es etew yniwend sete Ses states Laon 000.0089 seeesseghoOde ,fatiqad 000, 088% obese fo nbeg SQRERE EO 000,08 | receees e GLCRBYBC eff{ra 600, 73S seecdeesc@uheneeeqe Gels 000.2 ...e,eldaysq etasoo9A 000,f ese e ease newer seen gilBBO ae Ss efogeaw,ece tol i 008. £ 0 abide pid ae ey WROM Ast ; al a4 reo a iasiabarahed sada. f 000, £08¢ | 900, £088 i Ais sift to Hoote af esabiuptl ot esvitae Lenmriwe “nego: ocd ovat ieee motesoqqe of .foote [stiqss asit terto asititte If aris YaRqmos won © ‘i sete adt to. efood eft oxofo ot bre lesa iow yvoote ae PROBLEM NO. 99. 9” (N.Y. C. P. A. Examination) Three manufacturers, each having an independent business and wishing to effect a consolidation of their respective interests, organized The United States Manufacturing Corporation, with an authorized capital stock of $1,500,000, consisting of 7,500 shares of preferred stock and 7,500 shares of common stock of $100 each. They sell to the new company all of their real estate, builcings, machinery, tools, fixtures, merchandise and supplies, in consiceration of $1,500,000, and agree to accept in payment $750,000 of preferred and $750,;00 of common stock of The United States Manufacturing Corporation at par. The vendors donate to the treasury of the company $150,000 of preferred stock and $150,000 of common stock to provide for working capital. The company sells $100,000 of its preferred stock in. the treasury for 80% cash, giving a bonus to the purchaser of 20% in common stock. For the purpose of raising additional funds for improvements and additions to plant, the company mortgages its real estate and buiicings, as security for an issue of bonds amounts to $250,000. These bonds the company sells to bankers at 90%, giving as e bonus 10% of preferred stock and 20% of common stock. Draft entries to exoress correctly the above transactions on the books of the corporation, and prepare a statement of assets and liabilities of the company. Ref, Vaal, 164 a Win AS ee so) Oe te AE, So | r an a 0 ‘ y n Fe! i 7 , 7 ' | RAL ale toa ee eae fans $A wee 0G 07 | Tes i \ ; . : : ) , ¥ or Ps oe {nottentmaxd .A +4 00 6¥. RADE, ; a ax) hy) ee: “ban ceenkend taohaeqebet an ative foes ated 068.8 to anitelenos Sbekaae bed ip to Moote Lae i .xood2 momnoo mi ROS to teecrowg ot of esmod s gaivig ateso X etnemevorrgmt “ot ebetrt fsnottthbsa gnietar to Beod tse es¢ 10% | stateo [ae ett eenagtrom yreames eft .taaiq o¢ emoltibds ons = ot etasoms ebnod to eueet m6 to? ytiaroes es ,gexsnioifud Bae eRe te etorinsd’ ot elloe Yosatios eis abood seedT .000,088¢ Pia «ioote2 mocero9 to ROS bas vYoote howreteig to ROL eunod a ee gntvig no enoltosene tt ovods ert yLtoertros esetene ot eotctne Sfetd ateses Yo #aemetate s ersqetg San ,motsatogies Sct Yo elood oft - ! | eYaaqmos ety To eorstiidnds Snes at | | Sekt ston - bal PROBLEM NO. 100. 88 (N.Y. C.P.A,. Examination) A company is incorporated for the purpose of acquiring and operating the plants and goodwill of pire previously indepencent. concerns, the authorized capital being $1,000,000, half of which © is common stock anc half perferred rosie The total stock and $100,000 are issued to the vendor, in payment of the several properties acquirec. through him. The vencor disposes of $200,000 of perferred stock to bankers at par with a bonus of one share of common stoc! for cach two shares of perferred stock, and he also sells $400,000 of common stock at 50 per cent. The prices pnid by the vendor for the three plants acquired are 1, $100,000, 2, $200,000, and 3, $300,000, each,of which is © payable one neif in nreferred stock and one half in cash. The properties are found to be in a "rundown" condition, and the company expends during the first year $75,000 in renewals and repairs to bring tne plant to a state of efficiency, Wh ay « } which is charged LO Tevenue, On a review of the accounts it appears that only &15, 000 -of gaia outiey was for repincement of current weer and. tear and — $60,000 is accordingly transferred to the Plant account in the proportion of 1, $30,000, 2, $20,000 and 3S, $10,000. For the nurpose of determining and separately stating the intrinsic plant values and goodwill after the additional outlay, the properties were appraised under four general divisions and the results of the apvoraisement were as follows: I IT TIL Meee gu a alain Rl On Le eee oes «© 25,000 §=§ 60,000) $85,000 ee re Teer se BN dere Vata’ Soule 75,000 100 ,000 175,000 © Ste eres teres ee te ele cars at roan a 2,000 5,000 7,000 Ree iet aa eae ste 4:9 Nae? ae 8,000 18,000 25,000 AEA eG tad davde see. SLIGOEO” (B1SS, 000+. Se92,000 Frame the journal entries necessary to open the books of the company in accordance with the abave statement, Ref. e1l-4, nN r% i i - ‘ye ity Mike. i i ye y ¥ , ge qe “oor .om wae ye | | (aobtantnaxd hs yom anitiupos to osoqiv¢ sit tot Sets ¢ Snoedasqehbat yletotvesq sous to These? doit to tLad .000,000,f3 anted Istiqno ys - Sera stoote Latot art piak bowietteq tied oan fexavea oft to sromysg atk oe oct ot & ; ee)?! dgvotit ; etaiuncd of foote Howie L19q , to 000,0084% io acatnlae ows M990 tol loota sommoo-lo Saere ono to eunod.2 | 3 sormmoo to 000.0082 elfoe oele ad bas aah” hoxi0e7 vq 1 Rececndt ae «tn09 nog ¢ ood. si bettupes etaniq cont ont t0% -wigal s ont es se on ted et dotdw to dose ,000,0088 ,.& dna etn efead at Lad sao brits Iaote (Sail var al tind BLO ole \ ‘ DAA. nottibaen "rerobasser” o mt ed o¢ Snwot sta soldasqora neers Bas eLewornon at 000,208 teoy gett? of¢. antush eoraqxe yorqmoo. eat ‘ Hoidw to {fn eyousto rite 10 esate 2 oF tantq o's qanind o¢ evinqes °. - eounevet of begtarto bad me; ‘Yo 900 anh yino tort ensodan: + edmuooor oft to wolves 2 n0- ; bar thet Sar tnew tnettue to taemeertqger tol eaw yoltuo bise aft mt fnuooon tact ont ot botroteantt yLambbtoocs ef 000,08G mas .000,0f% ,& has 000,080 .8 ,000 084 ai 10 soksuogetq oft antirte ylodrisqea San yoinimteates Yo eeogiue sdt to% ! ayefdvo Lanottthbs oft wosts LLiwhoog bua eeulev taniq ofeait#at : Heo enoletvth fexenes sv0ot toon boetorgan etow eeltiegotq ort a rawolfort os etow es edt to rnin s oe 2 * TTT tI of LR EN RR ORR ITER UR ~- 000,48 3 006 , 06 % 000,22 Fs vacb aw vip iba ergo eae 000, aTL 000 ,.00L ©00,c¥ eee ee ee | 000, 900, ¢ 600,$. bes bees G0 Nas 80. bade eee ada se 060,¢S 000, of 000,86 Pre eeeneescereeseeereeeeneneead OOO,Se8$ 000,289 000,01f3 a a eit Yo efood ort mono od ytaveenen kolttne Lone stnomotate evods oft. Astw oortal : PROBLEM NO. 101. 89 (N.Y. C.P.A. Examination) The composition of the values of the books of the three old compsnies absorbed by the new company as stated in the foregoing problem were; Assets I IL ¥II PPOPerbty Old, .cceesceccceccccsse $80,000 $163,000 $282,000 BOOK Accounts, nok ehad, vse. vees's 1,000 3,000 5,000 $81,000 $166,000 $287,000 Liabilities Bills and accounts settled by ICY CORTON a a ss 0s ae a% en, . $49,000 $100,000 $189,000 Re eis Ws 6s 6 66 ¥ bins oe econ 2,000 6,000 8,000 SS) tle tcl ll. S04 ae laa ea , | eo Cum 60, 000 90,000 ° #81,000 $166,000 $287,000 Frame the journal entries for closing the books of the old companies accorcing to the above stated values. Ref. 21-5, 164 88 boo seit ext to ertood edt Yo pee anne ont mi botate aA ‘Ses wor ort Tig 020, S883 .000,4 re on0,Tesé —— a Re NA emma 000,082 900 ,.0€ 000, Tes% ee LOL OTOL ON —~ A 106 9H bio ofF To exood aay gnteols sot peepee ry .29uteav hotete svods See re f rT i @ evad y u%, a ; | Wty A ef i 7 cs as 0 7), ee sie be oo oe : a 4 siphh } ROL eae ut . My ‘@) aa ni fates 5 ny ES a i, oe vib, ul) iy, “iN oe i! _ home f y oh ——F, 4 \ ) Jha iy ) 7 : | (bn plese veh 4 P hi Py i. don? é, Y% co " a ; i 4 ey Ani Wyse 0 .7 > | eee hd “perdtrroats a “ df boltdoe atayooon bas isc De, Sa ine et ee va Sat eens were et ( it was bth. ‘0! 4 tktomwg bob? PEeeeCr Te TT ie Dae oul \ “4 PROBLEM NO. 102. 90 (N.Y. C.P.A. Examination) A corporation is formed with, a capital stock of $500,000 (of which $200,000 is preferred and $300,000 is common stock) to a¢- quire and consolidate three existing corporations cesignated as Ar Band C and having the following status respectively: Boolk Accounts Liabilities Surplus Deficit Capital PAS. Gros jun «GT Coo #$ 56,000 $15,000 $100 , O00 Betine Ashen, 266.000 80,000 $5 , 000 90,000 ean inna » 108,000 47,000 6,000 55,000 $444,000 $183,000 $21,000 $5,000 $245,000 See The several vendor companies contract with the promoter to sell their assets, excluding cash funds as above stated and in- cluding goodwill, at the following prices respectively, VALS sith $125,000, B $100,000, C $¥%5,000, paybale one half in cash and one halt in preferred s toc: to be issued therefor by the new company, which is also to assume all outstanding obligations. The promoter or vendor contracts with the new or vendee com- pany to acquire the several proverties SR) Se wopthe Lisbilities stetec and to provide an aéditional wor] fing capital of $100,000 cash, and to take in payment therefor the entire authorized capital stock of the new company, out of which the subscribing incorporators and directors will acquire their stock by purchase from the underwriters. The common stock is underwritten by bankers at 80% with bonus of one share of preferred to each 10 ahares of common stock. The bankers are also to tale an adcitional $10,000 of preferred stock at par, as part of their agreement. a Frame the opening entries and balence sheet of the vendee company, showing tne costs respectively of assets, gooce will and organization expense on the assumotion that the terms of the several contracts are lmnown to all the ‘parties concerned and form the basis of the initial values established. b Frame closing entries of "A" Company, showing cancellation of stock and distribution of proceeds of sale among stockholders. ¢ Show promoter's compensation or profit for effecting the consolidation. Ref. 24-5, 164 Yo) 900 N02" to voote Iatiqss a Atiw boar ot “9 oF lusose common ef 000,0083 bua bet10tetg a8 botanales> enoitarogies gnttvelxe sonit etal . :yLovltoogesn eudate ene nial fatiqnd siolied gulqrne gots ttidatd 000, 0054 000, 8£8... 000,08 ¢ : | “O00 ,0@ 000,32 000,08 f ee ee id 990 090,96 00049» 900, 7a 000,80f | et uate ook 900, 28s 000,84 900, £8% 900,581 000.2000 I et Nahin — mvt ee ee eM seen reno’ oF *tetonotq ed? att denies setargmoa: nObASV fenovee ont ent Oo béetste svoda as ebauvt dano gathbufoxs ,eteees sleds tfom A sstv ,ylovifooqeet eestiq aatwollot edt ds ,iitvSoog gatiulo eno ban dere ok tied ono ofedvag ,000,8F¢ 9 ,000,00f9 @ ,000, ef auneqmos wen ait yd tototers Howeel od oF sloese Rorie 191g ak: £ eetottsylido a i haat {fis one BS oF ons et ses amici Woo. sehrev to wea odd dtiv evar ntado %odrev to xotoworg: edt seltifidett eft ot stootdye podegydonrinye Ietevee oft attupos oF yasq 000 .00L8 to Istiqeo gaidsow Lsmotdibes as ebivem of Sam Sedste ‘heatvondus ottdne ont totetett troorvsd af exist of Gris ‘Sat griditoeduve oft dotdw to to ,yYangqmos wes edd To. Noote fadtgs eesdowg yd Noote thers at all Lifw anosoexks bare eosnr0qr0ac | Th » etod Ewe bets ont sunod dtiw &03 tn eteinad oi tab shred et Hooda monroe on? -ofT .xoote momaod to aortas, OL dors ot bowietewy to etendea ono To Moose vial alin, to 000,0L2 ‘Isnotst5b9 ns ele? of oels ets exedand _ a tmomeongs ttod? .to die as ying 32 sehnov etd to foede gonnlad Brio cotitne: aninsqo ont oman nh 003 .ttoeas to ylovitosqeet efeoo one gaiwore eVAsGmes ond tent moldcomees oft mo Semenxe aotinstaraio baa fiiw — | eit {ia ot nwom! ote efoaitnos inteves odd. to amet fateink oft to elead edt miot one beateoneo eeltisg | -bodatlidstee veuley motielfonnes antwote .yasqmed WAM 6 to aotttae anteolo orn g gaome oise to ehoooore ts notdudiite th has axoote to. : | oe ods Qnises"th tot strong no sotspenaqno®: 2 vodor ee ACW, ei tte tall Praia aay int dah i LA ES NG a A ea PROBLEM NO. 103. ol (N.Y. C.P.A. Examination) A B acquires all the shares of the capital stocl of the Vendor Water Company, and in order to reorganize it, forms the Purchaser Water Company with an authorized capital stock of $1,000,000 civiced into 3500, OOO common and $500,000 preferred stock. Bonés amounting to $1,000,000 are also authorized by the Purchaser Company. A contract is executed between A B individ» ally and the Vendor Water Company by which the latter, for a cash consiceration, transfers to A B its property subject to its rene cebts. A B then sells the property acquired from the Vencor Water Company to the Purchaser Water Company for the sum of $1, 999, 000 payable $1,000,000 in bonds, $500,000 in preferred stocic and $409,000 in comrion stoc!: of the Purchaser Water Company. The Purchaser Company also agrees to pay all the existing debts of the Vendor Company. The boaré of directors of the Purchaser Company appraises the acquired plant at a valuation equal to the difference between the sum paic for the total assets of the old company plus liabilities assumed and the value of the assets acquired exclusive of the plant. The Purchaser Company receives in its treasury $1,000 cash from A B for 10 shares of stock issued. Mrame the opening journal and cash book entries of the Pure chaser Water Company, and prepare the balance sheet of the Pure chaser Company from the entires, : The balance sheet of the Vencor Company on the date of the transfer was as follows: ASSETS PAGS trartlesuitecncies thyas's shuteig abated By. i . | cag fe ook BOE Olt UETAONT 10 i a (nottsntmexd ATO Xe) att to sisvote Isticso ect te so-rade/ Mt {18 eexttupos 4 A edd enriot ,¢f ssinsacoot ot tebt0 ak Bre , Tasqno’ Bacon one to Hoots (atiqse Desfrorftvs as dt tw yoeqned sete | herreterg CO0,0022 base aommos 000,0088 oF OFmE SHEDEVES OOO ,000 . £7 sit yd hosttodtus osfs one 000,000, 1% o¢ an a | ebivibat @ A moowied bedvooxe ef dostén6e A sy¥nmaqmod teesdotwd a tot ,tedtel ode dsidw vd yasquoed tet¢av! ‘woneed edt bee re : agt og soot due yir1scong esti G A @t steltenaty toltatedlenoo | adt mort henivpos yoreco tg ott effec medd a A eddies 3a: mye ont tot vraqmod. rota “sesdotwd sft of [Priory ies hoxretexq mi 000, 0088 ae 000, FIL POs et ones we HNe big Mane eNiele 6d WieeieegMMO: | ie. OOO, 8 teres ererereeeneneveas e Sidaviszey Beton — Pay - 000,28 i —« , nevineutsecccvnevess SLGBViedSet sinioood = = 000, dé J Scere cdn set ewan see NOene ot es{lsineseM . 000, f Cover eseesseeweuseve s SOMES DSerti¢gxent - 7 ecton mo sonavba mai Siag teetetmI 000, 8 - : Cesare ener eres een steeeee seen OlOByag | 028 + y(etoquos yaq ot tteoqe>s) yasqmoo sesrT 000,08 renteeescane ewe BOLT BCMOO “edtto to meets O28 ,082, £28 crore ssemesee eee wg Meeees. {stoT 883 ,6 eee Ee PPE er eben! SRN Sree : R00, 502, L¢ ‘ruprsese chy Sinaia ae aaa PAITIIIAALI Ma HOOPS TATTTAO .. orn 000, 900 8 .. ts «ht ha oe eee Lstiqsd 000,008" ++ bcos 4 sisi Sih waeiaiaant ss += ani aes "i 000, 0é8L TPM tel ght 5 ka da A ats 93 MAUROMNS DAUAGLO, asi. cscuesetevas saneesrees & 706,000 Meter GCOPGsits, ... wns as core etn «ie 2 aces “ 1,848 AGGruec interest orn bonds, cscs se sanevsgets 5,000 POUNCE DATRD1LG » «0 0.c08 eniecnaene simure aera 250 peecrve Tor bad GCHUS sc enceeeys de yee . 7,000 Reserve for depreciation of plant, a e{dsyec eestor otnt bebivib .,00O arly to etdoes nattsaolt gt 000,000.19 Fo me ait vor ,000,0ey oldayvag etevosos Ore ,000,30 nt 900.0068 bas aoots nosmog mi 000,C@2@ ,tfeso at 000,f¢ sidsaysq 000, 2f18 to asdeh oft ¥sq of ese tga yascmng eat eHpote bowietotG hetshifoened edt yd Settosneval ets oetivpos etoeas evitos edT -O00,aTLG .etateo feet -=gwolfot ta Yrteqmod itutoaTunism .000,28L% sel onsiorem brs :000, 0083 ,yreatdoan ot fsspe muve 8 38 Bertotnavat stew ([Lkw Boog ota etnetaq ett | etoces ait to yasqmoo edt o* teoo toa ent aeowsed eonsistith edd — ? _eggnas avitos ot to enotteslay eveds edd bas betivpse yore. nonwes Yo eetade OF tot deso 000, [@ hevieset yasqnos ONT: 555 fetiqes aaivitew tot ebawt gribivoig IO s2o0q TG eit tot San ,to0te dotdw to .000,008¢ of aattmuoms ehrod to event me bos itodtya fees sot 000,001% :ewolfot es biee yilotetbemmt Sei6w 600 ,0088 usote nommoo to entod s ddiw .ts6q #2 deao %0 000 ,OOLF bas ,*08 ts | | —,000,0013 of gattavoms = ees novig ed ot Hoods sonmos gethivery To eroqiug att 04 | ett of yoota mommods To 900, 008¢ hersnoh erotusostunam oft eunod - | emi waggatoo ert Lo yiwesotd ae = —_—- ~yaegnos eit 10% eefisa9 deso odd bar teatvot ed? ersqoTd eo9nasisd e stsqetq Dre ,atoitosennit ovods edt to Ife gniievos | yeneqnoo edt to foode = * $df PROBLEM NO. 105. 93 (N.Y. C.P.A. Examination} THE RICHARDSON ENGRAVING AND PRINTING COMPANY — The Richardson Engraving end Printing Company, a corporation having an authorized capital stock of $50,000.00, owned by William Richardson, $10,000.00; Silas Johnson, $15,000.00; and Thomas Aacten, $25,000.00. | The plant was destroyed by fire September 23, 1908. All the books and records were saved exeept the sales records,which were - not written up for September. The. insurance companies paid $28,000.00 on the plant and $7,000.00 on the stock, which was distributed to the stoctsholders as received in proportion to their holdings. Cash was received from September sales amounting to $13,500.00. On September 30, the trial balance disclosed the following condition: COGl tee eC ioe. Waaes Coven dens anaes a oe ee. fe A #$ 50,000.00 LOG ee ee ea we eB en a ete cis ecg Ree $ 30;000.00 Stock on hand June 1, 1908,.....++.-6-. 8,750.00 PCCUGRUG PCOGAVEUIG, saunaeesnacere ss ees 19,640.00 BOCQUL ee WAP RLS pou Gale bills «ig Peete W oh dele s Lh. WOU. 00 ere UP me Pore Wat CO CULS, poe wid oly wlelite els 1,250.00 TES Bee BO FO IMGTIG gis c 0d os Bike a RGR 28,000.00 COSTS sass 68% Pate hs PORE a9. 4 aig +s > ale. 3,900.00 BRRVAVINS ) cen men «6 Pe eee Ae ee 77,600.00 PINGING ew «a's ee Rie! Ob se MPPTR ah CBT aa ele ae odeet rte ee ye 99,350.00 September sales, not allocated,.....,.. 24,175.00 MERA Ten 3 Oo PUNE S SOR i ce vaiwisioiy nee 58,800.00 © WE RSS re ee re NG pwee rn iete Agr AN 150,180.00 [Yah Para Lear Oe sla We ek a eee Rsdvavartthberasitntas sigs 1,800.00 LAL ey Sra ibal ae takatoh stokedodansaenens pois vowes sue) eye ajese Big Coe OO Je POL Peo 2OSS (SUrBlus yp. 3 ss oo ¥.0.4 00. 8)5 : 855.00 Wie Pte RECAP OSOG, o's eo vie o¥ dks oe 8 eis oie 7,000.00 Siias JOHNSON posse eas cee wees re re ra ye 10,500.00 Thomas ACTON, .secercerevens « dakelerats anne 27,000.00 $8293,820.00 $293,820.00 fhe accounts receivable realizec $18,320.00, and the liqui- dation expenses were %1,850.00. The stockholders turned in their atock for cancellation and received their proportionate amount of caoh. Prepare journal entries closing the books of the core poration and a profit and loss account, : Ref. 29-6. 164 oy ey Oe eee tom “wnasuoD ours mk, Moe Molteroqto a 8 .Yaeqnod gnttnied bas nive 3 MBLLLIW ed borwe . 000,08@ ta Reve ‘Bilqss be genet? bar 200.000 “ace Moearot este 100,00 eit [fA .80CL 23 rodmotqas ety ws beyorteeb | aie + Seo dotriw, ebtoso% eafse ed ote ood A Steq eolneqnios epnetwenk’ et? ' . Tadhedgee Be ps me 00.000, son | eev riottw loose ett no 00:080, TG Sas taslg edd mo 00. tient? od mottroqerc wt beviesey ee) erebloctroote aor ot betudiateth F ot omitrvom esfasg t~odmetqees mort Sovias a . ‘ edt hoeolaeth oonkt i Te lind ,06 bans 3 i Le Selah ganeal tot i OF .000 Oa 2 oa a Se re erie uae il: fattqsd at OO. OOO 08 "OTA TE ADIDAS Aas sth sbeas ds sepemaueuane | ah Colowover cc iipetgeaOMR Ad Sei anit ap isote 7 . Ob9 OL Hen e eee weet ene PLOBV LOOT etaroooaA 00.008, ef he 04 seh shige Siping 4 ea yp dnache re toh beg 4 | 00.088, £ mes eat hdd edi. 00,000,898 Mir iabiheiade ich id ccs 00,008 8 “ee me ie . ial o8. oe. se vee aes tpeenegs land. sso Se sae tina 8 9 diel As 60 amma Sd. | 7 3 pepe a) o> © > 2 oO ey, is “a wg * # > 2. fr ah eye ‘ a3 Ne | "ayia B OO SOS" ee , by ES Mn ke Be wea eam ea a eget OOs GT £, SS Bae ag ea eed » detnvoli a ton. (estar te me tey } 7 ~ 5 00.008 « 4,88 De Se ee eee ane 8O8EMO Tue ert! Te aod ; wee Os Ost 108 TSE a as a aaa o% 2906 Oe : : Vinh ee Se 4 ale Aen 4p wiht o by eee aia |! 00.d@P.8 Mia TISTIMI SONS E OR A ae heh Oe hee obey yee 00.8208 © 5 tote creme seen e eg DUIGINE eeol bra bra tttord 00.000,7 Fes eon Me teeeseesesse qMO@Btsriots mofLin 00.006 , OF REPRE MINUS RT ES AONE DT 09.008 WE Aer he dh ae ttt ane ‘ee its sti ; | semontt , a re ern meena ee ey ees acre Ae ite Che, "abe iy eitpht 9x eit bre 00. ote ate. ioaneaes _otdaetocen ef i SLO) of Senctert etolomloote ent 00.9 28,.£0 si0w eB Age to tavons efanotii0 oqoty thes Hevtesed baa ttalisonas st: eee a “oo sft Io Blood oft grteofs esktine fan otecett .deag hy | ati) alain. bala — H8on a ‘Bie moktatog, i yh, a J oa x a4 Wes P , rir iA sn meu? cyt PROBLEM NO. 106. . 94 (N.Y, C.P.A, Examination) The A Manufacturing Company incorporated under the laws of the State of New York, with a capital of $100,000 consisting of 1,000 sharec of $100 each, all of which has been paid in cash, presents the following balance sheet as of May 51, 1909: ASSETS of (ot eget PRS RS oe ole On ae eae ae 2S 128,000.00 Materials and supplies, .-..sesscrcacvencrcces 25,000.00 ACCOUNTS POCCLVADIE aan s+ oc ee ee os jae gale 0'n 300 , 000.00 Plant and buildings,....cceesees oes oe Wee 8 400,000.00 $ 850,000.00 LIABILITIES i SG OR aR ar ae RGCOUNGA DEVADIS POOP Ses ee ee ee ee es eevees Pe Os OO CaPLtal pie Oa's Has ss PEG eee oe were hs RUM aT ET ‘: 100,000.00 SUPNIUG cass eas A + «sit Sate . 730,000.00 ¢ 850,000.00 Annual sales,$800,000, ar ee The B Manufacturing Company incorporated wder the laws of the State of New York, with a capital of $1,000,000 consisting of 10,000 shares of $100 each, presents the following balance sheet as of May 31, 1909: ASSETS Peaks. ged. Urs Lh ee PEO, Py BP Oe SE DOC Lon PATO tS GEM SU Tee, Gee il ee oe oe a's a Yates 25,000.00 PECOUN CS POOCCLVAOL ee ewe ws ese e see daa ew eeaae ‘ 200,000.00 PUA Nig decd jnicc tn besenabe bile wearin: 9 6 whats" ats tits totaal ale atatale 500,000.00 OEE, Feietintata als i alenedicinbalatctetete:ste'ate’e ate eel ats ei etale 700 ,O00.00 $1,475,000.00 LIABILITIES pvelcla cherie cue 3 Led 6: Uy a Ge a Mahe whos « © WiS0,000.00 GOPLtal, -cevessccccrcerccscanerascsnscenves ie 1,000,000.00 SUP LUS 5 sees wee Be oo shales eee ba de eee wikis 325,000.00 ; $1,475 ,000.00 Annual saies, $600,000. ) * oar guar aaa Both concerns are engagec in the manufacture of the same commocity anc Gesire to consolidate for the purpose of maintain- ing prices, but will continue to operate each plant separately, They organize the United Manufacturing Company with a captial stock of $200,000 consisting of 2,000 shares of $100 each, the members of the A Company agreeing to subscribe for 1,000 shares anc. to pay for them in cash and the members of the B Comoany for 1,000 shares also payable in cash: the stock is issued to the following: 164 Be | ,a0f .om MITEONT a : 90,9000 ,0d8 | ee : ,000 ,0089, sefse feucna Me es i Ay 1 M (nottantmexd .A.d-9 vu) yee Ta) ree: > re sotesxoctoomt yasqmod go bid Oa Tat si 4A to gaitelenoo 000, 00L4 so [atiqss a dtiw xoY we 10 9 ad2eso ai Disc aeod ead doidw to {fa ,ciose oOLe to ders | -G00f ,fc yal to 26 ¢eoce oorelad antwollot eds est by ae lliet evseeak hr hati | ees 04-2" oe Pe *-* eoeneevee eo : od ; ‘al aah =F > n aerey ay 1 to ewel efit, tony 90,000,as£ @ 2 = Does oc cle blele aiplete eine aiiqque bas ete stdavisoet & nOoOA 00.000, cS e*ne 4 00.000 , 006 econ een eee eee ee. e Pee os Vio. 00.000, 003 ee CLL Leseaeend os eaRentee ois trald , se 00.000,088 | be 0,000,088 ecITrdyaall a oo e La ysg etaysoooA — 00.000 ,08 core tee eee es CRE ame A .000,00L ‘* « eb ake owls ee ee 9, 2:5 pa cwnc gs adigsd | . RR Re ER in ier 7 Ne ; a 00.000, 06% ell nena beer peared to ewsl ent tobas boterogueont Yeaquey gatwutosturied & of? gnivelenas 900,000, L% to fsdicss ® dt iw itoY wel to etad? ocd goraled ankwollo? sas afnoeetg 9288 OOLS to eousie 000,0L To s@0@L ,fe yell To 28 yooris — eTaeea | | | U «sue 829 AA) 1 Pel 00,000 ,0¢ 3 nebast sheets © eat ~enevesee eo” ese seiiqque ons efsivetsi — ae 00,000 ,a8 Ccwded a he Pe ORs © OE eT A ; 90,000, 00S ee ay es ee Leet aeeeewenr a. edmayoook 00,000,008 — ecania use ae dbwe were r Oi8 T2000 F Oe aaue 00.000, OOF ee ee ee wiaane cane) os aes 60.000, 308, f¢ ———— | i QuITIITGALs . 50.000 ,0eL g PE Pe 00.000 ,000.f coer dee Oem = Semen mae 60,090,382 90.000,6TS £7 ‘gmae oft to etutos Tuma att ak Sesser esistaiss to seoqtrd adt tot etabifoemos ot eiteo> yietetages tusiq floss etsrero oF euntinoo LLkw f[attqss 8 Asin YABGMOD gebiitoe tans 58d. | @rit fore OOL) to estsie 000,$ To gnitgetanos 900 eesarie O00,f tot editoedve 9 ee yasqmod A tot yeacmod & odd to etedmen ofy Ss fess. et of beveet et “Moote end :leso mE ; ee ee Comprising the A Company: C = Certificate 1 for 250 shares D- “4 2. 2. 3866 Ee 5 tt 3 if 250 Hh TT cw " A | 250 " Comprising the B Company: G = Cex tificate 5 for 250 shares yq- G+ 8 -.BS0 se LI 4 i 7 it 250 Mi me " 8 1? 250 W The cash is veid into the treasury of the United Manufactur- ing Company on the issuance of certificates to the respective sube seriperes, The United Manufacturing Compeny purchases and pays cash for the stock of materials and supolies of both mills. The United Manufacturing Company rents from the A Company its plant and agrees to pay an annual rental of $90,000 and in addition thereto will pay tne officers managing the A plant an annual salary of $90,000 for their services. The rent for the B Comvany plant is agreed on at $60,000 and the officers are to receive an annual salary of $60,000. It is agreed that all additions to the plants anc. all repairs anc maintenance are to be paid for by the United Manufacturing Co. Operations of both plants are continued and at the enc of the fiscel year May 31, 1910 the balances appearing on the books or tre United Manufacturing Company are es follows; Coes a ee PET de dase wesceaewes §E00,000,00 ACCOUNTS PECSTVRO LO Vida wee va race wb ote nsebeas 200,000.00 POEUTEONS Cole User hana ed eevee e cvs re ees 60,000.00 AMCGUNTS DAVAO LS sce ieee neues ec aeowadasss cores 160,000.00 CAgees BLOCK y04 dss Heals sim Mae ne ales Pe nes ewan 200,000.00 The trading transactions of the respective mills are as follows: A COMPANY'S MILL Purchases - Raw materials onc supplies,..... $160,000.00 ye ee ie ee ree eee ere ee 500 ,000 .00 PAGGOCY CROGNEG zg cere sac cdreceevessadeuds ty es 100 , 000.00 nepair anc maintenance of plant, esevcstecers 80,000.00 CISCCE ORONO see owas eebevaces re ra Te 60,000.00 eye SC) BGs | Na ee ee ee er eer ee 90,000.00 eee We LATE OS eGkw +r io eas oer AE ene bas 90,000.00 ER EG ee eer eee 3) rer a _907 , 000.00 164 Si ‘) ee kee uN ie (wie iaeson TueeM hetiall ofe To yenots | edd dank blac et ce eccahell ev isneqeo% erfd of eossorttetes to gorareel “ets no Haro on bre eoento Tuy seeaquod gateutos'tunelt hesticd ot | ae fim ddod Yo eotleque fxs afatcetam to woote elt xo LPP lett vragmod A oft most etrrat yesamed gatuntoetunsit Hotia exit a ay mots inss mi ors 900,008 to [stnes fanutins ms yaq oF BeeTgs bas por | (an pists 6 fLeunns os + Le A edd gatgsass sisoktto art ysq iftw otetede sala yaremod & eds ‘sot tae off eg guid 8 skorts j~o% 000,002 to. fauens ma evisoes of O18 eieakTio ony bee 0090,0 » +8 0 gebays ek at etnafq edt ot enottioba {fe tens hose ef 3t° 20 008%. To. saidihares att yd tot Stet oc OF S18 sorecotiter ‘S08 eats ea If y oa 99 Ba. ies to Hae ort ta oes peuntinos Cg) ‘esnett shod %o esotis ; asfood ett ao gttiseqqs seomefed ord OLSL 4f% yan "A9v taney as ravollot es ete Yrraqmod gativtosignal Satial acti i « 00,000, 0084 PTI eae Sa 09 6000 ~oOS cesenbgebheavetstsbusemeq@seevenaes etosoocaA & re 00,000,008 wens ecegedeedseebwssonsepauaseg Oe enotsisSa a 00» OOO 4 00L ces cedsaesedsesceecseneegOhGG tag Guenuers i eee 00,000 .02>.. 0,008 _ pinseesaensevesenaer@ursntnGs Qigua m pa aud t4 yh 3 ; ms ere afi te svitooqaen ed¢ ghts namasonsen a: gatserd odtt ert enoctot | i . co / 4 ‘ fi A, 7 : ia! 1 | adh etyuaaoosk on 00.000,08f% ..++~,e0kiqare oa° aia tresen ean - Suan es & f 00. S60 00S ecccen cst) shh se ERAS eee ee Ee See Mere es 90. 000, 008 cecece ce (eb mewn seen San ene ~ 1OV 98 00,000, 68 os ose ek +n Se taameen-eti as atae 00,000, 08 , eer ee Se er “ 60.000,00 ‘ err ye 00.090, 0? eoencoeveccessvesp hee sass amen 90.900, T0e vestensoeceasecqasoeaenass B COMPANY'S MILL 96 Purchases - Raw material an@ supplies,...... $140,000.00 Bae Sas one © ae 8 otis ih ee Ae ep Al ee Rn» S 250,000.00 Factory EXPENSE yseseerecerererserarcrccsaces 75,000.00 Repair snd maintenance OF Plant, .-. offs tot setatne arteolo: fis {s) otsqent | aniwore ao Stuptt dna mnoideastines to tnemotste B (d) 41 serteSforiiisose art ot Setudintets etn dof SLind to ey le ae PROBLEM NO. 108. 98 (N.Y. C.P.A. Examination) The Excelsior Gas Company is incorporated on January 1, 1910, with an avthoriced capital of $300,000 (2/3 preferred and 1/3 common, all the shares being of the par value of $100) to acquire and concuct the business of The Bradford Gas Company, whose general balance sheet shows the following on December 31,. 1909; Builcings, machinery and equipment,.....s.s+- $100,000 Notes Payable,..... $ 10,000 Mains, concuits, meters Accounts payable,.. 52,000 Buc Sornnecticvie,iclod tkadd tot sgnerioxe at "@ heristew to ovale sno to mettsomow ort mi .yaaqmos isttel ert whogradsxe oote to eisce dose to% mormon to eterfe eno Sna aso tolefooxd eff Io etotoowt to Susod eft to gatteom « 3A eit tuo yirso of bevfoeet eaw tt ,OLCL ,OS yrenast Sle ,yasemod ~Harl ect? dolrw cdtiw senabtesgs at teptem to asiq s Io enoletvorgq eit of eoksif[ldst£ bee eteores edi totensts of 8aW YoBQMOD ead Srot steolittiss A .1stredo ett febnorive bas yymsomod esd tolLelooxt entiteem eft to seofo oft tra Hoveel eaw teatem to etotoatts to basod edt Ofer ft yusaunsL bLod griteem ent tA eds mo atnavooos t9qo “ot heoviosst yaaqnod. totelooxt off to Sans atoces Ssudivioakr oft Agiw ,yasqmoo ery To exlood feteneg ext yd mwode etugti ord te ,bemysas bas tovo neviat setti{idstl ,200L ,f8 tedmeoed mo vasaqmod esd Srotbead eff to geece Sonsied beeist sd of .ots esetioneii (s) :enoltqeoxe ea edt Atiw .Settrss ef ot tom evlqiuve (d) ,000,0T3 ta hebto00% ortow vent eno ttosenstt gaitstsce yisuaet edt ot 2A eft te hothodms ed srigim yen? Feces stebto mi .miood Ieissce at aeraqmed 280 ~olefeoxa eff to salood edt ak emtt teqotg ot ao srttoelteoy estttne Lemrmot sigelonowie (a8) etsqerd ort to eayste tmorstith eft versqmod es? tofeloox’d eT to eclood btotseatd oNT to exfood ot gateols yttne fenwo, s (df) ,1egtom eYaasqmoy esp - oQe lb 108 SOI FINANCIAL STATEMENTS. a9 PROBLEM NO. 109. (N.Y. G.P.A. Examination) The ledger of Jenkins & Brown showed at the end of the fis- cal year the following balances: Henry ONIN 1g’. wis leteie et eres ete 6 Stee aaa a © oe ERG Paks es 6 oe $18,950 Arthur Brown, TO Peewee gvwee sey Ste rcs CSBP Re CT ED OAH see FF CeCeeaaet ve a Le, 950 Cash on hand and pig bank, *#e@earnrpseeeaerteteovoeereeoertoee o @ $3 a O00 Biile receivable, So @ 8 8+ So 2 Breese se eenwree@eaeaesdrsre 2 6. 642.8 2 2 6 750 BOGRS AGCOUNTS Peto Te eG, . se oss as's so eae ee TAVENTOTY: Rewomeeorinieass ss cede ase cvcnn Gee EFA oP a) Ae 12,000 WMANUTACTUTES BOOS, cseceeee 6,500 26,500 ROCOUIGS eka 5 hay ees Ae oe 6 Sue Os oe we bois bcm eeabele my 00 Uo i Ce Bad cae MUR ee ee ph ede eee eee 8,000 18,000 $48 250 $48 250 Pursuant to agreement each partner had drawn $2,800 as salary which had been charged as an expense to the business. The profits or losses were then diviced equally. The results for the period just ended showed a net loss of $2,500, which the partners were unabie to understand in view of the fact thet they hed done a should have oroduced a profit over and above tneir salaries. The books were carefully checked without the discovery of anything to change the results, and & certified public accountant was engaged to explain the uneccountable loss, An analysis of the merchandise and profit and loss accounts (into one or the other of which the nominal accounts had all been closed) showec the folloving summary: Inventory at commencement of the period: | Raw ETE VELL Ss wee een ate de wie ko 6 Ose 0 Vie es 8 oe Oe 6 OT ee we eee 6 flee $3 9,000 GOOD ies & ae x80 8 oe 0.0 8 4 0s 84S wine «6 yee wie de 0 hee ele le © Be 13,000 MAMUTECTUTEC! LOOKS pg heeseneriatseroesevrectewad seas wenn tc re 000 Pere menee CUPL ae | PEP LOG peas ade & «0 © oe on 8 ese eee eee oe ee 20,000 BROG CUCL S WEL ON awe vales see ted a8 ated eae Ow ee we es 55,000 Waces, Shipping clerks, cartmén, CtCeseewvers-sneases sume 4,000 Wreveling 6xpenses commissions, CUCeseteerovnssndesescs 10,500 Peer ES ss die bir 5 ya Wied 42s 6 bv Roe we OOM ORE A ee Oa Sods 2,000 Bee ee ata ie gg a vin hid kB is 0K A's) 4. hone oe Ree eee we bee «e046 1,500 Fr eee ae Reais enc tev tls cp eee eee eee ee ebe st pee ureeeee »' 2,550 SUT yee LOTS bee ev alee ts ee chee BR RES tr hw ee ee o 600 VES rel OG ig ie ln o ko 8 0 oe ee Bie wien eS elk Vl s oe 8 eo 6 2ou SPOS8 2 ee eisai sen a me 8 ok 8 ed ee sie ee 0d Ae be Oio.8 bee 100 , 900 aa ee er Se hole ass 4 5 bdo ee oe ab oes ed > wo 00008 & An inspection of their costing book showed the following assumption: 3,000. ee ee a ee 164: erste SATS ~ a re i ae | d ts = + Pips : : ib, 2@0L OU MeLAORT ah ae (no Ldarimenh 4st sea ace Me Made etit edt to Bro off ¢2 bowode arent 8 entoicot * ; piecing yah BS: i ‘ ¢ nd @ 3 > ar ‘ty O80 BL i ee t. O38 ,8f wpacee ges onsss+omgheaimama aes s* 7 tan 000 & re eer eres me oev vesacdoeee ewe eee ees aoe 6 See ee 2 IV LSD 000 ,.8f «oo 0s Oe we Ae ee ona ALLE +togo% noauesas exlood me E OO. 8 Go sccaventevs sans LSSEQTOm Ah. janet fe a 000, 28f ay : | atayopon seofl Sn, dhtowg Has oe tbnatorom oft to eleyfans aA - mo oe: ffs bed etnuooes {sateion eft dotny to -tedto, edt to one seal Pet ryan gabe offot edt Seworts | eer nS 2) A ase i : ghokaog odt to) ¢rompoetenti02- 78 000.8 e ed ehieg: pimp ee ee 0 wart rae 000,¢1 ga vv ae be eb els «ile Niels a Mina Wleiaia eins eee 8 3 7 yh 000,55 «aid dla’, dpind altel diate ae oo ee hoog, Seanes irsit t G00, OS } + vines ecmilbie <0 4 he 6 tne: anne eee ie Rim ge Br "tx 900, é6 Lihicises ses tac lahpdcatth Mie ails iMate mee geste! 090.» E so idlinsie.ini iia lit 4i'n) sit tot goede BOL PROBLEM NO. 111. 102 (N.Y. C.P,A, Examination) Messrs. Doe & Roe are partners in business, sharing gains and lossés equally. Required, a statement showing the gains and losses by both the resource and liability method and the loss and gain. method, and also the net capital of each partner, on the basis of the following trial balance of their double entry ledger at the close of the fiscal year: John Doe, EMV OSEICHE 4 beste ewes ec nceiasanavgeen dus bie @ # 8,405.26 RAGIAI ROSE UNVESEMONT pce ees ce never ccsceyswenens oe 8,405.28 COME wICUUET ty kerb 4+ 60 CAA So ons soe ee Gay Oe, Oll eoe MOPCHSNOISG, ob Genes CP ewe ee Sp ewe ecens 3,424.89 BULLS POCCLVEDL Gy eet enact ever es eeseuseou 12,000.00 BLERES OR eae wee eke eee se ceansesess ° 8,550.00 CNS Oy e's 0496S EUS e et eww one wee we . 576 .00 LCS E SEG SG on sa ee es Leer Cwecewes 129.74 TORS BYE POLS tees canes eens eee eenoreere 250.00 Sundry book accounts receivable, .....eee 53,566.00 sundry book accounts payable,.cessesecees 3,803.42 $28,963.96 $28,963.96 Inventory of merchandise on hand,.escccccccceccs ohpaOees 8,000.00 164 ‘sor | tte om asdome " ic (cto itaninsxd ALT.9. rem) ee aalrsdde Beonl aed mt evening om 208 tec yd esesof bra entay acti iwi ioomndal ey sodsem miag bre eeol edt bua bodtom ytiitidalse & edt lo akesd eft no . tents fige9 to Latiqs | | eeofo aft te ssybel yatne sfdyob then to eoaaled £ iprivesion 1a | | saaey, Lane 2 ed% to 7 a8.c08,8 3 eer RE 00d mot 6S .d08,8 Seo eset ones erst seeseesoseer gt MOMseovat (00K Bredo tA ee.FL0.8 8 SCP Sees eee eresreeseeevesssesesene eeBd C8,i85 .g Pete eee eee ee ee) (008000, 8f C8 en etree eee tovenesee SLdavionet efftd 00.0888 Pe ones Peewee crore sewns eens e MOBY RG eLfts i pea : ih a ee Ee ee Tt PV, @8 a THES H OSH Ree ewer nee eereereres ee gt eStoInt 00,028 ST este ewer seseeeesessscees gis bas eeol ; 00. 06,8 eeesevevy Sidavisosy Bitorrossea xood yy tbawe Sh.808 8 se a dotal Satay etnwesss xood bicweacne 8@.800,88$ ac.eag, sce Ld ae Bere tes in * coterie oe BA {Satta aa 60.000,8 # + sisi a gone 10 se tbaartorom to vrotnoval F O08 +08 J das ; PROBLEM NO. 112, (N.Y. C.P.A. Examination) From the following trial balance Dec. 31, 1897, of the Blank pottery company, prepare manufacturing and profit and loss ace counts and belance sheet: BLANK POTTERY COMPANY COMETER Doar a ce FPR Se Oh eg es Seaweed ee PO reve | Real estate and bulldings,wsscsevecccsessnes MAGILWSLY s dic SOD PE CMDs Clee MCs oo eee ree Fae we TOSLTSE GEOT Es fies Vie PROT Eda Fels Poss CUVEE aa Horses, carts, SOO sepaeasduseuevese eevsvseds @#e26¢8 : Inventory Jan. 1, 1897; PT RONOE?TC sb vckaes cee wees +s 40 ses $5,006 Crates and packing materials, ..... 1,200 ClIBV g@easecnonaes erry Peete eee Lee 5 5900 CGOGL BMG SUNACTITSS eseasvecvecscecs Lae PYOELT afd LOSS BCCOUNE fesse wedevesidevoveda DUA OOO GUT CeBSGtkEs ane He res sdececnessceves SUNNY TMS TEC es chee vee ele See ocr eee eens SLOG, POs 2S OPES Pc Pee PERE. FO Cb C4 oe CHWs bs Os PUCMINE se GCOREGSEREEES ES HOSE Re wee eres ricenn SUraw, ‘GCVACSS \OUCs peenrededindevrdrdrrvrrde COB lL au de Ee Ss PET EOD Wels PRLON DS ow « ht a Ha diel at a aah x ClGY 5 2 DREN O6s POS Soke BLET OL G ewer ees COPS PA OMS WEZES 5 SOG cele SSS eww erred dere Own ee res Horse aH cea E Sse ye awed tervever ved erre PreLgnt, OUCesgescceseravessecerscveserece eee Repair a Co. MavNNery , eeerwewe sedi ete eesieades REPAirs CO TOOLS yee westere oa a eeae eee sesso wee e's HREPAITES Che. WWAIGINES weve vewsever weve eres TARSS 6 AOE re Cw Oe a OOM HAM eee av Oe ea eel e's Gas BYP RC EE, CODES OE ere Pe Oa Oia ete’ ie ol Gale eo etes FILLS DEVS rater wte te ote! ar a*e'e 0! Wat eietete eel sete" e* a’ o's att « BILLS PABOAVAD1L SPI I Pact atet a eit eal tate eal a's POLCY GHUMRASR, 2F PI Pine terete erate ote'et a atatatate’ eats . COS, os hil ope Bee were shetetar ee “atatevetetetn ats wistehate? dea ‘ Fetty COR BEC d eae Rk He oS ee nee ee DR Oe wee Dr. 4 10,000 12,500 2,500 1,500 12,500 15,000 119,000 Ors $ 44,000 1,000 5,000 60,000 5,000 4,000 #119 ,000 Inventory, Dec. 31,1897; earthenware $4,000; crates, cte., $1,000; clay $4,000; coal $1,000. Write off for depreciation, on machinery 5%; on real estate and buildings 2-1/2%; on tools 5%. Allow for bad debts 5% off debtors. Ref. m4 e zor \. eSh2 204 MEIEORT — ‘ ‘ : {mottschmext Ase. hay 2D 7d O00, $3 rid serine cuoaceva¥Geguiaaeien. adc... s Legtqad 000, Of e coscscedeseuenene cg SENIDE Bie rate fas O06 Sf ee ee a ee Osi - 008.8 Seseeseesessssesseseeeestrersentecs 300 00¢ , f 5 ein Vii, aD to oto ; ecetoH : ore = saat piorreval ) 000, 3% es ealens coecdaes ott) eae OGS,f sesasg@isinoteam grtriosq baa eoteaxd 000» e SOeReRRBA ser ewacrenes nn bee ebhe EU 00¢, Sf OS if eonsccoswcsceeee BOltbane Bee [a00' 000.1 eseetevseseeseseceegS@vO098 gaol ftte $ft01T 000, aL ce cees ee ees en he bese ceed ohmeeantorene yrbrwse O00, 3 Ree eeroeresrrestoneesees seme tO0r DOTS VUbewe 900 ,O3 WOTETTETITITTT TTT LTT TTT re ee O00.¢ oe ee eeesnee veer etetes eer ee saege dle eQtiftosy 000,¢ sieca ks Cues caadealicaeaae e80T819 eWatse 00d,f ceo ceaeeseeereeeesdeseeseeenbedd ce weweegneen O02 , Sf os da aebae b's sae oes Oke h ene ae ee eae. 006, 8é WEePTrECEPTrCrrTeTrrrrrry Tere etry i) fe O0e , L . Peo re oeweern ne eens og PEMOGKS tao o0¢ .$ Soncelesndeeesr evecesoveseeensuneee atet art obey Soocevevesscenscesegooge ye temanaen OF at. sagen ods bedi he ahibepaneobebiia ce bo me ot erisgen : 00¢ ; PEEErrrrrrerrerer ters) Trt). 3! tac at etieqoh — oas oe SHS ees erorese son eeeeyeeemebessenacee g SOReT oes ee ee 4 ; : asd 000,23 Pererererrnr ry, tren rye re ee ae. ace 000,8 «sn com oe ighaielapeina ih diee oie aaa 000.1 eee Te oe OeS,8 POeCerrerrrerrryr rT err Ty ee cy ct re es 08S. errr Tver Tere eee yITes 000,eLffe 000. OL hs e+9F9, totatD 000,56 esas: oN gr fa 90d 000.£¢ Ls00 600,55 hig 000 ts etateo {[n0% mo 728 yrentdosa mo * dotdatoouce ot tto Ra etdeb bad tot wofLA RB afoot mo So. sneha bre setostdob _ : 809.708 ; a bof TAN: oi eee we re ae, Pee ies | PROBLEM NO, 1135. 104 (N.Y. C.P.A. Examination) John Doe expends $100,000 in the erection of a business block. At the end of the year he finds that the rents of the stores in thé block have amounted to $7,500 and of the offices, 955,180 The expenses of the year have been, janitor and care- teker $1750 ; repairs and altcrations to suit tenants $500: water and gas &A00 + taxes .01975 on a valuation of $87,000; various incidentals $150. Make up a statement showing the result of the year's enterprise and per cent. of profit on investment, after charging 5% interest on the capital invested and $2, 500 for depreciation. PROBLEM NO. 114. ives Uslaa, EXatinateor) The following trial balance is epee you,with the request thet you prepare a revenue account and a balance sheet: tT ee a gat aes ene u 6 e's 6c cin ey) ee $20,000.00 A B's personal ee eh lala seat 1,000.00 et Or Git AWOL LON, whedsectieseesest & 600.00 eee eee Ps ae yc bikie ae 4 4[e 9 0 8 «0 98 90.00 PerCnagc at, SCCUUN sees teervtcasnesessen 8, OUI VO Poa tT aCCuwivs ose bees 5-008. 6 Peo ee ee © eee 8 Shea Dele eee UR Cessadeveheoweeasbesécenese 6,400, 00 CULIe PAVE DLC sake ate RR EW HAO eee ee ee oe * 4,000.00 Se Phils sas © bogie + ole ae ha + se 8 0 8 sesseene \Lyoueee DSN SUOCH, Ween kw ees «a0 ¥ ay ed a ia ema ear ide 1,566.00 GEHEPAL GAOSNSSS 655 cic wa cea dae welsh 0 os « AlegwebQeQ0 PEL GMCs oe 0 5 Wee eee. sew st Se ee eee ceees Sey OOO ACCOUNTS YECOCIVEDIC, bss cccesseessesecner 8,00G200 PEACE. 06 VED 1G un gis puh onc. 4g pomeee oak ope 10,000.00 Profit. and LOBS p00 oie 9.910 4.0.0.0 000» sia a sy» 88 5,446.50 $34,000.00 $34,000.00 If all the information phe ee is not presented in this trial balance, supply whet is wanting and submit the statements called for. our wazs0ns re Wy “a , POL bila 4: (moitsaimexd whet 5 wait) asontayd s te sottoor ott et 000, ,00L% ebas edt to edron oft tadt eoanlt od neoy end to 5 .20altto aid to has 008,%¢ of boteuome oven aoetd | menses S68 tod inst read ovat sissy edt to seasneque xotaw :0086 atnanet tive of emoltsetotin bas - ot gpofary 7000,'6C to moitauiay 8 mo BVOLO, 86x to Siweot ait anivode daemetate # qu ols Fp gt Cary oot mo ¢ito1q to .taeo toq Sas oataerenee | 02,88 bas boteovrt ta ont mo tsexedat 82. get. 80 AEE .OM MaIdOne {soltseeainoxd pede aa Yeu) geostpet oct dtiw,voy bebaad af oonafad Latest patwosfo: ent at ee soore ponsled & bas frwooos esymevet s staqetq soy fast 00.000, 08% eer. veeovreeesre- Renee ees GOeehvne ees eve ee © tndtase etek. 60,000 ai Si nccec cp uneees 6 6 gatneoes AMOBTSS @ *q A. 0 sen © ae 6's 6 eg een en & rely ena AtiI0% to waned . * 00.0 Pee pee RE ee re 02 ; 00.009,8 Perer Terr Tree er ee eatonedorem be Od TS) «alas cue ia os keh lease’ al lie oil xisqed sta: O00 0Of,.6 one tees 6.06.66 e 00 ba ou eee e@iftes BPONY 00.000, eee oe errr afite: : 4 a 00,0cc,.£ oar peed aeectesnnes 60s eee ee amee {seh PCr: 00.3206, f.. «a u80c 0 es warkime om dink ate g MgO weeg © tn O60 79038,f » uis, wie is 6 4:nsale een moe eg Le tansd . TORT 0.G00,f Pe re ee i 6, 1h 00,000.88 srcascesccceresaccagdOQVsenet Sarmaoek flisn 00.000, 0f scocadcvesanesdccduees gosORG RG huttoee are is hs Og .325,.5 Re aN cee. cider) baa tftord De oid: §00.000,88% 00.0 $0 Veet eee | ee bi ae ghar mks 8S | ae an bit nt betnoeosy, tom et nothepor Gat onredhiedl ead ‘ffs QI emotete eit theige Bree. athe bs onl crt eeonatad tetas Pig, « Tie 20% we Late & acrt A, . e i iJ ; i" s SOL by F PROBLEM NO. 115. 105 (N.Y. C.P.A. Examination) The trial balance of the A.B.Enitting mills at the close of business stands as follows: Yarn Peet bie peneccnt ee eee $ 20,000 Pic Rl a Gin & GSE] + a0:0. seme eee oo 4nd As Be $ 65,000 TS ae tse.e HRs 0. e + heat Fee oe 6.46, 18,000 MAOGOUNTSE . PECELVEd, » 5.00 «mw ke e.5* es ems 2,000 DUG LUG wits t 4:8 ee tia AS ED Ged 60s Cane eee 10,000 POWSr 11 ent and HOG eecdweeaeesccrcchobaun 2,000 BONCRL ANG DOSE 5 me eece areas. tein 9.696.408 ae ee 1,000 RODATES, d sin + 6s ae eee ORS Ree we 6 nse Oe ee 560 EXPCNSC,oeeeceeeccrserercrrsrerccrvncens ean 850 SDSUF OCG J nce ae eee e NS ee ee p 4 125 SLOMAGR OL POLITICS S pet ewek swe doscewens een 2.00" Tames Ke kee eae aw kw 0 Ok eer r ee eee ‘ 250 DGERPGCTACL ON s 664. soe wae en dee ye. Cee eee , 550 Advertising, .«.+.s. Chin hae De eka es win 8 eae Ore 1,000 PAVE aie CRCNOUS actus wes suuvawes sy stefan : 900 ROS POC ares eh wae e sha eee cence see . 800 PIOUS SOLON os a tien ced ew « palate pa ale Oe ee 9 es 1,500 MEOUCUNGE GLUON es web kane ee a sist ce eee oe bound 555 igi siatss 5: terete bel) 1 hs GRR Mare a a rn a 550 COS secre ce tue or @ we ee ev eevee epaneenane oe 4 @ # oa 11,200 Bills Be LOE, oa Wa Ss esis Blew ee. 6k rer 30,000 Poerner es) SGUOUNT Ce sawakaceines acest secdans 18,000 Accounts CAVED Gs ve ien eee bee ntesen eens anes 5,000 SIVGNGOY . «kinetin s Hh h ee Eee eek enka dees ven 5, 800 Capital STOCK pee ds +06 wie aes bow ee eee s sewowees o@ 75,000 MAGHINOLY 5.0 04 die ee ee us eee Our See eae ae . 52,740 Bills receivalbe,..... ee i eee . 30,730 $177,000 $177 .000 Prepare manufacturing and prorit and loss accounts , showing value of output and cost of manufacture. Make out a balance sheet. Ref. 9-6 ° 164 000,83 6 900.8 O00 , 0% 000 ,.2 (noid sextmxd ae of to c2oio oft ta afltm saciid se edt + to, 909 908 ,& nonoooe Beef bua $itoxg. bar pebusdos buna e1sqett 5 ¢uo ela Daath esc * geoo bas duqiue ‘to. ouLov | 000,37 ony .Se OEY. 0S 000. TELg 690 TVE ¥ fvore « . eerie soneted i 7 j it | “afl 20m Ma Perrverererr tr ee ee eer Loewe renee eee enema Re Rees es oct een ene ae een ane ewe ews © amis eee ee eee eee eee ee eee eH EVE vi o + oe 06 Shale Sieleelate aduie o ise aenin ime ans 00s cb bn bea bene Cute ener | pian’ ihe Ae a oag a ey. se errr rr fy reer The crt Be elon © P oo 086 Lada aees 0s cone ae aS S.. Sei Seesseceneetecsenteresesensstesenes sOBGODRE ‘ eRe RARER ERE EHTS USSR SKATE ESTE ‘a ose dilce cde ci eneacb es yetee 210-38 aay . cae eee Oh 8 COREE E CO wee seen terete ee 2 Gq) : a en mee, Pr au ay » ode cuik le td SL ae ee eee titovbA Lak escaetoweewesa sin dene sees geOEMmogxo aniloveT bis 60 aah s kev s ee eee een eee borinsdon «a osha sg ila Neagle aaah ay a aria oh ait ae ene nn gh ee etrmooe td neonncdasescosenesonegens games EO teotognt ac eer er deer eee eerste beans CO Hee He Fes ene o- csesegavecrens ener guewen spuhmeS hie toe uBt ioe fa. eceebaceseacesequcsesnesegeemmogoe: 4 sean nua'h och les theer ane rgwanhn PRR SHORE ERE ERE HHO CCH HAE HEH He sevel- pescevesdedees sche aeteeauenegant 2 ehcp ped ; Scere Pp waesa eros ePes ere eee ser ar Fire SUI bane boor wer er il J 4-8 ton DOr | : PROBLEM NO. 116. (N.Y- C.P.A. Examination) The foliowing accounts and balances appear on the books of a trader: capital €25,000, accounts payable 67,500, accounts receivable $5,000, bills receivable abl 250, bills payable PLeeuus furniture ‘500, sundry investments $1,000, expenses $2,500, ease of factory $1 250, depreciation ¢ ‘250, purchases | $50,000, snles 355,000, trade discounts roceived on purchases $2,500. The inventory of stocx on hand Decembor 31, 1900, amounts to $8,750. Prepare from the foregoing accounts and figures the follow- ing: (a) trial balance, (b) trading account, (c) profit and loss account, {d) balance sheet. Ref. ll-l. 164 fe: H vs ; ’ f 7 7 ‘ ee ¥ mr 7 ir to ectood ar to gneqat aoonatad bee @ Ms, etrsooor .O08, va ofdayn ‘ — 40es £0 ofdinyn ‘of ef tte ,O88 4 9! | Seno 008.8% zoenoqgxe “000,£8 i Sates 500, 088 esenlotwd ¢ at me ey ont 5008, $) soead mo bhoviooot & y* OAT.83 of ag onvouie OOOE 4 2 roditooed brad a0 x if oes Ae . } ie eis © awolfot odd motge? Sar) eturonea ante ovo? oct ‘geol bas titotq (9) mhipartc X ulaneeton d) ,sonsisd ta a eM stoode conaled 5) A s MOS 7 q whe ‘ ae A iss : (jae nae Lo ot ee ae 7) 4 J t ia . ii ie - ‘ bee. Aad © an rY li Pu # P 0eS,.¢ See CRKURERIR rth) ot (OTS ye ; Pre irs PETE er ee ey effla 4 OOV >». Lf awe 4.6 (hh 6 Ree Ok Sie bin oh ne ae ee yrbewe ny Ost —_.¢ : cunabseed sl ekebeh + bebe ses'ee eee SOC Reet ywibave : : O06 4i[3. enc wt 00 ssbb nts Sates trail’ 000) kee 03S ,.08 ose cnse 0s Vep Msc sale wey ONE hE cee «} sei aL as has 320.$ eee rk Pee ET et aoxecT _ : o5L.7¥ eve wis 66 OLR On Cella bn ee eee eee ars, £. et ovscdeter cde tune ee bbe e856 4 OO SROGNO Mitr. eens | OL¢ encase op envecessbese see seg BONOM bas tsor atishti mY aaa ay a caer tees wees ee eeneweusse cose DERWGNO etigtord eA = Bi ry es Mm rr ne TA ee a) ‘te aal 20d Ee et Pre etmvooeld : Off coun anans sesteeeeswae (RODRORRO EO ammE ytoave ae cots cleeine rRNA C+ + tied SNe a OV lel eres eee eee eee ee a) ‘a O00,.c6 4 ss cn As Me OR 7 ‘Visvast- ‘rotrovat eeu ce | = é Hein yrondefomm Sua tralgq tte ae\rey issn bat vio Rs ostcn one etrondiaq mo seotedtek _ og iadd seowsxi? Sys enutioust tte ROL ear | -f0@L .f wiauedeG mov deci ag ae ek (0@f ,f& vodmosed baad mo eboog to oulsy tiotasvel off |. 2080,089 +f-8f st08 PROBLEM NO. 118. 108 (N.¥. C.PeA. Examination) From the following trial balance of the Excelsior Ribbon Co., prepare income and profit and loss accounts for the six months ending June 30, 1902, and balance sheet for that date: Capital stock Perferred, 250 shares at Sy. + + «ie-0 0 oe passca's* 25,000.00 Ceamon, “S00 Ghats eG cite ews secs cucae thee ie 30,000.00 ht ee ee aa er Line 24, 500.00 SOVen LOY, UGC. OL, LEOL yee as ven enews nes ° 78,620.15 Accounts PECCLVaAble, ccceeesrcenreeces is OQ-a¢ 1D OC Ke & me 9 cu n ty “a an a 6 | vs “footer AO 4909 soddiat tobeleoxt oft to oonslad tskad ache ecidtton xie oft tol e¢nuoven eeol bas tt oy tots gat sot toode oomated bas .SO@L 4C 00. 006,38. Gono. e +e meMES Ses «cmeaiae eee 3f.088, s OF.8 £5, ge 08.082, 88f 00.88% .é TO. £58 ,e8 es.ove, “OL eb, £92,8 SE LAV SL 08. aa t ey. 3°38 Yie830-8 00.0038,$ 02.028 eV 63,076. 8 ez, .08ca 4 . 5.088. L OF «ORV $ 08.$08 ,0r8g sorneny Tee cec nga ts s9 aan ia gant -getwollot oft tot obtygag etnometate . ftommo> g° R2 Sus aeote bewrretroq mo RS\ Connmiusett blaqos bid oes goxat ;006. £8 02 .28E.503 . S00 LOE ortert eviotmovml Vere’ 10K I Yee ey a. ceveeeeeeewhnw sve LOMe gik: ood «¥ Ovrrs soe - a : vtec neegeeerine +s se gMiCaines vl i a ( et heasrio trey ; see 'g Loan vovecodeceeeg(hwoml?s Sra B wat oF cssesergs 998 BLodal .2oxod + togaq aodstn Pa ire a .='1 ble atte e Udheah > 49 po ace a ie! f ny eee ster a mo MPEP 1 Lh eae gaibalw aigaat : trees neememen eg BMOOL Baitagetq Snes | ters ee enn ee BMIIIOT eeel. attodd ls eofae 2/0 hss ertcuseseccese QuOomsl looatm bon src t tte ce sere ene ee eg BIERNOIUM oO atauooeid © Thy -:f00! £8 .99% ,epiqure = eeol bas bls SA eecegxe La: mak eels. a ae baa Brag LTO ,2oitslag Seeereer Oe erry ateenigay Freee n rete rereer scene senncogh lim to tron : = Steet eee n note ewereges se g SMOLZBEMNOD © a Lie. 4 eee recs euseneccnsvege dtd gattigit fot -+<(8899 «ent anthulont) eocameqxe tonto > Tiaseressearrsescesavessepen Old e{ita@ i See ere vena e wee ew OL fdrveq el{id no testotant . "ht Sa AR as ie ee me cog 89 oR 0. OO ee 2 28S ORAS Oe te eee a eee ai 8 Stee RT Te ee SS ee 62 8 8 "3 ~f to oder odt te beveto :R3L Yrontsoen mo dolsaiosigeh itoote — ( Sotamiteo) ovb tom Sud -bomwtosa todal — :O08Sq urine au enh aa ' : ie bol | PROBLEM NO, 119. (N.Y. C.P.A. Examination) 109 The following is the trial balance of the Arlington Manu- facturing Company at the close of business eqgenber 41,1904, the opera tions: end of the second fiscal year of the company! COSA ey «ved onde sguke > tR0e2 Kanai sack Ba BE, 324 BI ee leah ah Gene ers weee «kwh : 100,000 ALDI 5 e 0's wis wie le +c vikie eke Ae ee baa + Slee 200,000 MACHINE pu w eae SG ole baleen eo ae eee sae 500,000 TOOLS’ Gn implements) «aba bob a eee ees 40,430 Horsés, wagons, &nd HAPNCSS, wssseecesere 30 , 000 Oe POS TUTE ER ie ork eee wie ee wees ab eae S,e0l PL ee PCCCLYAGLE panes been epi Sa he eee ee yon £0,012 POCOUNTS* FEGCRLUAD LG cose rk se chews sce een 165,374 Investments ,s+serereerres eA rae bet se 20,000 Salesmen's accounts, advances on salaries,...s Eo SA ee 1,860 Organization exp. $15, 000 - less foe 14,°700 fee he, wp Ait iit GALES 2 Se Sa a eae Beet sc pd eas 200,000 Dadsve POVEDAG ses ey de etn Ke ee Sis aay Pe Ue Fe a eee a a Special accounts - officers and clerks,. Reserve for bad debts - less accounts pep Sha yay ORIN 6 A A Pr re ras Reserve for depreciation-buildings 2 -1/2%, machinery ora 4 ‘ horses, wagons es a tea a dis eo a ae Capital stock 10,000 shares @$100,..... sales leas returns and allowant@s,...4.+. Rent of part of business De tet ss Daventory Dae, ol, 1905, ec5 6 65 Tere ee 104,621 : Purchases inoluding furniture and 7 OCOVUTARSs ween ewe ees ese wens er ee enews 395; 662 Per en ee COre Se VP OS yee he cles vic Oh Ale 600, 400 Salaries of ‘officiers, clerical force,.. TSokeO SAIOr eee, OF SkT OS molies ccs eevee oe eens oo , 60,440 Ya hida) og vedi Sao Or a eee pratt: 6 aks 6a ee 90,500 TAXOS, ces eae ale a Manes RE se lw Saal ene ho Rael Sena Stes ‘ 4,020 PRPC at dish poe ne 46 # bles ee alee eek eee ae 2,600 PN UerGeeG 2 GLaCOurnt sy es eee eee 4 ae ele ate 6,500 Expenses, stable, office legal and un-= ieee Oy ewe pane a es CRG Gad 8 ea era we 29.,°750 Maintenance = repairs, buildings, machinery, horses and wagons,...+... e« 26,942 PROP euwemeoss 20S Pues , oc ae wolves $2,483,156 42,000 98,511 15,363 lle 5,000 18,000 3,000 1,000,000 1,240,600 500 60,070 $2,483,156 GOL ecirend motgelixA oft off ,S00L fF todmoood ¢ rarottatoge af yaeq 2080.08 361,283,388 LOLE OM 1 uanKORs ; (nottambnsnt AED ta ro conalad tatat edt : ase cgontasd to ovols odd de gaa pee.28. g woo oft Yo w0¥ Ieoek? Sac “ laces tthe eee eee iusjsean "00,002 su gobo alba heck a lob cule omnlg «eo band 000,COS eee eee eT Betua | O00. 00S oe ep neawheue cee ver. f onl ond, 2 Che ehabbeaens «> saa geeeee Lt 000 ,.0& cesvebeseces cOBORIAR OTe 4s ow ,coe' rol f0S.a p00 belaslog ease » « bihend pO TNR emEMe “eo ttz0 S{s. as Pe ee rrr re gy efit ANS caf | Neecedweesesace ens cg GOhORGhQGOT SanvonmE 000, 08 4 cabvemdaarcnrseresesareces»« gQaoiMeeOuns : esonavhs ,atnwoaes a romeoled oes, f Cuedudiiwissceensede vane sheen to OOT ,bL seeeeRe B20L ~ 000,058 .qxe mottasineg10 000 ,OOS cilvesat aot eaewhe seh 0s Gus was 6 Oe Oe Evbood © eoeyzeysenws ina ees pe 4Waiey Seem ef{ta eee ee eee tn betenewel ame id agsq 8 MUOODA a,ettolo ban estoektio » eat oe Lntooge atauooon eeok =. etdob “eh ot dha ee ee ee ee es ome . 7 RLS egnthitiudenotinboonges M = oreo pean ged Yronlaoam , ,Beopaw coated ? Ki PP Die RN Pe es cae ; savavngO0le eotada 000, OL ior fat ke 29 weveeegnocrmiwolia bas soumtet eeel eolse oveoangeOeimotg eeonteud Yo dtaq Yo Inef [85,20£ cepcraserersevapsOOQL .fe,o0d wrodaowns Bers tus Lew? untbuLont. hed der e l S32 380: . een ne ee stew eee eB IOS, 00d — ue vs ieblonvee ¥ yrot dal. oor. at oo e20%GR {astral .erabottto to ‘eedataa: O>>,08 Seaseee bene sree eee eg MQMeOLOe 20. eoitoLlre 906,06 eee * pr OU ts 30 oe PPNE Te ee: Poe ee Chad hess 02,5 vet renee eda eens spans eeeeens OORSENERT C032 BBs scar gtd pt it tem feotetal : mths raol so: o' edeta e es : O2Y 83 vec cv vai Uilagd oWls AA se ueaEnnG a? TkOES! + | nae aaron ah ng r , athe pene ; 326,56 cosceesenere nw eee eyront ok eee SOT einen e0eL azol bes tHowt oaf 780,88 | Dar tt ae . 110 NOTE: T Inventory bee. ab OOS piace wim pies ote vlate ls o's ae 09%» $270,560 Factory pavrolls .acerued but not paid,........ Oe 100 WNGXPITSA: INSUPANGG bu debe es nabs MOO + 6h ee tees 912 From the foregoing trial balance and notations, Prepors a Trading Account and a Profit & Loss Account, writing off 2% of organization expense. After stating thb net profits for the current ycoar, make the same reserves for depreciation as were made at the ond of the first or preceding year. Show as a final balance at ercdit of Profit & Loss the surplus available for dividends. Also prepare a balance shect as at December 31, 1904. \ Ref * L20—2 e r ‘ f it Hy 3 ani} fentt s 6s. woth ~Tsey att ~£00r , [8 tedmoood ga eb TO on iad CWahe@ eae voles ep nee w a : e@ ea ehewerssetes eee nee i eye : Pe, td “ e savevcerg bing Ort 2. a 8 etsgetq ,aaotiaton bas 9or to RS Yio Ratiinw ,tavOd9A zB odd tot atitorwg tom ddd aa otew es nolistsotqeh tot 66 sot ofdaliovs eviqive . ? a GG 4 ¥ + ’ has er es 7 ’ 7 J io 4, 4 r be fg icy ae Vis}, , ’ 7 fi : t : De : ; a * oti! ’ j) Fs > 4 ‘ a jae me ep ae ee PROBLEM NO. 120. (Nive C.P.A. Examination) aad The following is the trial balance of Bailey & Co. as taken from their ledger December 30,1905, SORES b oily Bx. 0 eI he Ctra REY ES ek ROMs BL BGSGRVCCCLVADLS, ngeset heb s Bee kek once ae 14,900 BOGOUNSS PSC VAOLSs peseuadestaensdc tacaane Bey. 10 OS BORE TGOLSG 5 cas oh abs s Mh rr Bee mS Pees $ 2,006 Accounts payable, exwesees TePrTerer ee Tae es Veier LOGS) AT..G. Per CONE eae Pane hha elds ce cerews 5,000 Warehouse receipts, ereacreeses eh wae t eeaue 8,551 Merchandise inventory, «sussnsvereserewones 28,900 SCOTS. DOOPOLLis «ens cme mem Re OA Faas 20,000 Mortgage on store property at 5 per cent, « 10,000 Unimproved real Estate, secessnenoescscsces ° 6,000 OeOre DLRGUMSS seen sc aces ae ae ews 6 koe ee 5,000 Depreciation on store fixtures (1904),.... 500 Horses Ad WARONS,«cenwceesessvetsrereens 2,000 Capital stock, 750 shares at Sere ae acs 75,000 Profit and loss, A ek ow oo owe wks 088 Ae sy Magi tasdy to) 7 a ey Se ee a a is 132, co Sy De Sr Cy ea ara ae 152,439 PLOCOUNGhs ds 6 aw ee eeew ve te eee Saag me 8 oe ee 103 RORSCS GL. GVET SCOTS, ccc ey ee eee cciuas a 250 PEO tise sa 'gina'd-> 4 > 4 9 6 48 8 68 8 bees eeliees rey} 156 PEND tw ie wile es ere ee 08 . Ae MRE + hike Feel 800 Heat and light,... awn 6 Hee eis ema Sits ih me ile 375 Salesmen and wages of employees,......: es 4,912 Pr AO eS Oa Ata as alae VEG oP nib aces med 4,000 Miscellaneous expenses and losseés,.....«e.8 ey eoo re $256,992 $ 266,992 Merchandise inventory Dec. 30, 1905, $30,254. Prepare a trading and profit and loss account for the fiscal year 1905 and a balance sheet as at the close thereof, Reserve 1 per cent. of the cpen accounts receivable to cover bad debts, a further 10 per cent. from office furniture and 20 per cent. from horses and wagons to cover depreciation. Ref. 21-6 ® 164 ‘gd | a fetes es .00 & yollad to eoreLad fz y ' Sif .e % Pee. Sees eer re - Ve ‘ > O0e€, af to OOo erate nr ereces espe’, O67 ,.SS ihe ee ee . 500, ¢ | hee eee ee ee sf,? eee eee eee eee et) cs OD 000.6 SOTHO Reh ew ene ee eg SMO ot “a | t# engsol L22,8 CVE ORTN REO eb ees er eweeeg Bg ~S Sevonto1sW 0O¢ ,.8$ PONE OTe Ry ee we oe + -» $25,000 Organization expenses,..»$ 688 Purchaser's. aecounts,.s. 20,825 Land purchased,...-...-- 16,000 ROUGH p55 25 te eeaesengess 2e,00Q Surveying and gradivic,.. 6,000 Commissions and fees,... 905 Accounts payable,....... 1,000 | BiL1LS PAyadlOsasacecnsae &,000 Fonstruction of GWOLLIMES Piwtcecaceess T,000 Mortgage payable,....... 11,300 TNTCPSR Cy wee e nev ee eamee se RT LY Expense, rent, salaries CUGCKG Rae a Hb eg e vie ves ee 7 OUD $54,144 BG LONCE as bine wet ae a eee - 4,586 $58,730 $58,730 Inventory: land $42,000, dwelling $7,100. Prepare ledger accounts,profit and loss aceounts and balance sheet. Ref. 22-4 164 py Ue me . ee”) ie re it i. Vivian 7 A el ‘ al / s r reed ¢ | eur ‘y ie A Me ey 25 ee seer Low wasaons mes (nolsaninexd star ou es 7 to {asiqcs a ditw sextargt ¥. tm 0088 a seearegxs mottesinas7o 101 boueer 7 x0 y fee > ee ae ry — 3000 ,088 tot Baal to. Sonus ry goeadon iq Yenc | .5f3 ebnogxe base ,tn : ites Ae “wood so t¢aq bre Mteeo ck to t¢00 8s te esavod niliLewb wefinte ha ele yn estie mo trsq base Inveoos Mood no Heat 3 mons e089 ‘east e2! a an©® .008,f% to sulav apt at 8 000,08 tot ed. & sot bfoe “bios ef 2 Sarthe - %” 4 7. ; yonom searo tied ct? Sabb oud ,008, 08% Yo tnvoms atof to : o. teoxotat doisw no sottatedtanos ttaq swgose Sweden pal ag vty t ret oiied soysgdiom Hise ,beviesss ef O8y to. jane - insol 8 10% yteginos ont vd be eta ; .oueuttom 0 106382 ett to nema m6 O02,£54 eyaq vetegmon edt. | -sitsea mi eoton eovig a .5Loe etol sonaitimyont moxt eesolet of ' : to mye’ ent of etnsooos vwood to teem ; ssiv ,2woffot aa e%s enottogsensis deso edi? atcomyad | | etateoon e339 oan ROR noftestasgrC 00,5 intends oOo. Br 28969 OO N TE Dressy brat 288,08. $e, 80 uo = — 090.8 es .antibata base gatyewuse 000,ST 60 ge teookes Cemeneee 000,f bene e vey Qld@yag eiasoooA OQ 044, 899% bas enol: | Darn 090.4 ressvovevegelCayag el{td AL F ; : My to molitomrifenot 060.7 o¥eccedeve ceeenne. tewe OOS. ££ see ees g@ldayad egaese ton © Civ .f ccccceervaseey mes CO UOSIL 4 oooel . veivelsae ,gnet ,eenegxa _ i | a Cf Oe at chen cece see een vasasoue . ' ed a ' SOi Bag .. er d8é , > eae oe *e 6 osevesese POMC RE of ul O27 63% | O28" 88> a sOOL TF gatifews 4000, Ere) bef rytotaeval: ‘a somefad brs essocsa eeol baa chee heet veabet ehaphk ary joy is ee <8 vl | } : | “0 ee yall [a ee 4 ? oe 1A + ew me) PROBLEM NO. 122, (N.Y. C.P.A. Examination) 113 The general ledger of Ward and West at the close of the fiscal year ending Slst December, 1906, displays the following accounts and balances; Residuary Cash Bills receivable Bills payable Accounts receivable Accounts payable Real estate Machinery and tools Furniture and Fixtures Inventory of materials and wares at Sist December, 1905 Purchases of materials and supplies Sales Investment securities’ Taxes Insurance Salaries of partners Salaries of clerks Wages of workmen Traveling expenses Discount Light and heat Freight and expressagé~on goads sold Office and sundry. unclassified expenses Baa debts written off Ward, personal drawings in excess of salary West, personal drawings in excess of salary Ward, capital investment West, ‘ Goodwill of business acquired by purchase Income from investments values at 3lst December, 1906 Inventory of materials and wares Unexpired insurance Wages accrued for part of week 164 Dr. 13,050 6,300 14,040 28, 800 7,200 2,160 39,600 61,200 10,440 2,466 414 8,000 3,550 20,706 1,530 486 612 1,638 1,332 1,404 e,ec0 se he) 15,480 243,738 ieee Cr. 5,000 6,948 96,500 £25 cif Sl Ou MaIgORT (xottsnimex® .A.t.0 oY) shel fe19n99 oT ° e fele gntbhbae iw9y, geeoneted Sas” fsoekt ort to eeofo edt ta teeW bas Biel to wt gircuooosn grtwolfot sAt evsiqetds ,90ef ,tadmecs oD oT Miu aa 005.8 ofdavieset effti 4 000,28 | , efdeyseq ef{ita@ | O50 dL eldavisoet etmoooA 9b¢,5 | efdaysy etmroood © 008.85 ; states Ise 908.7 efoot bas yientdosm . Oaf,3 a aeyutxtl Sas otto a eotew brs alstvetem lo yrosnevnT -— 596,26 BOCL ,1wdmeoss” tell te 008,10 eetiqquve bas esiatietam Yo eoesdo iva . aa COE , OF . ealad ODS, OL gettiaveoe tasutaeval 56), Bis eexsT Sfh eons wenl 600,5 ‘etontieg to eoltelseé ‘ O38, asixelo to eetesist aoy , Os nonmltow to esas O8S —f eseaoqxe gatleverT 48h : tnvooe ld fa tse bas geaighi 305,f£ Bloe eboog mo-sgeesetqxe Sna trated ; bettteeatons yubrmue bas soltto SéE,£ eoenegqxs pOs,f . i fo met¢inw e¢deb 58a to esooxe at saniwanh Lanoareq ,S18W. oss,8 : wisise | to eveoxe at euniwarh Lanoeteg ,seoW OLL of | _ytetse 009 .0e dnemt sev (s¢igss .Disw 000, éS | . _,tee yd bettupos eeentaus to Lfiwbood O65,¢f eesioturd och. | , etnemtgeval mort emosal Bo%. 529 Bet od8 : S0CL ,sedmeoed gel ta seulsv yiavbieeA avy .3a aexew bre sisiietasn to ytotaevnl 7 ost .- gonstvent betiqxenl 7, awere &Ss Heew to tiaq tot bestoos Begs «bol ; | Reserves to be provided 114 Depreciation on real éstate------~-----------~-~------.- 1% “ " machinery and tools-~----- Sit io the Bategs with 64 . " furniture and Pixturesen—henn-nn-- on nnn 10% Bad debts, including accounts written off, 2% of sales Prepare a business and a financial statement in technical forn, resting the trading account with prime cost only, treating the income from investments as supplementary to net profits on trad- ing and treating the partners’ salaries and reserves as appli- cations of profits. Profits to be divided among partners in proportion to the capital investments of each, Ref. 23—~5. 164 9) | my. bef a ; 7 i ge mottergouqed wa dthtdnmdgindwsge noeeeG L608 bas vreqtdssm Ca ee “ “ OL ae aetaepdodaomnmoeQOTUI Els Bera erutiatwet 8 ” es i. ng exantuaq goroms bebivih ed oF etltotd «etl tor” close to etmemteevai Latiqso any | ~kiqas as esvieee Snes es6inetse ‘ etend eq days ‘oso } Yo anolsao — 3 mot 104: oe a , ; 9S~ES toh : _ er | hall a PROBLEM NO. 123. 1165 (N.Y. CeP.A. Examination) A land company is incorporated with a capital of $50,000. It purchases a tract of 104 acres of land at $500 an acre, paying therefor $32,000 in cash and giving capital stock for the re- mainder of the consideration, and at the same time giving a mort- gage to a title guarantee company to secure a loan of $35,000, which is to be satisfied by partial payments as lots are sold and released. Obligations are incurred on book account as follows: for organization expense $619: for grading and paving $23,400; for water mains ( a separate enterprise to be reimbursed by service charges when ready for operation) $4,000 Direct expenditures of cash are made for organization ex- ense $537; for grading and paving $11,060; for water mains 1,020; for maps $'700; for advertising $1,200; for salaries and expenses $8,679. Settlements are made with creditors by cash $8,784 and by capital stock issue $10,000; the remaining capitol stock is issued for cash. Lots sold on purchase money mortgages $24,857; installments collected $9,442; cancellation of title company mortgage on lots sold $8,050, and purchase money mortgages pledged for loan of $10,000. Interest paid to title company $1,849; interest received on purchase money mortgages $924. Inventory of lots unsold, in- cluding improvements at cost $66,575, to which latter 10% is to be added for appreciation of value. Maps on hand $500. Prepare (a) cash summary, (ob) skeleton ledger accounts, (c) profit and loss account, {d) balance sheet, covering the transactions above stated. Ret, 251. 164 art -2SL OM URISORT is | (nottaninaxd wAe§ed « - -9000,.08% to Laétqao eee ioogd el yasqmoe br a ry anfysq ,otes ms 0083 ts Snal to sexe if to tosit s eos ; “ot odd ~0t Moote {etiqas gaivig bea oT0BERnOS 8EQ eueds -ttomt s gaivig emit omee edt ts Dare TO, > ets Laer 1000, 38? to maol o eis068e of yn i) S 90tn bios ots etol es otnesnyeq teldeame of beltett ae i) Ot sewollo? en ¢rrooos aeod mo bortuont. tot ;00,289 saiveq bos anthers rot :0L38 . 95ivice vc bocwdmter ed ot gebrqretne staiaqos art GO0,.8$ (nottatoqo sot yb +xs mottestasgto rol sbem tig 3 fleso to sets haeqxe to ' ff entem totaw tot :0e0 itvsq ine ar oore 107 vee “gadets reoE seg hos eotthtsea 10% 008 grevis “ot ; foe, 88,08. Hens ts stot Lbot9 43 Ew ehan ots etroneltsor vee fottqre antaksno< artt 7000, OL% oweci sfoote Latiqss yd efeno 07 howe! ie xsote- etromi{ls ‘teat :¥86,282 eogagdrom vecom eacdotug esol no Syucgtiom yasqmos elLthF to pia Pot jordin. See Saag Abe. bd Ha ¥, ag ts 3 vaste 4 »* oe? . _ to mao! tot hbenbelq a vero eeatonig dns fro howhooett teototal 7;028.£9 yasqmos jon c8 toe relaay a ' ok ,bloeay etolL to Ytotaevayt eeanadiom yortom ¢ ot “ae or tottel dotinw of nava,B0a 3 ween ta Perit oh Siaqext .0089 baa ao eqeM .erfev to notsvatoeyqg bas $ftorg fo) setnvooos tegbel motefoxe ret tiles» ovede enolissunat? eft gntisvee on aonsled PROBLEM NO.124. 116 (N.Y. C.P.A, Examination) At the close of the year 1907 the books of a manufacturing company show a credit balance in the profit and loss account OL, +> ee Se eo $eeo, 000 and a merchandise account,based on appraisements of inventory at seliing prices,of,...... < 46 ee ee § ieen 36,000 _ but an appriasement of the same inventory at cost Picea would Amount toy. .secneseccccvsecetesesyeerses 27,000 The trading income, and profit and loss accounts for the year 1908 show the following balances: SAVES pds ELodieans Re ire eee ee ee ee Tec re C 100, 000 DROSOCING VOR 105 VES baa 6804444 Ree ch eee tees eee eet wee 1,500 ROTUrNS oN SE DLOWENCES jane nce ee en tase oreteeceerneeenes 500 PURE a ie ae a 4c hal AEs Cede ka ee Eee OE 75,000 Frei gnt OF PUrChases, oveeoseancsecsersenrscernaeveses ee 5,000 DiSGOUNe. OF PUPCHSAES , oo. ne beYet:} amergofot were eee eee eg OOM 9x9 a8 notsoef{i[od | covscecressgatttialtq baa wrenotsase — ee ee 714 oe he ee tee eee Sk xo Bes 9B | reve eases e & cuwuogl (99 fk?’ Serr .) eer aig ee ¢ i aes ” “V ‘ a yeah a 4 7 : OTT a ( oe og iP 7 oF 4 ahs FM a: rid ved hh tae iY -* é - BLLLS: PAVSD1G, «0. ss eeoeev@e7n#ee#ten@ee#eeees# ABOOUATE OR VROLS« « oo» otsvleuts dp iano Surplus,...«. Capital stock,.. Director's fees,.... Cartege, out,.. Discoants, trade,.. Retin sal6s Account, «sas. Ref. L29=2. eee ee eee eeceeoeteevwresee eevee @eoees8 ot*e@eoeeeeeoeeneesoweee eo eeepenrt he oP e880 eaeeveee eoeeoeef eoeta@eveseeer eto @ 120 ; # 99,050.00 43,000.00 43,520.00 és 200,000.00 i$ 1,500.00 4,300.00 6,300.00 41,000.00 is “$1,440,370.00 $1,440,370.00 | 004052 oats 00,08. Ob, f arial / a eae ee Pe 4 » i ¢ Ye ee eh aK i t : i ‘Q a ae biehy Wang 2. Ss Ait ie J LU 7 1) Rao ey es ni. on ay ly ong M 9 wa eva ny ug oy piv ay a | it om, aa cub ‘ g 4‘ ae a ‘ ree a ay be i i ; "7 ¥ . ‘ ae ae o) ey phe Ue o& sa uy Gy CF dace a0 bie yy, a ; oe sal Hot ea | na shone tm 9 nly! a Lan ee ~~ mir ni: hi hr S| i af \e ve , Hass erie See ee 4 Dalasi ec MecoARiu Ve + @ ee es % oe ¢ : rae | j 4 I ab aks ile ww a @ t | | 7 lay! i A Ag. ea (eee * , = anf BEN 7 ale le wary iin i } ne ay in 7 un 3! ! er eo) Oe a J f , +e @ Ay? A Fy Pils ils Be 1 ee ye ee . & &, i ry et a are ee Pe PAE, eC mee et 17 # isn 1 Rene ey ; yi ’ Eade oe x a , PROBLEM NO. 128. lol (N.Y. C.P.A. Examination) From the following trial balance of Johnson & Thompson, In- corporated, as of June 30, 1910, the end of their fiscal year, prepare a manufacturing and profit and loss account and financial statement: rt OMe CRSA. dare fd erates a Gal® eu ue Che ' 75.00 Get Cl COE, marred: hes od a mee Ge oan ce : 3,750.00 Inventory July 1, 1909 HOW MAPCOYL Al -sceawer tea beeede eee eee 33,480.00 PANRENGG BOOOS peas cca ska ws Seles 008 eos ee 9,760.00 SOLGAV Seas eas Bre re he OPES 5 eon se aie $540,000.00 Return WOLCA CRU Me HN Peeks ks sss 8,465.00 Freight and express Outward, ccsssscecsee 935.00 PUY ORABCS ais ye ook 5s ek weed Mawes & « ieede 195,670.00 BGOCOUNTS DAVEO1LOy uss ees ee eee SO ees b eee se 37,600.00 Bile SAVE. 6 as acces Foes eee been ee ‘ 8,500.00 AGGCUNTS YSCOLVabl Se, sic eece ee saesecaas va 45,920.00 Bieae TOGOL TARAS iia de ee ai ve euan css press 1,925.00 WASGH bce vases cect e sess eer ee cea vous we £0e,927.00 PUGL seek ssavess Paley Mee Sig sie hs 6a our eee ® 11,2¢70,00 PROG Y BUDA BS, oi cess anak eees eee dae . 5,648.00 CAR Os SCOuny. OFF PuUYENGSOs sos n essences ye 4,763.00 Freight anc express inward, .ereevesserss 7,433.00 TATE eee hea pede ¥en Pr rae ee ee ee 277,000.00 BOLIC INGER pee yas ers eb ease ea r's erreee s 18,000.00 MOCEUANONy BNC COGLG ees d ace eeadseensvcues 80,000.00 Maintenance and replacement of machinery EGA TOG1G sedis ee eeesacvcey $10,580.00 Less amount received from old machinery and tools,...... 6,750.00 3,830.00 Mortgages pavable, 6% interest paid to MING Ve LOLO fee vice tie 6a0 6 Ou Ra wes © oe 17,000.00 Reserve for bad and doubtful accounts, +. By 200.00 Suspense account Worthless accounts receivable,.....s..« 679.00 Patent rights - disbursements, enceoseees 520.00 Depreciation - buildings, machinery and tools,e.s.e-. 4,900.00 AOVOPTISING as aceee veer ecbaerreeeeerusene 670.00 WPAVGLING GXPCNSES, ccsvercverevescasene ‘ 3,700.00 Office CXPCNSES ee resersreerecrereeccers 5,500.00 TTC Aa) airs hake Bo) ba a oe eee 2 ‘ 12,300.00 IR WII, oak we 484 6 oe oe A ee ry 12,500.00 TYCOL SST piace te ee aw ee eee peas. «)6 oe eee 700.00 DESO cr MA LER he ee wea wee bee ee ee ; ad a CO tt ee Os hye cacs se «ik Rees os 4 ole enone $100,000.00 BU PIUS ra weber se tus ese eg nee ee ehs st oetneea 8,9'72.00 $723,015.00 $723,015.00 he lp = ‘ h ws Ist (SSL .OM MEIGONE (sottanimax® .AeIsd Yom) «tI ,noeqmon? 8 soendot To gonafad Laint 3 ~usey Laoett itedt to ere ent ,OFeL .0& § fatonenit bre Inssooos cseol bas thtowg bre gnrin 90.aT e 00,0a~.e - 00,082, 36 00.007 ,.¢ 00.000, 0583 00,.60),8 00,da&@ 00,098 ,6eL 60,003, TG 00.002 .3 00,080,3a3 06,.8aS¢,L 00."S8e@,8é8 00,078, ff 00.880 ,6 00,2a7,> . i 00,é¢3,7 60.000, 78 00,000, 3f 00.000 ,08 00 .088,2 . 90.000, TL 00,088, 5 00,e%3 00.088 90.008,2 00,09 00.008, 2 00,008,2 90,008, Sf 00,006, 81 00.00T 00.087, 00.000, 0028 - 00. ST@ 8 Aon 00310 ,e8v% 00+2L0,590% ny ba : ra ie i deh iq 2 1) St vate, ial twee tt) eeeerdsseneeeee ner ees ee SSee ye Peres ee ot fesd 3 eoek .f ¥ yrodtneval ie wecesccsbueéesceeghenaenaae Wem rede aeacedoptens0s0s5at———Ta=es. we ewegeenessceseces€¢6(00000 Osu Ks OPCam De sao 6 deelh a ae a mimsteH ewcvcvcesssgbtawiue esetqxe brs fort | Ath ak ence bee beens seen es a aeeeee omg Ji bwudavecconceecesesseqeLaoved etnyoooA «igs ges ewecces sons eee geeureae eff{td «gD OU oWikee hese pe ggMeGMeaeees etmuoooA sb cwh dbs 6b ss 000 6ee00eg@SCRU OOO Benen ad daas leadsesleeee pasts ts sae eee een oe sue dhac so tWeesees) eb eav ceeevennee bed sulesdcedaesevatebegmernaare yrotosT coud aeeenss og QOGRNPIRG NG tavooeth desd ceaecvevevvesgdtewnl esetaxs One sig teva re ye ee hh te addled ss eles +, 5a ee ee eg cauha ancien tontdoamn to snemooalqet ns eonent 08% ,OL8 poeveesecceeseesgeLoos bre blo mott Bbevisoet trvons eeal seneecseresecees sacs gBlOOd baa vientdoaM GO. 3 (eses bg Rseos Bria yroninosm fo GI “teatotat Re pee os oe BG rer? Te eee ee ee | ger : TSM »+ 2tavosos Lutéduob bas bad tot evteeed dovooss sameqeua weeveess CLdBvisoet etmvooos 889105 seeeveweas g eoromoe tude lb - a it gnod sd ,eacrkbitud « mo satoonrqed coveegtloos bas yrentiio sit sc odacess Hace ebaeeed eeaboenqumeect tone ee bdeeevakuee cewhesumeeeeane eS ew ececaeeseseserenese seg Soemogxe sort? cuucidga Vhs eens eeaaae to eotualae scp Waeuwen sep eden cea SeUMMNne 4+ @iQGOe te : ECO i y anda lakebkie auans sae? mo grvooely A {0 : vs rie fee ee ee Be sote {a f : cv ees enh onde sernceyemene ses os 0868 vis AD he ro i) : - i fe ie Al Ly Inventory June 30, 1910: FOO MACEPL als aco eee eat EAN TEA ® YPiver tees 87,698.00 PAPtLy TANiGhed COs yeas ctaatcescesintad 11,590.00 Py ae Oe mee a ma eh ae Ur oe ae hs ie Se a a 1, ROOT 00 The reserve for bad and doubtful accounts must equal 2% of the accounts receivable. Although machinery and tools are maintained and replaced, 5% depreciation must be allowed on them as well as 5% depreciation on buildings, Ref. 3004. 164 - p0.808.8 eee * ds ne oo ae 00. Oed ff denee ve beoalqert bers , Sonkesn teen noitetoetced Re Ba flow | ee eh A “hi ‘6 ‘oghh rey att oe : ; 2th | b be | ak ; 7 » a " i Bape ,; oo er e tes: if Satay | : oh 4s ba heh “ea a) relia J oat i ee has ke 42 Se 6 i 5 a ad ‘te Mt) Nina th we 1 “it ‘i | pr heim ae ‘np iy me 3 ‘ ied corns | ; Sater? ie ia a . ,* pee 7 G4 PROBLEM NO. 129. 13 (N.Y. C.P.A, Examination) An examination of the books, records and accounts of the Pinta and Mercedes Mining Co., for the month of June, 1911, discloses: Materials and supplies consumed $9,500; wages: miners $1,530, surfaces and warehousemen $475; stablemen and drivers $175; general labor $45; administration expenses $4,250; taxes $150.40; balance of wages unpaid $135; royalties paid on leased lands not operated $125; feed consumed and sundry satable expenses $3350; spent out of funded reserve for injuries $500. Mining operations: ore mined 1020 tons; brought to the surface and warehoused 960 tons; sent to the assay office 1,115 tons; charged by assay office for analysis and assay $10 per ton; cost of transvortation to assay office 80 cents per ton; shipped from assay office to Mexican Smelters Co. 1,295 tons; sale price $40 per ton; cost of shipment 45 cents per ton;; charged by smelters for difference in assay S200. Ore inventories May 31, 1911: in assay office, 180 tons; $396: in mine galleries, 250 tons, $375; in warehouses, 500 tons, $1,000. Reserves: for leveling of land $50; for depreciation of machinery $300; for exhaustion of mines 10 cents per ton. Repairs to machinery amount to $50 and ere included in administration expenses. Discarded during the period seven narrow gauge wegons, cost altogether $350, aggregate residual value $20. Prepare a statement of income and profit and los fe) month of June, 1911, snowing the ton status and the locat of the ore inventories on June 30, and the labor and tran tation cost per ton of ore sufaced and warenoused, sent t assay office and shipped. Ref. 35=€2. 164 ost eet ~OU itatgoRt phe | (nobsantnexd wheed’ ¥ a OM ther on ei? to 5 ues oe brea chrooet .ostood ‘ert 4 z eflOL ,enut To siiaom ong tot 009 site events :ce ye" 008, weed soniqae 8 ttuviu® Ave asnelcdate ;eVee momessodeaaw bas conat :O88,5¢ commouxe aekdentetatmbs ang wosat fs beeasel io btaq estiLevot (G&L bieaqay eogew | eonrroqxe ofdste veieve Bae Bemesenos host :aSie bets ao OP Oese -OO8% esolwtnt ao} evreset sebaut ‘to res gg oA ott of dciguotd § penod O80L bert e170 senottetsco antaim Sil, [ eottto yaace edt of thee :ano¢ OAC beavorlotaw Sans eoatuwve ;nod tee OL yseee bra etevyfane tot ostito yeses yd pthc tenot beqntde z;eot sq ataso O8 soltto yaees oF noltastocensts To seco soitq ofse 72 artot 8eS .f .09 evedion2 meolxeM of eoltto yaees mot? vd Seatsdtp tymed¢ teq effneo @3 soomqtce to teoo not teq O8¢ ,f& yell estro¢meval e1d .« yseea at sonretettib “ot ered Lane | OéS ,aciteifss sim al s60Gy jenodt OBL «eoltto Yaeaes ak Fier q 2000,.£ enot O03 ,eoevotorvsw at ;aVEO .eaot to mottatootqeb tot 7083 Saet to antlevel <0? reewweren nt taco% rot toa atase Of sant to motteuadxe tot ; } cottattetatabs z ci bebufont sas bas. 082 og trsroiia eténtdoan ot | | + BSBNAGEO : zt 200 ,emogaw egues wortedmeves- botieg ont sjeubbieits dobtapate offs 9083. onlay Laubtaot otegerage 083 q end tol ceol bas ¢ttorg das emoomt to snemetate es 6 eet sotjacof ad? ban ampete not edt acrtwore ,ff@L ,enet to dtrom ; @TOCENsts ‘vin rodel entt Bete .0% svt mo eolttotrevnt sto nae to bo 2 ot tree ,beevoristeay baa Beostrs eto to moe 18q bot PROBLEM NO. 130. 1234 (N.Y. C.P.A. Examination) A land development company, capitalized at $425,000 on January 1, 1911, owns a large parcel of land in Westchester county. $400, 000 of the capital stock has been issued for the land which has been divided into one thousand (1,000) lots of equal dimensions. The organization consists of an administrative office located in New York City and an agency office located in White Plains. At the head of the White Plains office there is a manager who receives a compensation of 5 per cent of the gross sales. The terms of his contract compel him to keep a set of books in which the entries are made from menoranda submitted by the New York office, and debar him from selling any lot at a price less than the book value at which it stands. Ail expenses are to be borne by the New York office. In connection with accounting, the company's policy is to Capitalize yearly, at December 31, by prorating over the lots unsold: (a) the interest, at 4 per cent, on the book value of the lots unsold at January 1 of the prior year, (b) the operate “ing losses, if any, of the period just closed. It is understood, however, that if the operating results of any period are adequate for the purpose, they will be applied to offset the capitalization of losses of former years. The casn book kept at the New York office shows for the two years ended December 31, 1912: kt, ts Pe eis aera x ah ae 31/12 Lesvos. (des a3 8 Capital stocil2/B0 6 ace Office expense, _ Sales(60 lots) 15° 206 » New York,....-% 1,455.06 $ 1,656.00 Sales(160 lots) $54,425 Office expense, Interest on pur- White Plains,. 2,647.82 2,530.50 ‘chase money Salaries of mortgage,.... 3900 £,000 selling agents 8,500.00 9,000.00 Deposits to se- Compensation- oure sales,.. 2i5 White Plains MAMIE MSY, 6 eee es 870.00 Adyvce.to man, White Plains 4 OPTI OCs <4 ya 1,500.00 ¥ $22 ,300G56 , 640 $13,452.62 $14,680.50 The general ledger, which has not been closed for the two years of the company's life, shows at December 31,1912: purchase money mortgage, $58,000; investment in land, $400,000. The sale price of the lots nas been obtained from memoranda established by the president of the company and now in possession of the officers of the company, as well as of the iwhite Plains manager, # Sold for $29,000. Ref. 34-2. 164 | at Basil iy .08f .OM MUIGOME = { nortackmaxt Act * 3 +¥.M) : to COO, aSh$ te Sosifatiqas .ymsqmoo tmemgofeveb Susf A - wotgerfotag at Saef to L9otag enrel a enmwo ,ffef ,f Travel ate tot beveet anood zal woote Istiqss ont to 000,008 e TIMWOS %o ntof (000,f) Sasesvodt emo otal hebivih need asd -dotdw Sasl ovisedtaluimba ms to eftaltenoo aotstasiasgto ont .amotememih faupe ni betsool solttc yoress me bas yrto watoY wo mt betsool eo ftito et eredd¢ eotito antalt edidW edd to baer end tA santelI od triv geotn oft to fes0 t9q © to notdserequos # eeviooot ow t6p_emen & : Ao Goe @ qeex o¢ att Leqmoo toatinoo ef to enret ef? .cofse q a a Hodiindise souetorem worl sism ats pelttae od¢ dotdw at evood a ta gol vrs gatifee mott mid waded ons ~eotito MxoY wet edd vd. eeenagxe [fA .ebaste of Hote: ge omlev wood ot nadt eeel sotig a ,eoftto ~a0Y wet edt yd eatod ed of ofm o¢ et yotfoq e'ynaqmoo ent ,gmitavooos dttw nottosanos al a eteft oft ‘rove antdstomg yd ,f6 toomosed ta ,yfusey osiistiqsd : 80 oufev Mood ont mo .oneo ted 3 ts ,teervetnt eds (2) +bLloerus j etaneqco oft (d) .taey toltg ong to £ ytaneeat ts Siloerne, etol any « pooterabw sk tI .beeolo temt botxeq oft to ,yas Tt ,eseeol anit q edsupehs ois Botusq yrs To etivest aniterego old Tf tedt ,Teveword stoptasifesiqas oft teatio of betiqgs of {fiw yors , seca end sot p -ateey texto'l to eseazol to ows oft sot ewore sottto wxoY wot ent ta dqeY atood oeso oT — x :Sf@L ,LE socmeosd bobme etecy . sii a brits yas \ . etgiooon - E\GE\St£ ILL\féN\Se er\re\Sr £F\fe\8 i <0 aan 00, 000,.dé. « ubaedle veenw deumen 62S R0 SCL370 00,000,.S1L cg uclecb ec d0 6004/0 seg M@allogne anilevet? 00,000,é ocea pees e ess Wee? SESS eortesdal 00.28 | views unc seeqeeeeen Das yrenoltas2 ‘gel er AP CUED yas + + cana ae bee lie Pana, OOO .00 Discount and allowances, ecccercesee 11,250.00 PUG lata «i a" ahve 6 tug abe Al gta te Nake traps 25,000.00 eT ee tiem .e.4 sa Spee anette. Wena ni atease 875.00 POOLAIs SNWATKs 22 cee ss ee Sea By 700,00 Per LEB LON, sass «2 + ste mpee ois pais ye 31,875.00 BOMOVEISINE , so ees eis 0 ey ere 2,000.00 NCES POCO VADLO: os mudd nee Bie te woe 8 30,575.00 Motes PLYADLE, sss se seeeeererese a », $ 5,500.00 me hee CCCI OL aon ales 0.8 ond 0.8 * 6 180,876.00 BOOOUILS DEVEL LOW, we ee.6.5.4 6015 whine e 4.9 99,250.00 Recah aiaine.s ¢ piste te eh tase vee Nea 86 “ 3'7,875,00 $ 1 101,775.00 $ 1,101,775,00 Depreciation on plant and machinery, 5%; unexpired insurance, an bed debts, $1,625; inventory of material on hand, June 30, ty $98,025. Make such entries as would convert the partnership books ‘into those of the corporation, and prepare a statement of income and Soea anc lose Lor the yeer July 1, 1915, to June,,30,,1914, and a balance sheet of June 30, 1914. Ref. 58~1. bitin ete Oe 3 a 00,.000,65 r I ely 00,878 ES 3 5 | 90, 03.8 i mien 408 Re 60.av8.f ares as eae 00.002. ee eee 00, 873,09 Ze cee eR ROE 60.006.¢ % % j ocak oneeet ttt GGtmeam ) ; 90,872 , O8L PET he han 00,028, 2% } : We: LA va'é omen » aoe ae DORSET eae Sh wee ve VRE ade ad be ti 90.887, 10L,£.2 O 00.3Tv £0L Lt a 7 Fe ee te ae ; eee 1 iy: se / esnetvent potiqnenv Re erento ast errs. =i no gotisroetced_ , 08 erat i ® ; ia. . : ° . * — a _ be au ¥ -_ y + . e ri) f + 2 a Ph 7, . 4 om : tt . head ; — a ’ : TRE ee Bin oc Caen Wey wih Lh 71 ie PROBLEM NO. 132. 128 (N.Y. C.P.A. Examination) The following is a trial balance of the Coal Mining and Development Company as of December 31,1908: TRIAL BALANCE - DEC. 31, 1906 GOS eG eee e CE es Sew aka i ee Gh age eae Breaker anc’ machinery. gov «<0 r dees co ees 145,000.00 Ure soe Cul LOL NG, aves Ce eee eee hs be hoe ate 5,000.00 Plackemith shop ecssaeveur eee « slates Fa kee ; 4,000.00 ENSIiGE: Construction pics os PRewaale Wes od 15,675.00 Car ana Wine TALT GCGOUNT, ei wt ewes as ‘ 7,554.50 HOrses and moles, 6s cek ober ee paw R KRG i 5,600.00 ROCOUNTS TECCLVSOLS eee weee Manan tances ce ole Lie Ow Bills receivablé,...... Sin bs See eee 10,000.00 Panthelnatock ercommonssit.seeakeod. vel $ 50,000.00 Captiat stacki-— prelerredys seein sc ccses 100,000.00 OORT SOLeSlo6 nr h4 6 tees Ca oe ee ne 257,890.00 BORGUOR LORS OLS se 5 6 kes ond os eee PEERS 12,500.00 BUBDTMSEG TER ws ei Ks ee eee cee Set ae RO 17, 709068. Depreciation on buildings and MRE ROMY fae. Ware ORE Ks a aes - Verowee 12,000.00 SUPPL LCas. Ge eurdee. Sev. oa Trg we OES ree 8,240.00 BEV ePGEEre CULSIGS sg 6 0 ds sic cease wa Ke pe ‘3 24,701.50 PAVE COAL OLGA, cece sv scence cena ee o6li®, 434926 PREP EGS -WhOUNT PEE CC ese cc ke weve ws Bead rh 6,000.00 POceeeeGerenOr Tice clerics .sces nee See HY 4,500.00 Office -expenseyé....+. sade Vek a ee CES 1,247 635 GOnNeradl GXHSMSC Gea. re deceicwan pains wa a Oh 750.00 OPaemO TON DHIMPIECS, escrasuves anus 4,000.00 Insurance (expires July 1, 1909),...... 5,500.00 PApSergotd vOuLGGOLOeS , occ te va ena s POLO 4,075.00 RSDSAMS PYG pc ONS tCPUction, ... see ws wh dcdd ‘ 5,445.00 PGSM GIOSNGE 2 6s eg Fillies ee ew es eve CRBae 1,500.00 Be SO eek Pe a ae ¢ MOVE 4,500.00 HOV Cyr COUR Pe daiidid i. oe wenden bn VeOs 350,500.00 WAGOKR, ws Hex els WRG oe dale 9s Ck es earned ae 800.00 PPO EGRET. oe MALONE Ds nu olds eo wwe hseeie’ 935.00 DINGS [ANG (Prong ya ed Mawes oes Pee ee 5,475.00 $450,009.55 $450,099.35 __ rt ee os ‘ . The total output for the year was 152,300 tons. An examination of the books and records show that the follow- ing charges had not been centered: horses and mules $2,200,car and mine rail account $1,450, claims for injuries $1,000. During the year the bookkeeper through error cherged to Inside Construction $3,415 instead of to Pay Roll Inside. 164 agi SEL .OW MEIGORT | (aoitsctmext .Asd.9 .¥.M) © ea ante & : 7 ® hod ™ is Sees gir beettt fso0d orfi to eonslad [sits & et getwolLlo? edt 00,000.08 00.000, 00! 00,008,728 Se Ss | ' ‘B00L, 15 sedmesed to as ymaqmed dnemge feved 30ef .f& ,O8@ = Houagad JATHY | 2.5.2 ¢ anlé alee Kon s's Oh dpa son secre saneeS 00,000, af ceeeeesrenseeee eee CAO Sem Oete yovise td 00,000,3 ais Vnleachc cee pb eae bb ee ene gofTto 00.000, 2 dade veces cs eee ue heels CREE EROAEE 60.2eVa,2 cheseecvecercesesceghOssONeeenod STent - 08. D520, ett whew es sore eg dtooos et eniin han aap 60,.005,¢ CURE Kewivascnvacendd seaeeeelaen Drea. 20e8%0H oS .8£1,8¢ iS easwercesenevess eqg@OlLOSVieoey GIMOSTA 00,.000,0£ is URC a de ced eteee Oe eA OLORULOCn Gao La beeeescesoceese gtommos = Asote Latiqad . «hea ee owes e ee DOTROTENG w NOOFS Lely aao’ a Wei Am Ade Aiki gy gus ereerar se eee ey ee er eee +. Sldsvag egavoooA © Wideaekiinus © Walle, teselit Abeie ws ioilb’ 4/8 40 Gey bes egnthiind mo aotiekoeuged j Perry Tee ee LT eRe eS 00.055 8 er re ery Ne ee re, 08.f07 a8 opeeteenbesccoccseceusQgonseoue = [LOT yar GBQwBSH OLL swececwecusvssvececwe G@useta @ CLOn Ges CO.000,8 § beawedscestegacengeQu® evuvarm 802 78.85 00.008 ,.2 erasvewebdeveteg@utsld Golite = settaiade GCs TOEs eee cere aa seventeen es see ageenegne en trt0 06.087 cbabeeveceeterebone eed s pOMeOusne LAe amerew O00 ,O0Gas. 3" aa dum ceeccseccseeghOLMULak SOT emkaio 60.908, wovceeg(QOCL .f viul estiqxe) sonaiseal 00,790,8 VO @ie oe we evs bes ed pale 66g CONS ODEN Oe etisqon 00,352,6 cesersesnwcnces gMottourasencs of etisgen 00,008. £ . | sveevesccnsunesunsecades ae G@GHORE Seuam 00,.008,.4 ve wales ee wee © elk a oie 0 eg ORTON RR eee 00.008 ,0& ee Terre er yrisyod 00.008 ee er er rem we re me ee 00.82 jig LAS. kerma he oe eto i ns Bie aoa ee 00, dV. ¢ Tor rrere Te Tene et le Orts sodmiT ewolfot out tect wode ebiooes bra afoot oft To motianimaxe mA Bas t89,00%,.9% cesium bas nestor sbetedno meed tom Sst 20 ent aniuacd .000,[3 estustat tol emtslo .083,.f tnyooos ne notterrtnnod shtenTl ot bearsds torte dyvowit teqeeddood oid T89 ,eStent ifLon ved bas | Lo The coal is mined on hich averages sO cents per ton. ace inventory is as foll arin and props $1,500, powder $555, oil etc. $175. In preparing the above sta ‘tenents, allow- ance for depreciation on buildings and machinery may be con- sidered at the rate of 5%. Prepare income and profit and loss account and balance sheet, as at the above date, shov ring gross earnings and net earnings, also the average cost per ton. ia Pe a5 ee . 44-3, PROBLEM NO. 1335 GPE 908 Rh ae From the following, prepare these statements: facturing and gross profit, and net prorit, Gross Sales Return sales Trade discounts Commission for purchases Traveling expenses for buying Allowances Cartage - outward Freight - outward Raw material Freight - inward Cartage - inward Productive labor Storage - raw material Unprocuctive labor Income from real estate Cash discounts gained Insurance - tools Insurance = merchandise Taxes - personal Depreciation - patents Depreciation - furniture and fixtures Depreciation - debts Ref. 46-1, Examination) cost of manu- cost of selling and administration surplus account. Power Factory expense Depreciation = tools Depreciation = patterns Depreciation - machinery Repairs - machinery Increase in inventory Selling commissions Salesmen's salaries Salesmen's traveling expenses Officers! salaries Clerks! salaries Telegrams and telephones Postage Collection and exchange Stationery and printing | Boncing of office employees Directors' fees Interest on bonds Interest - general Upkeep, taxes and interest on . real estate Surplus former period Salaries of watchmen no ¢ Su, sida TST age yebwod ‘ geo 0S Boget “109 od ‘Yan 7 vieaidosn ~voOna sonsisd bas agains CSL bas s sgakb Lind mo MOf eve dotde saat au mantle ef [soo saT bas tedukt sswolfot as aN yrotneval sAT Pats -«dte {to ,9ae¢ letgeh to sons + sit te borebis ’ ‘ e nf A eve to tmooce eaol Bae tttora bas uate Ssteqexi tou bee agniinrss ssotg qniroda ,stsb evods edt ta er mot 184 taco agaxey® out cele Ceara - = ~OM, WIIEORT (notseninaxA .A.7.9 .¥.i) 1 - * “UiTsm IO mot wh » 7eog tontelaterda bee gitiise to Tswot Ssensyxes yiotos efoot « mottsioetqe’! enrottaq « nokistoeuged Aa hs ingdonat « aofsekoorgoad ytoridoeam =» stleqon yiosnewnt nt seasstoal enote etamos antkiflie2 sotisiae pe momest ac anifloveyt e _fromBelsé eetvatee ‘ evteotti0 eotisice 'etaelo sonolqele? Sree asnatgoleTt ; eagsteod exasiexs Pasa motioeliod antining Baas yienortart? eooyolqine S9EFZO to gatbaod 26st 'exotostid B9emeGqxe 2orod mo teetetal . fsteneg - Jaotednl no tesistat Bas e6xad .cqsevqd~ otatee I[rset Solisg st9mot euiquvé oormdotaw to estenine ratcemegste seald esaqetq ,gntwolfot ot mort titow seers bce sntaustost $209 .tavogon aviqauve ,¢ttorq ton bar eeis2 22070 ; eoise siustos etavoserh ebart 2oeariortsa tot soteaimnod aat¢yc tot eseneqxe gniflevarT esonawollh Srawtyo « egsdisd biswino + tostert {sitotem wet © Hiswrt « trisisrd Brawnk - easdiso todsef evistorberd ‘Lebasd an west «= 236%0t2 socal evitouSsorant oteteg Leet mort smooaT bentsg etmuooelh desd | eloot « sonsitwent ealinadoiem « sonstuent cagaspe e: - £OxsT atnoteg « aolisiosaqed bis stutinivt « nofltaiosiqed eotwssxit atdeb «= aolistoorged pled) , tos nas pie’ Ze a as » 4 if 7 we a upndiw eo ay ‘ip i PROBLEM NO. 134. 130 (N.Y. C.P.A. Examination) The directors of the Red Indian Coal Company have requested the the company's aucitor to prepare a profit and loss statement of _ the company's operations for the year 1919, such statement to show the profits for the year, the amounts due the four salesmen and the net income distributable in the form of dividends, with a recommencation as to the amount the directors may safely de- clare therefrom as a dividend for 1919. You are expected to furnish a balance sheet after closing, Under arvangement maae by the sales manager, with the approv aloof the board of directors, four of the salesmen, Smith, Jones, . White and Black, were to receive as compensation, in addition to their salaries, the following percentages of the year's earnings, measured by the net income: Smith 25%, Jones 12-1/2%, White 6-1/4% anc Black 6-1/4%. Furnish the financial statements as above requested. © . TRIAL BALANCE, DECEMBER 31, 1919 Real estate, sees. p oees,000 Canital ‘etcties «ies. +> $422,000 Plant and machinery,.. BU OOO Gales. esses o> wan ete 438,350 Patents and goodwill,. 160,000 Accounts payable,...... 20,000 Inventory,Jan.1,1919,. 5G,000 Notes payable ves «ss sss 52,000 PUPCHESES acer seeseesse 165,000 Dividends on stocks FROGS ales wie en wee es i vege R1G,000 WG OC os Gnas as he ee hw one Po 3,000 COGD ob wee’ aa bcuseae ee a2 UG) RENTALS 5s os matinee oe cas 4,000 Salaries, general,...«. ec ,000 Salaries, management,. 10 , 000 JNSUPATCey sc de estes ee 8 1,750 ROPOINS (view nee ree eens 2,000 Claims and allowances, 12,500 Prepaid freight (in- cluded in invoice WSC) ans ow ee enone ° 3,000 Interest and discount, 1,500 CST eax ce 2 ews a ass owl 16,000 EAVES EMCNUS 9 t550-5 06 one 31,000 Miscellaneovs expenses 8,600 Accounts receivable,.. 84,000 PetsCiesoan. 1, 1912, . ARG 8 $939,350 $939,350 eee Inventory December 31, 1919, $°53,000. Ref. 49-3, 164 wef OW MAIGOAT (mottentmox® .A.T.9 mt ye eit beteoupet oval yneqmod £80) gathat Sof ol? to atotost£b od? seof has Sktota s otseqotd 80 ¢nometsase ~efef sav Sr? os toomotate rove memesfen tuct ent eu etmvoms off dtiw ,ebrohivtS to #05 yistse Yan ot betoeqxs ofs voY ~2LOl tot ot sott Ses tot enotisisge ,teoy ont tot esttorw edd wore axe? oft oft eldatacdtiterd smoomt tom ent brs sxotoatth ett tatvoms oct of 88 motsehmommoooy & Ancebivib 8 ea morleteds otelo e'ymagnoo ot a’yasgqmoo ort .paieolo tatis teede eoreisd s detoru? worcas oft AtEv 2000 .itina Og mottr5ss as athiy RS\l~Sl senol ,ReS Atime on etaometeate [atoaant?t ont celaiwe arer , Le Aamo 6S OOO. SSSS so cicsvss ..woote Istiqsd 900,30 @ O@E BEB recses vevvsecees ee ROL8G 000.08 9006 vessengol@eyaq etnvoooA 000,00L O00 , 36 ° eee ue ideyeg 26304 900,8¢ elnoge mo ebnestvic 000,e3L 00.8 ‘ssecsndmen eee g DOIWWO 000, 6TL 000. 2 ol) Vg ial savccsgelsenmen 000,S!f | 000, 8 900 , OL ost .f 600, O02 , Sf 000, 008, 5 900,4£ y 000, 1% " 0039, . 100,28 ess 600, 8 O2% tee oat 2702 ,000,e8° 2 ,erer ) ee BOL ~rensaem eofae ef? YI Soar ; cameotse oft to wot ,etotoet£d to hrsod sit to fis .noisrecsqton ea svieset oF Sew ~eunioiae e'tssv acd To segsineo ted agiwoflfol sat | :emoork goa erly Yo Hotvesom | RA\L+3 ary \i teomeanets reba ost! Sne ot icih ,cotisise asatorit foeld Das RB\1-8 -botseupet svoda- cocrccneneq@eaeee, [807 .-.yrsnitosm ors taslt selitwhoog Snk esnetsi cl @l,f.nal, yrotaeval ons essen chosen eens (cwsedhans shee oon a) se bkes pee eoee, Lattoneg ,eotisifec . ,doromeganam ,esirslsé us enecwee 65 gO DRO IUBEL scecwwse senses eb tleqon .eeomawolis See emts{[d «tit) tdatert biacqest eotovnt at boehuto seeisenemsan eg eeer te ,imyooeth Sne seovegal WeeTerery cr ss onereessae g eoptoiis count | senroqre evoonatlooe iM +. oldavtecet BINVOODA oeeiel AS ce., troited Oe . .LE tedmso9ec yrotneval .5-Od . tof PROBLEM NO. 1355. Lol (N.Y. C.P.A. Examination) The Clar’: Company publish a magazine which is issued on the 15th of the month. They contract for the printing and. oe and make equal semimonthly oayments to the contractor A summary of their transactions from October 15, to December o1, 1918, is as follows: payments on printing and binding con- tract BOE 000: subscriptions obtained #40, 200 of which $200 7 represents unearned subscriptions; office expenses 4, 500; ofrite salaries $10,000. The office equipment is valued at $5, 000, There are unpaid subscriptions amounting to $17,000; cash on hand $10,000; wunpudlished manuscripts $4,500; due to authors $2,000; accounts payable $4,000. The company have capital stock outstanding $25,000 and a surplus on October 15, 1918, of $4,800. Prepare a profit and loss statement for the period from October 15 to December 31, 1918, and a balance sheet as of December 31, 1918. Ref. 50-1. 164 kEL | acl. boy 5 ot a Heri se beneet. ek fotrtx ‘onbead , {een 8 Sie Rattaiatq ons tO cotositines ent of ednomeag, (i |! 2 Ae ‘Fart ie a . Medmeset ot cf « ehnoo gatbrid Sar saiiniag mo esaemys OOS? tok: tw to 008.086 Aemkaddo pads 000, e9irt0 -004,S¢ eoemogxe soltto ,enotitc ttoed a : on ery & a ,000, ¢ te hoentov et soemetupe peda oat -000.0t6 oni se. ey... to fepo ;000,%L@ of gnidavome anotie een ell ete ews ‘exonddue ot oud £008 hi i haar ngeete yg 7000, 0f3 Saad Yooye {eticra oved yasqriog Sat, “gdroo08 + - 000, 2 ase gntbrataduo P ,008,82 to .8f6r .af tsdot90 mo aiteue’ 8 das OC | mort botteq o3 tot jnomodate 2eol ons gPtog & ersqeTt ? to es toorfe gonsiad Bs oe i: = xodmeged of 3f nedotsO | «BLL ,L8 asdmooed Le has UT [+08 ted PROBLEM NO. 136, Los (N.Y. C.P.A. Examination) The treasurer of the TritePnhetenwt Manufacturing Company sub- mitted the following figures talzen from the ledger ae ‘tae fas gone representing the sordition of the business, De¢ember hg ‘ :. OG a eae es es is eveceeeely SARA «a. ‘F,500 Accounts yniekii nhl seen... oe eae 45,000 NOGCSS TECCLVADLES) espe asererossececcsnsease 1,875 Inventory: Rebn mateo.) 9 umernaue xe cinta sp.» Seda re SD fo in aS ves venenatis 30,000 Manufactured, BOGUS sis wei ee ain .e 0 16,250 66,250 eons, Daves scien inie ne.s.» begat egipey ss $ 5,875 NSCES PARVATI aay dstalewle eens elses ere eae ses ° 20 , O00 Capttal «stock, icrireruouueas $.96,.000 eae ro ee peede 80 , O00 Prepare a statement showing any discrepancy that may exist in the above figures; also a statement of income and profit anc loss, and a statement of assets and liabilities December 31,1912. nr Ref, 51-2, SéL | asl OM MEIGORT rep {aottentmsxd .Ast.9 eXelr 4 | - | 4) aniwtoelsne! Lanottantetal eit to totssone si? agin ti ot | ae soghel edd mort mols? soiwy3it gniwoflot edt bettim odmesot ,2eontenud of? To ngkditeas oft gatimecotqos feta & 00e ,F g cov nevvabesng' oe6 606 CERRwEREENTOS + ee ghBeU 600 .¢ ecncenenseeca bes o0bese rs einrosoa eve .f pevseresescoressensergees gOLdaviones 29%0" ) PYAIQOINSV 000 OBS i+ 4 +t Cae aa OO «' ers 2 Ee SS O48 ,60 O88 of wesnssvecesegenoos Semeostrrsi avs,3 & Ves Se eaten tevaresrseenccee SLOL LE xedmeoed ,eviquve 490.0812 680 ,O8f¢ BR bowocl2 eno tomiot se atiw tremotete eyoca ect to aoiveqnos A betosaxe bat anxotooath oof .06S,09 To ,Polteqg oct tot ,e2e0L ton . yc bentstdo digest an me anottstesgqxs «ted+ gaitesd ,éftetq 8 ett tot esfae to omulov ont of enotesfuolso teos tkedd gatyiegs stotiean oft etentteoovnt od tastnyoosa ns hevolames vert Sas ,Sotieq enccots oft tevtic o¢el beeolo mosd Sar etnvoooA Lanimon oft ILA "eo otoviscs me Sos .tros0A e#ol Sas FEtoT eclt to garmook Sek saniwoffot edt beaofoeth etaveoos second :bolaeq to antaninzed ts yiotneval | OO SS Bocce newer es vernses se eg cHhROSeM war 003, 32 0 ach ellulsdie wanda dbs wee wad ae 6 see 000,c¢ cescwesecsevee pf0D00R SOtusoOSINASH 000, 0¢ vieepeseces gDOttog gakiub seeniotwd 606, V8 ss a 0: aw ce MERA Thea ee 6) 6: fea phil er Rak ance O00, 0£ ae cea RumeeaTIe dig a isa ecle oleh an eel ee 688,93 ogo, anoteeimmos ,eeensqxe gnifovsiT O00,ef a a on wo Ms ee aan ne die ae O3Y.& oo « wh alld guile <4: tleatigl i oat ales ee ave.d ee 00a, jas cue naprieacdizaks vee sgRtOtees oo mame ase. . ca whe ga & Abita’ Wl Os eee aee ae a Ae ‘900,088 » yo a, aha seat bos 5 an eee neeenee OORT wees ew ecn ew atecs tens geonme bormuden ehtosst teoo art vo ovode todel bas Lelastem to aolis¢muasnos onT ae aw 000,ch re ** so ore talbeehaba hall iil! alates aieiats Abie Cd ane O00 O8 swe ne uo ola! esd ete: icdh bile hie Menace a an mt jeixe yen FETS vyonscsiselh yas grivode tmemecste #8 stages | yeeo!l xf Jitotg baa smoont to Saemedste 8 oels yeotwalt evods att Sf0f, 1& rectreged cotsificelt dae eteeaes to dmomotzade 8 Sas | 8 i) wee ’ +a- {é * tas sdf : anes Ss rea “oleh ' : ‘vil oe > * aad —— 7 a wh gacsucvcndues desk eGlLany ee Geomceon 900,08 cukesd tbe cade. SRS 6) ae —patot. 600,08 5 ob U hice bs u's) 6 algae Rages jailer cnanae fsticed on 7 . ; . " t PROBLEM NO, 137. (N.Y. C.P.A. Examination) 133 The following is a trial balance taken from the books cf the Butler Manufacturing Company, December 31, 1905: TRIAL BALANCE AECCUINES PAVED C ace cmaeae tees sw 0 tes meens tad 5 oie Recounts Proce i yables aaseee seep are ci cst he ¢ 625,000 Bonding of employees (office),....... $384 625 Capital stocks seven ece pee ge yawns ia wig eat . Cartaeer OUCWEPA sees Cae eae ee bebe e sre th ad es 10,750 Cartage inward, cavs & -\@ Aveo ae ‘ : , af iis a r 1 a i ae Ps vr .2eL .O8 ants (tck a ey 3 OS aaee Bet (nortenimaxd pAeTeD v4) >) Se rest f yraunst .yregsoo voote takoy & to ¢ exe eoasisd oT rerteatia To otase gatwoflot o3 awoe — 000 008% «+--seeeeloods Le?tqad nego, etot L999 Fe 000,52 ¢ iis. an vie gee Stee igor 090,28 pe eyronicoes O68 tralt , 5s age*tor 000, 3f£ vateae ee oweege | ‘efile 900 ,,é4 sess (aMORBYW 002,98 oe | £{Ltwdoos Pits +netset 000,08 ee ee seoren PP Lod grodmoval esol dns titoxd myooos 000,24 seueeeeeoeee ee Ss oe aidaviosst atMVvonoa 002 .O& - eerrrree 000, ce 900, S$ ee ob oe gene at mae? : 08, avs? eis | O08 ,avS4 ears ea ae siiood eft to 7hous om tatte .893f .f viteunst retest 139% A. {ed oft ,atnsos9s Has -ewolloet 88 epbaeie seore BOs 000,83 4 Le Wile faeR 000.0089 usveweequacee fattasd i :ytornicoen bas taal \2 gage ,etos Lbexd see ,edagooos : real me | «fl sons {Ba 000, FL we nee 000, a3%. ee ee . TeBI ; 000,23 j suet ease tees eOBRBS rom “geol Sas tLtott aoreh seal o02,ay 906,58. weer Ol Peto an ;tavooss ue vy, bee sgevtou . Jesf esonelsd : eNOg ew As 008, 084 on 6 ae eee etdd trtovt rat, eons iad 000, eL¢ sale gt COluae O08. cs OOS ,e3 oe werceab aed oar. fe 88,8 eon MOfSBED i fess See Braoret {Crwhoog see veeeag® and, OS oe ein 42 2 BPs Beebo: «eee: wooo ees g COT MEY ’ : O00, 56 « Gldavisnet e+ srO9RA 4 OOO, 21 woe edrrond aowrts youens : Oaf.is a eane sees mene at deseo, e902, aes | 008 208% _ le Dee , | | | r fon a tser oft tot tet nese od Iftw tt gntensi? anit mort evroset etmyooos oto of iriw ~hemrae 199d esr: 289 To . #Ptot4 3 +6 gait esol ef Sten ne sonsiad meee otf hora ,Toliame ots side $.,maey O09 to ackamiged add id "pksq mood omtt 7 .gsom oft of sant Drebivib of peatse etilotd ett Lo eo59 PROBLEM NO. 140. 137 (N.¥. C.P.A. Examination) The bookkeeper of a manufacturing concern could produce only the following statement from its records on January 1, 1907: Manufacturing expenseS,......ee-ss-00+ § 4,622.89 GPP2CS] StOGK seme atie ce Che cscetincseemar 10,000 ¢Q9 ELQrve: ANT SGUs Ment, coer cena ce es eaeteee 124, 000600 BTiS as nee Oe ee eas bes ab a'r es cb ewe e heme 832.14 POSS TOS ee we its 6 xo 6 0 6s wee ee te ee 4 8,469.10 First mortgage bonds (due Dee.31,1907) 15,000,00 Materials and supplies (inventory),... 4,289.34 Notes Payvetle, vans viene ore ey 5,000.00 BQCOUMGE PeCCt I VAL; sine try ee see anne es §, 4235.23 FSC OMI ROO, wes o us.0 3< 2 ce bs's 6 Siete’ 2,436.28 anverest on bonds (7 months),....6.ss< SIS ete Interest on notes and accounts payable 282.40 On January 1, 1907, the management is changed and you are later retained as a public accountant to conduct an examination and prepare a balance sheet as of January 1, 1908. You find that during the preceding year the directors have subscribed in cash to $7,500 additional capital stock and have retired all the notes ane old. accounts payable and that no interest. was paid on these accounts for the year. You also find that the plant and equipment was revalued at $15,000 and 5% of this amount was charged off to provide for depreciation, while an additional 2-1/2% was ordered placed in Reserve Account to cover repairs and renewals, the entire 7-1/2% being charged direct to Profit & Loss. The bonds outstanding fell due on December 51,1907 and were paid, principal anc interest, in cash. An inventory of materials and supplies places their value at $2,528.19, the practice being to charge all purchases direct to Manufacturing Expenses and to credit back the amount of the inventory. The accounts payable (all for material and noninterest bear- ing) amount to $546.28... Of the accounts receivable, January 1, 1907, $4,968.18 was collectecac and the balance charged off as uncollectible. In addition to the material used from stock during the year, and the amount still due for material purchased, the manufactur- ing expenses were $3,720.52, all paid in cash, the total’ manu- facturing expenses being 31% of the gross sales for the year ending Jan. 1, 1908. Of these 91.3% was collected in cash and the balance,all of which is considered good,remains on the books in accounts reeeiv- able. Produce a comparative balance sheet of January 1, 1908-1907 and state the amount of gross sales for the year. Ref. 24-3. 164 ont Om scien (norsondmaxt & ce oeceeetba see q QQGneume qehens b 00.000, OL we renee err er er ere here ee r, piace da eee ee er ee Gnenahiiga ; $1.$te8 LUI e seep anenpe res eeena \ Or .¢oas,8 se eee sovesvhaeeeas ees eu @heeme A 00, 000,85 (WOOL, [8.907 ob) ebaod sgsgtiom se, 06S,2 +++ <(erosmeva) eotiqque ela = 00.000,.¢ * eevee eave ee ene eee ee efdevsq Besoll : ‘ ES.¢é:! gaa ese eeveweeerr ee woe yp SLdae 9987 etovoook - : re GQ.,052.3 «vases ch bn es eke eommeee gOS OSUNG etauoooA ay E0F ecvweecse(ecaccom F) ebmod m0 teoretnl Od. 88S efdeyagq etaseoos baa eoton mo teorsial De eet an al = t ets soy bis bogmsrio ot tremegsnam odt ist a0 motisafmexe ma towrbaoo of Sakencninal pris ay ; - fave r9988 te .800ef ,f ywiaugmst Io es goode oonsisd g etaqo 1g evar! ontot oe wtth off as9y gaibeoow edt shy tet? batt vor aya him Moote Ladiqss Lenotstbbe 00@,T% ot deso at peditoedue Oft + att bra 5 friaved etnuooos BbLo es eoefon oft Iie bouttot batt ceils vwoY. .tsey ore 10% adauooos eredd mo blag esw teviotat to R2 bas 000,219 ts Beulevet Bew tnoemaiupe bes tasiq- edd tect efidw aol Saiseyces tot shiver oF Tio hexntario saw gavoms e@ehdd 1 ot tanoo9A ov cheat nt feesiq betebto caw B&\l-8 [snottrbSs ms ; Poetth Ssogtsie geicd Ro\r-T ortine odd ,2iswonet bas ext tt toV09 tedmaoed no suh {Let afi Lhored es go ebraod eff cool % EtoTT oF ae .fleso ME yt taotedne Dens iaqtoning ~bisq e1ew bua yoer, £& ts eulev viedd seosla sontauee has efettetem to yrotnevat cA oe ot tooth nenanowe fia gatero ot gaied aotioatq oft .eCf. BSe,89 : eit to truome oct aosd tEeto of Das noeneqxa gubastostonsM . exeed teorstninon Sas Saree tot {{8) occer gy gtaao gee ot enw 8f.50¢,99 ,VORL ,f yisunst eee etnuooos edt tO Loldtioeffoons es Yio begtsdo sonesied end Hees hetoel{ioo etaov odd ant < « 6,000 §, 000 Reserves for depreciation... 3,000 6,750 Gecd@i it. «acess +e: 25,000 25, 000 DESCOunt’ O71. PONGS; 6 «15 ea ees 1,000 Gah. 2.4.04. 8....e0.. . 28,300 10,500 Capital stock; Accounts receivable,.... 29,600 26,550 POC rer Pong yk es os eee ape 150, 000 150,000 Investments - bonds,.... 45,000 ESCHIMES < Gr atu a haces oo lpee Bee eee 50,000 50,000 Inventory of soods in SUPrplus , 63.45 aeons ee ee vies 14,050 $1,980 PEGCCHS , «tem sews st >< - 10,800 14,620 Ro) Inventory of materials a anG? Supplies svr..s.... 6, 750 10,3500 Agency investments,....- — & 680 $267,950 $281,020 $267,950 $881,020 Together with the above balance sheet, there was submitted to the board a statement of in- come and frrofit and loss showing the profits of the year 1911 to have been “28,120. The directors state to the auditor that in view of the decrease of cash and accounts receivable, of the absence of dividends and of the increase of capital liabilities they are unable to ascertain what has te- come of the increased profits of the year, The auditor prepares and submits to the directors, be- fore the meeting is adjourned, an account provoerly named, ‘hich is so arranged as to show clear- ly how the “estern Company has applied such resources of the year 1910 as have been lost in 1911, and the resources and the profits of the. year 1911. Prepare the account submitted by the auditor. Ref. 32-3 yrenere eye seoonng Penge eees pts sng pon ox fae 5 . Soe vas Leponuces sug ge Exouyee of fps Acoe jar’ | “2 823 won fye ,Ssafery- OLS FS pea db 2 38 | we OL SNS FUG on TAs I SUA pee gbby 36g enc 3 Leeonicss ot ope test toro $k PLAS pes joes | gu sccomps bhovehyA wureg* apfcp yo eo sinsuiog se go eyon chee. broprre Of fps Aes” Jue sMgTpox brchsxsee syq: SMpeT ‘SS g£O FPS Nts q ot ‘Eye yuctsreas of Cubyfey sispryrgyee gpeA sre MCPTe FO CacexpoTU apyg pues Fe ire bo Acad Ti AjGu Of fPe gectevee of csap sug scconupe LocEeyaspye” oy Pageee: ee evouyue epe broyyige of pye Aes FOTT FO poac pect 233° TSO" row aT Rea ‘$poas psysuce epecs* fysks ce enpmyfpeg fo fe posigq © egsee SLL LS} ST pseeg oy aes Of AvTN68 Of LFororA apeee Iu epe i pESUC q nr ee ot ee & . Ss - FIT9 ambby ree" Ova vasaka o* 4R0 T0*200 [TNasurotA of nerfexieye | , gt ee ae Fee oe tt ee : To"sa0 Te*es0 - -wacupoxh ot LOOdS qu enzbyae**- ee ee ee ee ee Ee juasermeuge - pouge’+::* , Te*000 Gaeereny? «s+ owes ete has os cee : = ‘¥Yocornure Leceragpye****+ $9* C00 S6* 920 Beet eticg* «+ =+--- PeRs + ome =~ Feo ee T20*000 Be. cvap*: ye eee WS ea Se © ota pe Ca = 88*200 TO*206 cobr¢stT ALOCKE? = qQoogeiTT’ Ost asa enes hee ie £2*9000 $P* 000 Dreconuy ov povae* ee ees 6 eus ee T*’ 006 EF 0 Se, Se ees 5* 606 2*900 Heectass ron cebasarsgjors: $200 2° 420 — Hores* askow ong psivece TO’ P00 TO*P00 )«=— ss w@ee@nuer Porkopretet+c ese rees re’ T00 78*°220 © WeopiverA sng gooye**--- 2900 += BB*000-—- WOrer Bekzprat esse esses: ‘** £ 9B%Q00 8000 Barrayute’-- Sve@eteoes ease a oO 2" 000 2° 000 TAT DY +< ae ee ee osetee et teen vrace .* a * So’ 000 Pe mo ES oe a eo a PSs ay % ' " ae reytey : #> - he Lo c - ePSOG 0° 000 SpP* 006 porg svc worphse |} pre = Ysera Fs\ar\s0 TS\eT\sT rropryreres ° TS\eT\To. IS\er\yT a DRGesuseg £0 fs postg Cf qiksefote oct spe jeefery CowbowA og ppoys vecgruG of temaAszA p* yaqs? R ay LPG Loyyoazue se gs cowlsiesyac psysvce epcer ag Nooswpckr of* Taro’ suq sf Pscewpek oy* JaTF” = ces {u*A* G® b°v a a ENMGMIVEL TOU } SHORTEN HO* TeI" (Ii The Jones Investment trolling interest in B Company anc © Compa at June 30, 1616, are Jones Debits ment C Investments in other companiés: A Co.,60% interest CONSOLIDATED STATEMENTS. 139 PROBLEM NO, 142, linois C.P.A. Examination) Company on June 30, 1915,obtained a con- three operating companies, viz., A Company, ny. The balance sheets of the four companies as follows:- Invest : O. A Company B Company C Company (cost $900,000.00) $1,000,000.00 B.Co.,75% interest at G0st. a" + 6 600,000.00 C Co.,80% interest Bt COSG” "so uw ice ee 4 200,000.00 Advances to A Co. . 100,000.00 Advances to C Co. . 50,000.00 COGNAC ea «4 « 50,000.0033 100,000,005 10,000.00% 50,000.00 Accounts Réceivable 100,000.00 50,000.00 100,000.00 Inventories ee 200,000.00 100,000.00 50,000.00 gL) ll hair A 1,000,000.00 600,000,00 400,000.00 Dericit’§ « na ee Total Debits | Credits Capital Stock Jones Invest- $2,200,000.00 1,400,000.00 40,000.00 ~ 800,000.00 600,000.00 $2,000 ,000.00$1 , 000 ,000.008800 , 000 .00$400 , 000.00 mane CO's «se lua 100,000.00 50,000.00 Sire *b eos cle 200,000.00 _ 300,000.00 150,000.00 Total Credits &2 200,000.00 1,400,000.00 800,000.00 600,000.00 Surplus and Deficit Accounts as shown above may be analyzed as follows; Balance to June 30, BRAN ae gh pee $100,000.00 $200,000.00 % 4,000,00. $100,000.00 Surplus Income: 60 months to Dec. nS are $7 ee 180,000.00 45,000.00 25,000.00 6 months to Jun 30, '16 £1'7,000.00. 220,000.00 40,000.00 25,000.00 Increase in value of A Cl.Stock s ., 100,000.00 Dividends Paid Jan., A9L6 » at sds 217,500.00 300,000.00 50,000.00 Balance, June 30, $200,000.00 $300,000.00 40,000.00 150,060.00 ‘16 , Debits $200,000.00 $300,000.00 164 ee ——-" “109 & Benistdo,3ief Of enwl mo ynsqmod Inomtes virragimod A wativ ,golnagmos natserveqe ootd? te dotnagines tol edt lo eteecte sonmsisd eiT .¥ae yreqnod 3 00. OOO 7 «Oc iQ 60.000,00£ 00.000,08 SNE A tte 00. 0 v0 ‘. D090 ee ee eSdf ,OK MEIGORt (aolssnimexd .AsI.d #:swollot- ag «teovnt yAtsqao0d & vyaserod A£ 00.000,000, £2 ita 000, ¢ —00.000,008 00. %.600,0£ 200 900, OOL 200.060 00200063 “"00:000;00L ve 00.000.00£ 0. as 00,000,008 00. me 00,000.08. Od Late 09,000,008 00,000,008 Jf 00.000,008,.9% = e sOO A o¢ ¢ e602 0 of poncaee™ eldevieoes gonzo0eA * 00.000, 008200. 000 008200. 000,000, £300. T0000 ie 00.000,08 00.000, 005 99.000.0af wane 29 :900,900E 00.000, 008 oon so ee ae 90-000,.008 90,000,008 go. 200005 00. 900,008.88 00,000,0053.00,000,2 # 00,000,008 Aiea a ten 00.000, a8 00,000, 28. OG. BON, OSL 00.000,02 00.000 908 CO. 000,05 a LC OE I A Ne epi pC ttolted bar exfarue iworle.as etarooo4 — besyfsene ad vem evods 00.000,82 90,000,08£ 00,000,058 60.000,0S8 Omer 2O® out ot eonaled :omoonl a s99d ot wigs pe 128. tetito 2-00 A “teoa) ea » « getvotneval > . > . tasls = + » «» #ktotted etided Lato? | esther » Heorte Raligus ‘efeevel esnot *- * +09 seert “_ * * ealquse be — atLBst0 LatorT rewollot es . . oe * art ams lqiue 140 Prepare a consolitated palance sheet of the four companies as at June, 50,1916, A Statement of the Consolidated Earnings and Surplur Account for the year to June 30,1916, is not required, but may be sub- nitted if desired. In preparing the balance sheet, the following additional facts should be considered; 1. The holding company has no other source of income than the dividends from the subsidiaries, which have been taken onto its books when received. In accordance with a resolution of the Board of Directors of the Jones Investment Company, the following entry was made on the holding company books at June 30, 1916: Investment in A Co. . . $100,000.00 Streive 40 wk we 2 ee el BO COO URO The inventories of the A Company include $100,000.00 of stock purchased from B Company in 1916. The cost of these goods to the B Company was $90,000,00. Part of the plant of the C Company was built by the A Company in September and October, 1915, at a cost of $80,000.00. For this work the A Company charged the ¢ Company $95,000.00. In February 1916, part of the equipment of the B Company, which was carried on the books at the cost price of $50,000.00, was destroyed by fire. The only entry that has been made in respect to this Loss was to credit the Plant Account with the salvage of $5,000.00. 164 en estnagnoe m0 eft Yo teore seroed 8 | . | ae nia a ay \ Ment seiaed end bres eintnel begabttoanod 2 dire od yam tnd ,bertupet fom ef 13 f0L,08 8 r a * | | Lanotd tbbs gaiwol{Lot erie aaecte eonelad oft 3 | . — ue :betsbtenoo § oft madt smoont te soroer tedte on ead wasye a } melet goed eve dotrw ,eebisthtedve | sboviooor nodw extood ‘BE etotootid to heeot orf +0 hoksetoees 8 dtiw eonshtosps a: esw yitne aakveflot edd yymagmod t¢anomPeevnt aanot, es (éfOL .OS enut ta exood yasqmoo antblod ert no 00+000,00L¢- «© » «00 A mt Inomteoval | : > 00,000, 00f3 « * * * * e A _* eu lone ” cae oo alt! i. Jo 00.900,00L9 ebufont yosqund A oct to eeftodaevet Aco 2. , seat lo teoo off -3fCL mf yasamod Fg mor? re ctr ar cee ae hia 1a eboog - 00,000,058 saw vreaqmoed & orlt A ett yo tftud eaw yosqmdd 0 oft to toetg eat to 40 teoo s te ,@fOf ,tedoto0 Bas tedmetqee at o ont hegraro bon A ae (heal atdt vol .00. ni | +00,000 dee .* : ane : oe Ht .vetsame? & edd %o saometsso@ ae te ttaq id rrandet ne at ait : otro ¢ to sotta teo0 oft $a exo0d sit mo tert yrtne yine of? .otkt XS heyowteeh eaw wile eo iu bene We ) sdt tthers ot esw taol eidd OF tosqeot at sham +00.000,82 ta oer ort atiw een OnE Noe a heb s , par ee a ee Ath PROBLEM NO. 143. 141 (Massachusetts C. P. A. Examination) Prepare a consolidated balance sheet of A Company, a manu- facturing corporation which also controls, thru stock ownership, B Company. The following are trial balances of the books, December 51, 1915 A COMPANY Debit Credit ‘Real Estate. ee . ~ $200,000.00 Machinery and Equipment ° . . « 100,000.00 Accounts Receivable ° ° P . « §0,000,00 Cash : é ‘ ‘ «. » 0, 000800 Inventories, Dec. 31,1915 . ° : 1, 78,000,008 Shares - B. Company(300 shares,par $100.00)eu0'% P . . « 95,000.00 B Company Current Account aera F * 5,000.00 Capital * ‘ ; ‘ ‘ ‘ m $400,000.00 Accounts Payable ° . ‘ ; . ‘ 50,000.00 Bills Payable . . ‘ F . ‘ . 20,000.00 Surplus . « . e ° ’ 19,000.00 profit and Loss for SLs . 2 ‘ 6,000.00 $475,000.00 $475,000.00 B COMPANY Debit credit Accounts Receivable , i $ 45,000.00 Stock on Hand, Dec. 31, 1915 . . «. 26,000,500 Cash . ‘ * ‘ ‘ «. « 8, 006808 Treasury Stock (100 shares, cost) . «bt OOORUG Furniture and Fixtures . ° ° ° 5,900.00 Surplus P ; 5 y ; § 20,000.00 A Company Current Account . . ‘ ‘ 4,500.00 Accounts Payable . ‘ ‘ . : ‘ 10,000,000 A Company Drafts Accepted , ° « ° 5,000.00 Capital Stock (500 shares,par $100.00). 50,000.00 $ 89,500.00 6S 89,500.00 The stock on hand of B,. Company was manufacturec by A Company and was billed to B. Company at 10% in excess of cost, at which value it is taken in the inventory. The difference in the inter company current accounts consists of a note issued by B. Company in settlement of a claim for damages but not entered on the books and was paid by A Company. The directors of B. Company declared a dividend of 1-1/2% on December 15, 1915, payable January 15, 1916, which has not been entered on the books » 164 " a 2 Ot 3 ets: «fe htiiioad .ciood edt to seonsisd {ated ons 3 iy #thend 00.000, 0004 00,000,08 60.000, 08 60.000, ef 00,000,8 00.0600, 20a? s?tHer1d 00,000,08 3 00,008, 3 90.000, Of v 00,000,.8 00.900,08 00.008 ,.e8 & LON aR Rn tee pee yeeqmod A yc tar on + eegaORa (nok darckmaxt A 44 .0 ations enient & ,yiaqnod A to tooce oorteied bese. .qirietonwo mpore ont ea Osage, oels donaiw | sido 00.000, 0088. 00,000, 00£ 00.000, 08 00,000,0L . 00,000, a Q0..000, 8% 60.000,4 00. aaa’ — tided OO, 000, a he , 00.000, as 00,000, . OO» 000, £1 00.008 ,.¢ 00.908,.e8 3 seturtos tuner es faicw Ie ,Seoo to eaboxe nt . barn aad mt gomevettLs sft | o «8 vd Sevest sfon &« To: etebaiod Dn ent mo botatne. tom tud 20 : nese ee ynacmoD .& Qe etosvoor £: Stapeeny efdsveq ,@lefL ,of . aiood edt mo Berean 1 _*» «¢« + * *#@wee ese © * — ca ee Se = oa a a * - HhetqeooA & etiaxt . (00,004! ‘Taq, eotade eee iad tadiqged yer te ya poner > *& 2 € 3 «24 -2— vers ae ia ine ar yd otetent B. dec, sotioane “nitty 00.00L ao “gm099A dood a » = » a e * * * aide JT atavoooa : * od ® o | [oscars oe » © * . . « en ‘ . @Of@f tot eeod Sas tf ‘yung & : eldavisoenh TROY . Bree. fe .oed ae no woot2 Bins . desd {teoo " sertacte 00r) “xoose yweseiT ie eowextt baa ews het 7s * # qmoo .@ 20 brtadt mo woods ect ay aqmed .d ot be: {itd es brs las raed rk meted et ot = | greTws yA sf enter mare ype et tye Fyrpaeine §) ect 2% inn Shee one o ‘yar | A is an operating company and B is a holding company. PROBLEM NO. 144. (From Penn, C.P.A. Examination) The Following statement are taken from the books of the respective companies, viz; A COMPANY Assets Cash ry Hand s e e Book Accounts Receivable ‘ ‘* Stock Inventory. . 00 Prepaid Accounts P 4 a - Sinicing Fund Trustee F Premiums on Sinking Funds Bonds. B Company Advances ‘ ° ‘ Inverntments,B Company Stock. Other Investments « ° « Plant, Franchises, Etc. 2 . LIABILITIES Book accounts payable , Wages . Bitlis Payable Accrued Reserve Bones : ° Cavital Stock Surplus . . Cash on Hanc : é Accounts Receivable Investments: A Company's stock Other Investinents Plant Franchises, etc. Deficit : - ‘ Accounts Accounts e e 6 68 . 12,000.00 » 8,000.00 » 50,000.00 » 12,000.00 ee fe @ *-@ 6 £& e e ® a COMPANY Assets & 14,000.00 6,000.00 &500,000.00 500,000.00 164 $ 35,000.00 25,000.00 81,000.00 7,000.00 15,000.00 700.00 45,000.00 25,000.00 5,000.00 1,340,000.00 $1, 578,700.00 # 82,000.00 65,000.00 750,000.00 500,000.00 181,'700.00 $3,578,'700.00 S 20,000.00 1,000,000.00 1,250,000.00 ; “bat ry ‘hae it oabanadl Pas nt bore we ve ett eyrregiios gathfod s ef @ bas wenn cures evitoogeos elt to 2tood 29 mone Reins 7 ae jp Bet Pe ' veaanoo A ee atoeea 00.000,38 2. a 00,000,288 00,000, £8 “ 00.000,7 ‘Me, < etasooDk ees aN 00,000, é2f 0 0otaurT BawG gatiate2 © 5 : 00.007 | ‘26108 ebr aaisink? no emuiootvt 9 , 00.000,28 s _« s80msvbA YHagmod & ty ay al f ; 00,000,é¢ lyoos? yasqmod G.,esagastazevnt ‘ 00.000,2 yw. sl”) OtOMtEDYAT “tedtO. a | _ 00,000,086 G 6 6 S94 Snel fo reed | 00.900,08 - “) 00.0 ee So Se ee ae ; oA dle : e » —-— e ce < a : 4 wa i ibs ., ‘a a Pad a f ¢ 00,000,000 0f 00.000, OgS,£ 00.500.88 LIABILITIES 143 Books Accounts Receivable . $ 7,000.00 Basie Payable « « « we 130,000.00 Accrued Accounts . . » « 10,000.00 $ 147,060.00 Da@carGompatiy >>, 000:.cowmos, $1, 500.00ess 45,000.00 Bonds Is sued e eo e e 6 e e e ee 1,@00, 000.CO0 Caniaaic Stock: Iesuednries.A erceh.e (hs +» by 100 , 000,00 62 ,292,000.00 Prevare a consolidated balance sheet 164 23aTTIITEALl 00.000,% ¢ . @fdeviessH esavoosA elook 00,000, 081 * « « « @ Sidayed alf{id 00.000,75f | 90.000,01 *“ © « «+ €@%toooA bowitooA 00.000, é4 pis ” * ry ° 3 * * s . YyNsegmop A SoC OO.000,00Qf <6 \2 7a es! « 8° 6 ee heyeal shrrod 00,000, 00f,.f£ . * «6 + « « .« Beowesk tigese Latiaed Ses . 8a Pek odce as teede sonsisd 5etsdtloenos s etacetd S6L PROBLEM NO. 145. (N.Y. C.P.A, Examination) Company © was incorporated in May, 1910, to acquire the stock of companies A anc B. Gompany C's capital stock is divided into preferred, 32,500,000: common, $1,500.0003;a11 the stock is out- standing anc fully paid; it has been issued (a) for stock to the stockholcers of companies A and B, (b) $20,000 of perferred for The stockholders of A and B received preferred stock for the intrinsic, undepreciated book value of the assets, as reflected by the following balance sheets of their companies at June 30, 1910, anc $300,000 of common stock Givisible cqually to companies A and B. orgenization expenses (c)-for cash. Plant land,..... & Building and equipment,.... Machinery and transportation equinments,... Investment in LONG ga ccseeess Investment in bonds ,Co. By«« Investment in BVOGHS pe ecerae Goods in vro- GOSS) sods ks ease Finishec zgoocs, Materials and eon es. cae ORG ba were ae hae Accounts re- ceivable,..... Bemand notes, COe. Bae tia 5.0 eo Accrued ARGO ESL , «s 0 5:0 Between sity organization expenses paid in eash by Company C, $5,000; occured: an ) A 90,0003 254,000 21,000 60,000 200,000 45,000 69,000 58,000 17,420 51,000 5,000 1,800 B 195,000 318,000 17,000 150,000 $1,100, 82051, 245,756 A B Capital stock outstanding: Common,......% 700,00081,000,000 Preterred jw. esx akOO 200g 6% bonds,1915 J & J,and interest ac- CPUC as 20 40 92,700 Accounts pay- ADLG, wae 00d Silt tober eS taeteint ett baa Bisqay wk awk aon : Hae ee Be 1 » - | “ A 7 f ‘ . : ; ‘ LA ai a» V5 enh) ae ee ee Ta. G@ 125 The manufacturing operations of the period show: Company A - labor, $10,000; overhead expense, $8,000; materials consumed, 29 886; inventory or goods in process, &A6, 600, of finished goods, $50, 740; selling expenses paid $1,600; administration expenses, 42500; sales, a72, 500; collections of open accounts, 386, 400. Company B = labor, $3,600; overhead, $2,350; materials, 55,2103 inventory of goods in process, $40,500, of finished goods $46,380; sales, $98, 000; collection of open accounts, $109,150; admini- stration expenses, $3,000.75; selling expenses, oe 040, No materials were purchased during the period and the current expenses were vaid as soon as the invoices were audited. Company A declarec a ¢ivicend of $100,000 and Company B a dividend of 25,000 ri 3 * Prepare the consolidated balance sheet of companies A and B and €, at July 31, 1910, to be submitted to the directors of Company C, and so arranged as to show them the exact detail of the properties that they control. Ref. 34-4, 164 | «= A Yeaqmod :worie botteg, edt 20 enotssrogo 3 ae domvemos efetiotan ;G00,.8@ ,seneqxe & Rea Fs eden Serfaint? to 008 , B82 on ‘ewolfol es etew re, = ee a — a wy ’ ' , LIABILITIES 147 Capital stock (1,000 shares of 100 par value each) $100,000 NOCSS POVADLC, coed eto teen dest ee tert benrisennvceverer 5,000 ACCOUNTS PAVADLE, sevacccsscsusebucmmetesescedescene ‘ 7,500 BOCTUCO TAXES, eee ec ees ee shaved eee eUOw sees ces nni owe 8,500 SUE DLUS . 6 sess 8S wie eke eee als ole whe Ae) ee oe ee 91 «SS «er 54,500 TOCAL, gecccassscrerecesereresrese G15, 500 BALANCE SHEET - X. ¥. Z. COMPANY ASSETS Seat, MAA ee aes LEGA NGG sees ease ee kavewe G 18,000 RECOUNTS TECCL VALS, «een imnwne series mie tn ag tO MEE He 8 8 65,000 Inventories: PECL, Ree Ce Natale te a ete wy nnin oh cn ieee aoe aye # wb eee te MOP 350,000 ME CETIAL Li) PPOOSSS, cisareisiewececee res daety oes o ele 45,000 TES Cy OP OCAEO Gio ndetctevscesontiereib iene cis as Daa es « Oe 72,000 ied: o Leaner pea So6 hae ERLGED WEEE 0 DEERE F OOS ° —— ee LIABILITIES Capital stock (1,000 shares of ($3100 par value each). $100,000 DOCOS POVOULO se tse es eh debe cect ecétevecvawereebee ene 5,000 ASCOWIGS COVA LE Mocca Maco ding pee SAAS ls 6 eae eee 67,000 MUP AUR se eee rW Sb bee k ra ewssaess ore ree res ore eee 60,000 OCR ie Chaise 6 hk ENO 0 Oe WHERE Hits $230,000 All of the castings in the stock of the A. B. C. Company were obtained from the D. E. F. Company and 50% of the inventory of finished parts was obtained from the X. Y. Z. Company. Of the finished product and material in »rocess, 25% represents castings and finished parts secured from the two suhsicdiary companies, diviced into 10% castings and 15% finished parts. All raw material usec by these companies was purchased from outsiders. Settlements among the companies are made by check. Prepare a consolicated balance sheet of the three companies and also a statement showing the amount of the invested capital. Assume all necessary information not included in above, Ref, 49-5 cag pat rae a oe > 1 VoL ) | 000 0068 liad sufoy asc 0OL§ te Saieite 00 Be: 7 WS"t »emo5tesvo got? Secatome sew esinsgmos seeds yd heew f£ selmeqnon serfs edd to teode canned g detest saat sfatiqes hetsevat eft to tavoma of% amtrforte tate 8 bye ot Das ; bs sans 04 + 0. o/s NISC IOP ae Me 900,088 os vee rons¥ou dee dws Wena ; : - a i : etov yaramod .0 ef .A oft to deote ant ni egattens ent to [fa. to yrot¢aevnt oft to 02. aft 10 ors aak BIOSESIGOT esinsonoo ft | | esrrsTeata Veo TEST LOECOPEREETSERCE TT Tey 4 Tt eee weeeererreerene =v Coren en mah aes. ke 7. ae re a PAAHSE OO Rei hae ee eM@eneezpreheeoe See eerteeeveuee oo teesdreseceeesseerseensenee LOGO? aks oe WHAIMI °.3 x oX * TSTHe ZoMAIAg | ergeag 1" | ; a} aah had ic oly al nds be 9 ny ne asp etrvooosd | _ :eeltodneval z soo seveveenesbesesesesvecnghShT6dam WOH a, a - Foes eer eeeeeresvensenneg 8e0nong of [etrstaM - Bet Et ee ee Sesatees, oa : eeereee#ee £ eee 8 & © ‘) * Cesc rae e beeen eens Cece e ee eLOFOR | CRE TIMI Gadd «(a (089 euLav teq oorg to netede 000, £) woose foatge | ; POPES ee ee ee ee see efdsysa a ; ee euer eee — SATOH eee Reser ewer nee eesseese nee TLOOYAG eleseueh 2 2 scorns eeedeesy eds se hs tee ya *** er eee eae tas a ie aoe ‘His yargmod .7 .2 .7 oft mort bonktasdo -« svasqeod .S .Y .X odd mort Seristdo exw edtaq hboretnt? «— rs. R38 ,ccosote mt Lstredam bas touhorc eyes. 4 a yistoredse owt sd? mort bewurode as 9 Horle tart os oan retiag boctebrtt: ROL Sue eanitess otmt iboats : ; -fosdo yd sbem ots asiaegniog ont ‘err (eta tt aa CLA eevods at S5ebulont Jon nobseerso" at re : ile ome eA om a | ae AGENCTES 148 PROBLEM NO. 147. (N.Y. G.P.A. Examination) A. B., a commission merchant, doing business on 5% basis, hands you the following abstract of his ledger, showing his trens- actions for the year; furnish A. B.'s capital account, showing his original investment, a balance sheet and a detailed cash account, a LeM ean S64 olny cae kate eee Eee EOE S Bhs O74 ok or Rw 2 $22,500.00 $30,000.00 pk es ee ag Sie, as le eee 1,050.00 700,00 Claims and allowances on settled accounts ONLY psec bet et esa senescence wecesserees 300.00 750.00 EXPOMSO Ves an Ge aves Eee EAS eR RM A SE etc a eh as 450.00 Customers’ AGCOUNnTS «case scanveeeasscercere 90,000.00 . 22,500,00 CrOGEtere “A wesounee ys ia is ove seeds ce eevee 2B, 875200 °° 19,925.00 CASS 6 nan ek bee ee WES eee ee bee be te ee ed 29,500.00 20,475.00 DRSCOUNGCH SOC Ty CWS atk WON ea OWE he Deco wees 200.00 Ref. 28-5 e PROBLEM NO. 148, (N.Y. C.P,A. Examination) A & B, commission merchants, suspect their cashier of eme bezzlement. From the following data determine whether or not the their suspicions are well founded, and produce a balance sheet and profit and loss statement to prove or disprove the suspicion: #eepwee#e#tewenee7eweteteereeesn @ $42,400.00 Cash receipts, customers,.sssceeecesscesae $42,000.00 eee dee Pree 2 ee 2 ee 2 ee ee ee ee oe 4,240.00 2,480.00 SOLOS) Peeves URS sbehe nee wea sexe es Pity pis< we mh os eh eww ewe es ree Er ay eee 2,120.00 1,240.00 DOCKOCHAP AOS hs OP Ve mea eR Rae ea ERE SS 212.00 124.00 CUSTOM “HOUSE Ghar GOs pies ewsv isda ts wenn ia 90.00 45.00 Interest (account sales at 6%),..e.cseeeas 248.00 Commies {on 2162 ich Sales) ieee ee ade 1,240.00 Dee SALVORSS gop cask es Pe eee ee awa aee 2,000.00 DOEGMONTErY UGOVEANGES Cie i ieee Sree eee we as 20,000.00 12,000.00 Acceptances against shipments,....seresees 12,000.00 20,000.00 © Analysis of account sales ledger debits: duty, $875; freight $1,560; dock charges, $70; custom house charges, $40. Ref. 57.2. 164 eT Le Gay ee ee ee ee r Bas OAT OMEDA yes USL 0M MEIAORT areas ‘ iv ) sf sag | (moltsntmexd .A.9.9 Mp rt: .etead NB mo eeonteud gatob inacdotom coleekmnod & ~emat? att anitwode ,toghel eld te tosxteda aniwode ,tavooos Lasiqas a’. .A detest ,rasy one tess befteteh « bua geste somalad a ,toomteovat fan f ¥ tgtto eid — FaMMOODH 00,000 , 082 00.008 , 388 son pb eseeees ecndan@s tee OMmmmEgee ees eslst. 00,007 00.080, f Sealvicaha ee mpnaaR TIRE He PEE | stauooos belstiee no seonawol{s bre emtel[d 00.06% 0,004 ser ddabesacecddducs COMMER IO EMEC Oe 60.068 irre e rN Ce de 60,008.85 00.000,06 ete ene ncesset saeene 4qneauomur TeromotenD mo.ase,.ef 90.87¢,62:°" » sella ece+ a <4 mata Ore GS a a ee 8 ene 4,000 OP eee feel Ce age teas tea cas gst aces 4 500 CeCe see a gece = se 6 ace 9 5 885 ee mee ee ak ° Investments in unimproved real estate Lop pote 3g ply tte eel ere PS Pbk OER Pee eres ek 30,708 $62,392 13,818.00 31,220.00 250.00 6,237.84 360.00 3,294,16 $62,392.00 Furnish a statement showing River's financial relations and status, with brief comments as the accountant. Ref, 44-1, 164 oat far 20 MaISOnt (rot tanimaxd AcTeDd sVell) 5 dobriw .atmuo0oos ete atimdve |,t1938 atases {sot «revit trod LA bas cotianimexs yo. ,eeofo oF yhseet bas Soteul 5s yifut 9 ta Sie : etihus ’ arek fo AaaMaoOsS ~OMATAG IALHT BSE. e3G co ccle sida alles «Gls Sites die staeinients amen acs .f ee eee a du bats dies 4 ceneude OgmremEEE 00, 3¢8,f Pe ee Ee cect Jedubjonctis BauiooA a 00,3¢c2,.4 oe asdonn ane caeeree ysis got "ot at WS 00.818,é1 | nn ka edn ties REA CEERES. TOR edaellod. 00,088 ,f£¢ ee Da as 20a bad OF 20898 ehe rT 00,028 oo ec SR REEA s 0 hee Cun Veneewa eon £8.92S,.9 . OTT SA a dicke 4 0elhinen Oetnd Ratan: 00, 05€ oto AL Vie ceecenenenetannt cee 000,S ed Rea ha ls dPed «ota eememen OOO, en wee t's de sign nk een ear ‘008 ORE Ce ae eo ttI0 ar, SeS,2 oe iabnwa a tue h nares einen mee sindes {sex bevowgeion at etnomteovel BOT. Of : ous thie a gee ee ee . (Lenoeteg) a tenet et ae LRT Ae 00.982 80g Ses Sa¢ ore - 7 ee eee foe snottalor Istonanlt a'tavin gntwode ¢nemetace 8 detect wtasdnwongr of ea aditonmioo %oivd adiw ,ausiase ofedd 988 . pot is PROBLEM NO. 152. 151 (N.Y. C.P.A. Examination) James Brown is a real estate broker and agent who, among other things, manages properties in consideration of commissions ranging from 35 to 5% on rent collections. For the last two years his books have been kept in haphazard fashion and in violation of the Law of Agency. They are incomplete as to footings and poste ings; no trial balance of the general ledger has been obtained and no recolciliation of bank balances has been established dur- ing the above mentioned period, The Tenants!’ Rent Book is a species of "Dickler" in which the current rent charges are enter- ed in pencil anc inked in when paid; the names of the tenants of properties under lease are also entered in pencil and erased when the tenants move, the néw names being entered in the places thus left vacant. Having accidentually discovered irregularities in the - tenant's book, James Brown has discharged his bookkeeper-cashier and engaged an accountant to conduct an examination of his books, records and accounts, to discover the extent of the shortage,which he fears is considerable, and to install a new system of accounts. After spending considerable time in an attempt to place the books on an accounting basis, the accountant finally obtains the following trial balance of the ledger, as of September 30, 1919, installs a new system which will permit his client to fulfi aL his accounting duty as an agent and renders a preliminary repert accompaniec by a statement showing clearly the financial status of the relations of James Brown to his principals: TRIAL BALANCE eA Ag Caer eras cere ® ,. 000.20 James Brown. capital,. & 4,360.40 mente CASRe g++ ae ewes 100.00 ..COmmMIiSSLONS pasncscccce eog0L0.00 The Augusta Terrace) £15.00 Phoenix, Ins. Company,. 470.00 The Victoria Court,)(a) 805.00 London Ins..Company,.. 450.10 The St Quentin Court ) The Frederic Apart- COUTG assesses a a | 650.00 MON pet 0 6 6 6 am 'sie's ) osu ee The Audubon Court,.) 270.00 The Venetian Court,..)(f) 2,500.00 The Even'g cola 75.00 The. Franklin Castile,.) geo eVO The Morning News,..) 2Os00 | So Vara Fal), ses ses ) 2,050.70 The Union Wall (b) Worl. oe ae F 77550,00) Paper, Company, -- :) ta ye0 The Janitors’ Supplies Compang, ) 45,25 Insurance account (c) 920.10 JAS « Brown Graw'sa, (d)iseeese 16,950.00 Cash shortage (€),.e. 380.00 ‘SROAYTOR seuaseecenee Ley l4G.00 Office GXpensGs, ..ese 0,130.00 Furniture and equip- MONT, sesvetesececs 4,150.75 $40,307.50 $40,307.50 Serer ni Tes er ae ek ist | eh id ” ie - ‘ : Madey oe ° i Be Pamats. ¢ lhe \ ter wy prone: ore tr ettolegiamoos to mols - Bts9y ows ie ee Wn 7* if 1 «4 } nt Po : ey ib Uh 2 Bue " 7 ) SS . PP ee a ; Wyo ee oe esol «OU samen , AY (aott se hasxt Aye i) tah ntserebtenoo at coltiegotg . teal add 0% =teod Sia egnitoot of es otsiqmoont ete yor? hontatdo meod ast isabel Lavene . ots berleltidates 8 el stots ers ; etnanet ont need gar Pree food too 'etasneT sa? 29On THD to semer edt ae rexfortd etetas inet a st aw Leaotsoelioo tae mo Re to potitsiolv mi base aotrciest Stesadgen ar dood ased evar axood ete eft to eonsisd fetid om 72 ie xned to mottelltolooes on : sHotie¢ benottaem eveds ont aot jnov tnetive ent dotdw at "“s A iw : ne ne u pe : pot a a hes Ye ne 4 ee i i 6 Med) a of ae. be Ay _ ab ih :’ th cine Ae 7 pe es i ae etre girted zomen wom ert eovom etauanet sit nodw fant? tustesrooos eft .elead gattawvoons a& md exlood io es _tegbel oft to sonsisd Letat antwolfot tfo eld dimteq [flv cotrw meteye von s ellLaternt troqet yranintie g se etebaet baa taone ma en you6 gatdawooos {etoneank? act yireels psalwone Inemeys etasoav ttef eset gotsnoge toITA- te a yc betasqmoscon to eanottsfer ont to @ ciabtieedachs (otienta | veeveseoagnhaso YIIOT (sont1sT stengvA off 8)(,t v0 ainotolV sat (3500 sitneud 22. off (av deed eum cae Seee 7: (.,3%wod aodubss oft (doteane!S g*aovd ont {+ <2wet gninrom oT - {Lev moianu oft Coes g¥rtaqnod , 19q64 fegetiast oT ( .Mitsqmod estiqqne (9) tavooos sonsivenl — mwowd rae ee? cea’ web © Sowa) | onaitode dead poems eb ees CRMOgKe goftt0 eqivupe Ses emiiowt d) 153, Notations by the accountant: {a) Remittances on account of collection of October rents,vaid in advance on signing lease, not as yet credited to principals. Settlements to be made on the 29th of every month . (pb) Balances represent payments from March to June 1919, for advertising, decorating and supplies, for the account of managed aaa Paid bills cannot be found; no cde- tail available; itemized receipted bills asked for by letter; no answer at September 30, 1919. (c) Premiums on fire insurance placed by agent for account of suncry clients not J haley Premiums will be paid to agent if risk is accept ec and he will deduct commissions of from 5 % to 15% from habe Vansbe with companies. (d) Probably contains charges which might property be capital- ized under caption Furniture and Fixtures if positive in- formation were available, (e) Entries made in cash book by accountant, for rent col- lections apocaring in monthly statements to principals but not appearing in cash book or in duplicate of bank deposits obtained from banks. (f} According to the terms of his employment the agent must remit on the fifth day in every month. Prepare the preliminary report and the statement submitted by the account to James Brown, as at September 30, 1919. Ref, 50«c, 164 Rkida: etaoy secossO To anolsgoelloo ke desta mes: ee Bad 2DSt0 gay sa Jon eared al a4 seal eons? “yipve ‘to dz@S edt no ebam ad of adeeneissen ey ieee A a we ‘aot g@i@i sant of dotam meal idoontint’ daaa ales: ‘Boe to no drusooos ors 102 ,ceiiqque Bm Log ibbtrired S eoagebeey 4 ai ests «8h om phavot od tomass alfid brad .estdreqotg beasnar ii ve Byer. yd nor potas elli¢d betqkesea bos tmed £ yolde{ieva {fet | cs ereLl ,OS ba gee Th sowans on pwottel ielUh * "co ¢nyooos Tol tneg6 wt DOS: 1g) ae ati? 10 » mutant 0) oe iy ot Sisaq = fflye amyimett | i) oa tor sank yrsave oe eroteatmmos goubebh [ftw ed Bes Sotqeoos et welt ai 30902). : ~cokmaqnos Adiw tromaltses mott Ral of x & mor a nh A. -fattqss ed yireqota ely. ben dogeiw aegisio antsdroo 2 vigator (5) ant evidteog Tk eeusxt4t Soe eumtion notéqae soors ,eltalievs etew aokd bdentod foo $a9t tot _snsdnyooos yo stood daso at e5rat eobrsnl oe ie efaqitoaiag ot atnemetase vidinom nit gmkwasegs ec ot Need to ots Shay ae at so food desas ar an rgiwseeqqse ton 3 rs er anh i | mined mort bontstdo adte fer whe ; tesm geoge ont saompoLame hap to emtet ond ot BrtbroooA mo ai itaom pteve at ysb ATT et mo basal Mateos a petitmdve tnometete odd ans txoqox visabmb for ont eat eu Off 08 tedmedqe2 ts ea .wowt ror eomst ot Sarat A eo deog! bie van al be Fai) ees F [wa ve a | ae re) lie, pet ee ty pt A Gh A bs t ; ; y oh aol wa FIDUCIARY ACCOUNTING 155 PROBLEM NO. 153 (N.Y. C.P.A. Examination) John Roe cies, bequeathing his entire property, after pay- ment of all debts and funeral expenses, to the following beneficiaries, viz, 1/5 to John Roe jr., 1/5 to George Roe, 1/5 to William Roe, 3/10 to Mary Roe and 1/10 to Frank Doe. Tae inventory filed by his executors was as follows: stocks and bonds $100,000, bonds and mortgages $150,000, furniture and wearing apparel $1,500, cash in bank, $1,000. There are two executors and their transactions are as follows: Cash receipts: stocks and bonds sold $83,525.50, bonds and mortgages paid in $116,422.73, furniture and wearing apparel sold $1,247.28, dividends collected on stocks and bonds $45,422.50, interest collected on bonds and mortgages $62,527.87, interest received on deposits in bank $1,083.48, real estate sold $25,000, rents collected $18,000. Cash disbursements: funeral expenses $750, expenses of pro- bating will $5,0000, general legal services $10,000, rent of safe in safe deposit company $450, publishing citations $35.75, care of cemetery lot $400, repairs to real estate appurtenances $5,724.68, premium on executors' bond $1,250, stetionery, postage, etc. $125.38, accountant's services $2,000, debts of deceased $12,472.41, taxes $20,672.48, assessments for improvements to real estate $471.83, insurance $250, John Roe jr., account of legacy $55,000, George Roe, account of legacy $62,500, William Roe, account of legacy $55,500, Mary Roe, account of legacy $77,500, Frank Doe, account of legacy $24,000. he inventory at the date on which they wish to account is as follows: stocks and bonds $25,000, bonds and mortgages $32,000, cash in bank 420,126.83. Required, to make up the summary statement of the executors’ accounts, separating princival and income, and showing the balance due each legatee and the amount of the executors’ commissions. Ref. 5-4 164 (xoitvensmex® .A.T.9. a G) “8G tetris titeqote eritae mic guidtseuped 29 eof sicko | on kwollot anit of ,a9ameqxe Ietenul bas ad 2 tis to inom 90H entoed oF E\L «et of aofot oF ONS 0 iv ,eefist itensc. soon mesliiW of ©. °. .900 Amervt of OL\L Saw O08 yrslt of oL\S | ; ra ont | adoote :avolfot es saw atotuoexs aid yd betzt yt wevnk ot Bi | ,O0L3 ebmod brs bus e1vttoiw?t .000,08L@ segegdrom bus abmod <0 -000,1f¢ ,amed at caso 4 es ets anotforanstd thedt bas erotuoexe ows 91s etenT abnod ,08.8€S8, 588 Bloe ednod bac exoota :atgqieoet das :ewollot farsceqs aniztsew bae otuttatwt .6¢.SSa,dL1¢ ai bieq monet bas . Botied bas exoote mo betosifoo abmebivib ,88.V3S,1) bloa . 4%8.9S8,Sa% esgantrom brs shaod mo betosilos teetedat ,0@.«SSb,¢. | - loa states Iset .32.830,1% wnad wi adtezogebh mo bevieoet teorstat | | 000,81% betosiion atmez ,000,eS¢ -otg to @oancsaxe ,O@V) eeaneqxe Iatenut :etnemeatudelb daso Sts to Inet g900 .Of, @eoivrea fsgel letenes 0000 .8¢ iliw | issd to szao ,é0.8d3 .t% feraq¢s anitsew ‘hae anoisstio satderidug ,0@a¢ yasqmoo siaogeh etse ak on .99.)89,a4 eeonsnetiwqqs efatee Isdt of etiscet ,00b% tol yretemso heessoeh to etdeb ,000,S¢é aeoivise e'tnatnyooos 86.08 of atnomevotems tot etmempacags .8S.S°8,0SG sexed 4LdsSVa.Sl to davooos .. th eof melol 088% eonstuant .66.19ag esstee Isot msitiiW ,00a,8d% vosjel to tayoons .@0f eyroeD ,000,c6% yosgel yosast Yo tayooos ,90f ytall .008,6é$ yosgel to tmyoo0s , 90h «000,888 yosgel to tnwooes ,90d amex ,00e, TN re .ats ,exsteoy .ytemoktete ,0@8,18 baod 'stotuoexs a. «88.0814 at tnycoos of deaiw vert doldw no oteb end? 28 viogaevai ost . ,000,S52 segnnttom bas abnod ,000,é89 esimod bne @loose ‘s:awollot es i a | .08.985,0S8 umed af deso ‘arotusexe eft to taometats yranmma elt qu otam of ,betiupel sonsisd sit aniwode Sas ,emoong bas Lectoniig guidstsqsa .etmuoo0B .ancteaimnos ‘atotuesxs sat to tavoms edt bas setagel dose oud bed tet bot 7 Ni PROBLEM NO. 154 ci ul Ss (N.Y. C.P.A. Examinetion) A trust estate, the funds remaining for division amounting tc $225,000, is to be divided as of January 1, 1900. The benefici- aries were to share in the whole estate as follows: A two fifths, B one tenth, C two fifths and D one tenth. A was paid December 31, 1898, $10,000 and January 30, 1899, $5,000. C was paid December 51, 1897, $15,000. B and D were each paid January 30, 1898, $10,000. Prepare in correct form a statement showing the division of the remaining funds calculating interest at 5%. Ref. 7-3 PROBIEM NO. 155 (W.¥. C.P.A. Examination) The will of William Christy »ovovided for a division of his estate into three equal parts, of which one vart was to be paid in cash to John Christy and one vart to James Christy, and one part was to be held in trust for the benefit of Thomas Christy, who was to receive the income therefrom. January 1, 1901, the executors had $100,000 cash in bank, revresenting the amount realized froin the bulk of the testator's estate. The executors paid to John and James Christy $30,000 each, and Lent $20,000 on a real estate mortgage at 6% interest. Pre- pare necessary ledger accounts for the books of the executors. Ref. 10-3 164 eer: | | ner ott 2 | (note so tm ae y . “gr itevoms go tezvih sot note ramet ‘pba? 6. skoitanod gHT .O0CL .« f yxsunet to as bedivt _ yacttit ows A ae as eteieo Leet yee xedmoved bing saw A .citaed emo as bisq aaw 0 +000.89 «@@dt ,0G ¥e fs gOS ~isunet hbisq dose eTew a bas 2 ' dt anbroda tnoemetsia & 10% set de ak ots ae 38 segtatme sii a Si ane comet eee Ott } uereomt (ao f8 arcs ra bee er yes ae Same eid to aaekn s tot bohivoce. vita tial used iriw — “thee ont bise ed of ast TIaq Smo fo key To .edtse iaup9. eet. osnt want Bio has ,ytaiztsd semst oF tuse ono Os xdakxaio nrfot of reso nr “te tut asmoi? to titened eat sod Faurt “nt biol ad of sew tzag A add evisoat oft esw ow a ‘ort ,f0CL .f vrawrat smorrete at emoaet. se ”tanoms one sxigneoatest gained at. eso g00, C019 bed atodso ha : sai ,atsias a! otataod, and te aliud 90h wort seat a i) ,fose 000.047 vis brad. eomet bes eto. od Bisa etoduoexe ect a : -s1% .teoretat RO 28 eysar tom gtsates {set 5 me “000 ,0S¢ tn feel Sra a> -atotupexa arid ‘Lo Blood. eal ‘il at nuooos abt row 8 i oF * j A , ie a! Na | i ~ f ne { ee 4 i f ; 7 fh Di ' 1 5 1 ; 7 " F wh | me 6 | ‘nat | les MRS i P?) 5 er A Wil | ee oe Ws i MO oe eee i I i yy. i: Ty i . r 7 y A 7 c Y 2. aye k P| iis, a de re ‘i | 4: ; " bo rs) | fey? SiS _, oe joa pit ih o ea ii (Aoi es we : hake os ibe! , ead i v ; rae: BL j y % = ai se nth : ' rend 5 1%! a. ae ot a ™ } pars Mg er Ad.’ nu th v ‘ ic i ; ‘ Fh ‘af , vietigst i 1 "he ti 1 P PROBLEM NO. 156— 155 (N.Y. C.P.A. Examination) By the will of Henry Falmer, deceased, specific bequests were made to three of his children, viz: William $100,000, Mary $75,000, and Emma $75,000. A sum of $20,000 was bequeathed to charitable institutions and his eldest son, Henry, was named as residuary legatee. In accordance with the tems of the will ali real estate was sold, the amount realized being $75,000. The inventory filed by John Jacobs, executor, was as follows: bonds and stocks $87,500, bonds secured by mortgages $135,000, furniture and other household effects $2,750, cash in bank $1,237.60. On an accounting the executor's books showed disbursements as follows: undertaker's bill and other funeral expenses $675; probate of will, legal expenses, publishing citations, etc. $14,278.75; debts of testator $10,875.25; stationery, postage, etc. $118.75; improvements on real estate $750.50; repairs on real estate $4,860.75; taxes and insurance $17,505; care of cemetery lot $350; services of accountant $1,800; cost of executor's bond $1,400. Receipts were as follows: sale of bonds and stocks $86,327; bonds and mortgages paid $98,915; sale of furniture etc. $2,285.75; interest on bonds and mortgages $61,270.50; interest on deposits with trust companies $1,275.45; rents $17,250; dividends on bonds and stocks $37,918.50. The inventory at the date of accounting showed bonds and stocks $15,755, bonds and mortgages $30,375, and cash in accordance with the foregoing transactions, including satisfaction of the specific bequests of the will. Prepare, with due distinction as to principal and income, 4 summary statement of the executor's account, showing the amount of the executor's commission and the amount due the residuary legatee. Ref. 13-4 164 uae pax om mateiRT (noiterioss®’.A.T.9 ataguped sit tooge \p9a8so9b stemisd ytaoH | (000, 00L£8 meiisiv :siv ,fotbiide ein To hentssupesd ssw 000,.0SG to mwa A .000,8%@ . ba bomen acw ,YineH .toe taehle eid bas Lot ade! ey 7 Iiliw edt to emret ont At oF soasbroo0s mr % ‘ed? .000,8T4 gnited besiiset tavoma edt bien ebrod tawolfot es saw ,todwoene ,edoost nfo ¥ ig SHOVEL @tutierivt ,000,d61¢ aegeatiom yd batuoes abmod . oe bas. f -08.VES,1¢ uned ai Meso ,0ET.Se etostte Btodaawoa See: bas ¥ atnensatude Lb Seswode alood a rogvooxe add gaivi evade asanesqxe Istenut wedto bas [lid @"9 o39 .enolsesto quidet iiue ,seaneqxe el ,iLiw to ets 292 steog vtantoiteta ;@%.898,0L% xotatee? to etdeb Rb owids | | no ariaqer ;0¢.080@ e¥etes Iset ao aigemevotgas ;89.611% .ofe to erss ,@0@,. "18 eomerwani Sae esxst ;81.088,6¢ ststae isot to tees 7,008,1% Puetedoooe to gsotytee ;06S$ tol yretemes abnod to sfse sawoilor as stew ataqtesel 008, 18 baod e'totusexs to ofse 7a@f@,802 bisq eagsadiom bas abmod ;TSE,833 exoota brs. 6 ges Ton has ebrod mo feexotnt ;é°.08S,.S8 ote otus socet ;Gh.aTS, 13 ae Lasgaros teitd dtiv atiteogss ae tastetal ,0¢.09 Tart -O@.8F0, '6@ axsota ane abmod mo abaedivis 7063 TL | bas eSaod bower gq itwo998 to sf#sb ent ts ytotaevat ie ie + gh i oe fol he 7 aT See ohcae oon bee One emig edt at desd 00.085 .{(rovofqme era movi totstast edt ;. Pe egagsrom devi ") @0.000,0L e..44. | nt *es e¢erkh ee ® g0.000,f «..,8igtosd To 0.00! Tien eee {etemut toi 158@ ,reve¢rebay ,«toined tell biaq Sad tals 6TSs A to fereqcs grtetuom tot €8L8 .09 & efdstenod SEC Te nye oe er noanegxe tento bas Legel tot Sisq cele sH .metotico ons | se os aew dtim@ afot .aSL6 .iftw edt to guitsdotq ed of faetnedsiomt a ae, 4 Pe a RAE: rome =ha 8) hab Wf } a noe ay { ; ot ay ~ er ot ‘ % : vas mn Plate Si totes Ber .OW METaOAT eee ent aatued .000,68 bisqay tad beseloeb abnebivid SAS Vole ne ariwode Sfos stew .ote ,ebmed ,aioota YrhANs Go. aininos bios asw efsise Ise .000,01§ to exuisy boatetqas artsyoos teesstat bas ebwebivio ,ataet ed? bas erotusexs off .000,0°4 of hedawoms dieed to eth of Fmoup: So ougel bas fiiw to etedetq tet bisq mo ftarfeininbs add an itd yrasmron , 008% aninrvom ,0€TG@ asanogxe isrenut 0CLG atetiol "008,i% etis frefo ,000,88¢ amislo bus esdeb me 008.2 atiaisievhbs ,000¢ stetee ao xat Isnceteq 008,83 aeet Leanvoo occe gorei yank ettt ,00C% egates fest gniiios to aganeexe Sus ainamasoaes ,COad aexet taeupeedve ,0OS¢ diseb $8 Sout00s aoxst asonevhs oats 7000,0@ voasnel Isiosce 008,18 -oto etisqet O0SG 7 atsuts bas 000,88% emoont most .000,08@ Latiqse mort asetsgel of e .000, 0088 qu toe to tayvooos m& tebaet of atetyoexs ont to stoqiuq ot a Pa ti bateavet sved yer? .etsb tnesotc eins Ja peter ig oe tisdd hasd no .2t6 abaod ,edoote wa ;000,08§ segeat1om | e bee 000 ,00f8 boatetaqe sta bfoans {fide bas dtaes e'ioseseaet 38 .000, B14 baad mo deseo at etodds ~eib ,tuvooes to YTanmue & etaqetq Inemetata evods est mort ee so soneisd gniwosde boas emoomt bas Laqtoming oc 6a isla Luga ts ents sub molea iamoa ta tmvows arid 8 moidtuditta, . tot ‘f ; s } setasuoons S-Tf .ten e bot : S . AR whi’! ; 7) mY ee me ah A oe ug j ; o a eee a eS oe es ees oF we PROBLEM NO, 159 a) Nn CO (N.Y. C.P.A. Examination) Fredericka Ward dies leaving one daughter, Doris, and two Sons, Henry and Arthur, all of age, surviving her. Her will directs that arter the discharge of all just claims on her estate there shall be placed in trust for Fredericka Winter, the child of her deceased sister, $50,000, the income of which is to be used for the child's support by the guardian appointed under the trust, and the principal to be paid over to her when She becomes of age. The remainder of the estate is to be divided equally among the testator's three children. The estate consists of cash in a trust company $12,500, vonds and mortgages on real estate $250,000; registered municipal bonds $90,000, household furniture appraised at $20,130, horses and carriages appraised at $3,000, clothing appraised at $2,200, and jewelry appraised at $7,400. One of the aforesaid mortgages, $50,000 @ 5%, is in arrears of interest for one year, and foreclosure proceedings are commenced by the executor with the result that on an immediate Settlement the estate realizes the principal and the interest so in arrears and the trust fund is paid over to the guardian of Fredericka Winter. The February and August semiannual instal- ments of interest at 5% on the two remaining mortgages of $100,000 each and the January and July interest on the registered 4% bonds are ail duly received, and the bonds are forthwith sold for $90,190. The executor then pays $30,000 to Doris, and $10,000 each to Henry and Walter respectively, on account of their in- terests. Doris takes, as a part of her legacy, household furniture $5,000, clothing $900, and all the jewelry at the appraised valuation. Each of the sons take as part of his legacy one of the remaining bonds and mortgages. On the sale of the remaining effects the furniture realizes “15,000, the clothing $1,000, and the horses and carriages $3,200. There is also received from the trust company for interest on deposit, $350. The executor expended for probate $150, funeral 600, monument $1,000, tax on personal estate $350, counsel fees $1,500, fire insurance $42 and sundry claims against the estate $7,201. The allowance for executor's fees was fixed by the will at $2,500. : Prepare a summary accounting showing the cash in hands of executor and the amount payable to each of the heirs. Ref. 19-5 164 ; ate : mi J i ay cy ek \ = " ; ? a SA hp on j ; . se" Bef eas ,om malaoat ‘ . (roitecimsx «Ast. 9 Be | ws Bes .eerod Tatdgush en9 gaivset aeib brew sloivobot® fliw aH .ved geiviviue ,o98 to Lis , twits one —noH ,anoa ged no amisto taut fis to sgtaedoalh ont To us gent atoorih 4d .aosntW sxoireberl tot teu1t mi beosiq ed Lista etedt o7672® ei dois to smoond oct ,000 08g xetate peassveh ted to bird hotatodgs meibravg oft yd srogqua @' Lido edt 10% beau od ov pedw tad of 19v0. bing ed 08 ieqioniiq old pue etauid edt zobav od of ef esate gay to webaiemet 34T 4.938 To sont | -qarbitdo eotdt a'togasesd edt prions ytiseupe bebiv to 008, S12 yarsqmos gaunt 6 ak caso to atekeroo 9¢8089 gat sqiotnum botets fget - 900, 0€8@ etatae Leet no eeRerd rom HAS abnod — agerod ,CS1,08¢ 7s beeistaqs etutinivt bLlonearrod ,000,00% absod 00S,8¢ 2s besiatgge anidtola ,000.5¢ 76 peaistqgs eegsittss das ! ,002,.0e ts bos tata yrtews, bas cagette mi Ok at H 000,086 ,eegsart om bkeastots oft To 9nd i ath agnibesootg exveoloetot bas -ssoy oo tot sastotat to stothecmt na mo tad? Sivest gat co iv sosuooxe sit yd Beonomnos sa faetetnt ome bas faqioniza 9 gesifeot gtatae silt sn omeltsoe +o metbteuwg odd of tevo bieg ai bast taott ent Doe Steet Ts mt ~fetartt fournsgiea tasgwA D206 yisuidel eat vtetniw afobrobett 6,00f@ to egnendtom gsainisaet owt ond ao Ro ss gaotoetii To edited a heroteimat ent mo daotesnt yiut bas -yrsunet ont BAS 4989 ot bloe Ativdtrot ete ebmod off bas paviecst yiub 1.8 eta sabrod 100,05% bus yettod of 000,086 ayeq ass tosuoete oft 402L,008 -ni tiodt to tauoogs mo .Ylevitooqae zetia! bas yineH oF Mose | blossavod ,yosyel text to Jisq & as , sores eit sadeotos att te vaiowet, ont Lie baa .000% gridtolo .000,8% etuciaiwt sth to ¢taq es SAB7 Boe ent. to dost moitssisy beaistqgs — saonsgéiom bio ebnod gainismoet eit to emo yosget | aasilser otutiomwt edt asoo.ts aninisatos git to elise git a0 108,00 esyseirtso base asetod ont Has ,000, f8 anintols. adt .Q00.éL2 no tasratsal Tot YRBqrioS taury edd mort pevigoet coals af grect ferenut .0&f etadotq 107% habneqxe toswooKs oft 08S? gtiaoged | Teanuoo ,0884 edstee Isnoated no xed ,000, £3 toremnuom ,003¢ edt tenis3e amielo ythove bas 284 gonstvant gtit 4008 LO egot yd boxli aeaw g98t eftotuosxe tot sonawolis sat f08,%¢ otatao 3 1008,S¢ ta {fiw oils to abused at dego edt gniwode gaisnuooos yremmue s otsqetl .etied ett to dose of gldsysq tnvoms oct. bas tTolNOOXS @-@fL «toh das : ' dep ' mea apn We PROBLEM NO. 160 159 (N.Y. C.P.A. Examination) A person dies, leaving a will disvosing of a personal es- tate that is valued by the avpraisers at $36,470. All but $209 is disposed of by the executor, who realizes $32,131. This together with $2,187 of income received during the administration of the estate, constitutes the full sum to be eccounted for. The testamentary and funeral expenses amount to $512. Devts of the estate to the amount of $1,500 are presented and Satisfied. Zxpenses of $700, including trustee's commissions, are paid and the sum of $20,000 is divided among the heirs. Prepare in sustomary form a summary of the executor's accounting, end a cash account. Ref. 25-2 PROBLEM NO. 161 (N.Y. C.P.A. Examination) The trustees of an estate of $250,000 make the following investments and collect the income: PURCHASES Feb. 2- 100 shares D.Q. stock, par $100 each, at $109.50. Mar. 5. 106.2. bonds, maturing 1950, $1,000 each, 6% Jan. 1 and July 1, at $1,010 and accrued interest. Apr.10. Bond and mortgage for $5,000, maturing 1912; interest 5% AOS 2 ein Wore Ls Oct. 6. 10 S.P. bonds, maturing 1950, 31,000 each, 6% Jan. 1 and July 1, at $1,020 and accrued interest. : SALES Oct. 5. 100 shares of D.Q. stock par $100 each at $110. The D. &- stock pays quarterly dividends as follows: Bors 1, °1+1/4%; July 1, 1#1/2%::Oct. 1, 2%: "These divi- dends are received resnectively on April 3, July 5, and October 6. The interest on S.2. bonds is received July 2 and the interest on the bond and mortgage for 5 months and 20 days is received on the date due. On April 10 the trustees borrow from the bank °1,100 on collateral note and repay the loan Oct. 10, with interest at 6% per annum. Prepare cash account, principal and income accounts of each security, interest, and dividend account and trial balance as of Oct. 10. Ref. 25~4 164 . m= 3 | ioe ; UL AP, PL se = VE a Ya. ihe URI TON oar «0m: | Wo A eee A ~29 Isnoated 8 To snieocath ifiw ge GO8G tud ILA le BGS ayy) eS A ee ae eee Se ae See. Ce ee 1,025 X- on account of legacy,...... weecr ck re ee piaietaca cp «2, eae DOU C. on account of legacy,....... eee n) Lee Re eee fee 20,000 ty | OOF: SOL .OM MEEEOAS (Kotteniusx® .AsteD ,¥.M) “i oe | + ie tg ; 1 4 of [itqA Soibh ,otst2 A10Y well to aesitio asw ifiw ed? ,atotuoexe tuot gaitniodqs | se@saeuped guiwollel edt gaiwocla ,e Sista9 etitne ont to SL\8 9 ,etede A\l a otiioeqe c ,.o39 .atdeh ,seaneqxe Later fes1sq s Sn& 000,088 To SP TGogA HRAD -otsla req 6118 9 bloa Aoote Isitteubal to aeteda 008 i sTsovetnt bewtoos bas L119 £ yin% bloa abnod epertiom tarit da Airy ; -(2aelatiow gonsied) 008.8f$ betoelloo atawoooA *SOCL «tl Nell botelseb ioote Iaittevbal mo Saebivib [000 toleqg hevtoos OObG doidw to .00&,f8 aeons lad aned ao taaretal iy 7 Mise a'qotetass of | ehetoolfloo yviub te pe mo o@is das abnod mo teotetal disen of toluq besrons 066,5° dotsw to ,000, 32% Setoslioa staeh | | | stotstacs to | sit ta -X yd asist ovew etoetts bus sindiniyt blodeevod aft et ; molitsulsy beetargqs — ST TEUYAL Wes 000 , 23 * ** ees THe eee ede ewer es eeerns os ¢BORNOIKS datenu’d esc "eee e ee esee eer ssa este npeeeme og Li dW Br iesdorg to agan na Coad Ne een ee eee, 8 Cosette ee eee arenes e BSOLVIOS La Ds istoned Oe S 8S Oe 6 2 ee eh ee Ke ee sevtveweagd LUST t Leogs5 ) 8a to taeA 60a ON ek We Oe 6 6 2's 8 vol ytetemeo to eta) ) y eet tte reerrseenenssererecu recuse hos Metodusexs mo muimext as. feae , 4 ee ee 6 eee we he eee oeeee +* es ,979 ,9yetaog 1Vtenoitet2 f' @88 .3L ee ee ar ee +V OO beer ese wear ee eee e eOORRODSH to atded ~- | €S0,.1 tie + « ete oe he ee i ee ee 2 {> ye ; 000,84 - a-e * * "aes Oe OW Fh ek ww alee eee 659 ‘to frigopos {1c a “Gee hearst tava Gn eee a ++ vosgol Yo tav0908 Noa 7 a! i ‘ia i ‘on PP 7 ; ; 4 a i : , 3 ; » M fy I Ng eh le ie ars a Fae re ee 4: hull om De L161 The inventory on December 31, 1909, the date on which the executors wish to render an accounting. is as follows: 5% mortgage, $40,000. Five 5% first mortgage bonds of A. Railway Company. Interest on X's advances amounts to 3350 and on C's advences 8575. ; . Prepare (a) a summary statement separating principal end s \ * . Py ° income, (bd) a statement showing amounts due beneficiaries, (c statement showing the commission due executors. a Ref. 31-6 164 PROBLEM NO. 163 162 (N.Y. C.P.A. Examination) Robert J. Green died on November 14, 1910, leaving four children, Artnur, Jane, Frederick and John. The estate consists of the following property: cash in the bank $100,000; books and household furniture $5,500; jewelry appraised at $3,500; 1,000 Success Mining Co's shares at $50 each; 50 New York Central 1920-5's bonds at $1,000 each, interest payable January and July; sundry debts to the estate $7,500; bond and mortgage on James Whitman's real estate $15,000, 5% interest payable annually on December G1; Leasehold »roperty that has 10 years to run with an annual rental of $3,500 and average yearly expenses for repairs, taxes etc. $1,500, sublet to Charles Whinney for 2 fixed rental of $7,000; at termination of lease landlord is to pay us $5,000 for all improvements. (Calculate the value of leasé on the basis of the following data: 10 years' annua ty of $1 at 4% gives 8.11 years! purchase; present value of $1. due in 0 years O4% i8. »675564 -« On opening the will the following bequests are found: the pooks and househould furniture are donated to Mrs. S. Jordan, 4 niece of the testator; to Paul Smith, a friend, $5,000; the palance of the property is to be equally distributed among the children. Four friends are designated by the will to act as executors; Paul Finley, John Smith, A.S. Neff and J.H. Jones. The funeral expenses amount to $110; expenses. of probating the will, executors' bond etc. $175; stationery and printing $75, inheritance tax 81,200. : The executors collect the debdtors' accounts, the interest on the New York Central bonds on January 1 and July 1, 1911 and on the bond and mortgage December 31, 1910, sell the jewelry for $3,000, receive yearly dividend check on the Success Mining stock $2,500 declared December 1, 1910, sell the lease for $20,000, the bonds at 102 and the shares at 59, advance to Arthur Green 510,000 on account of legacy and hand over the household furniture and books to Mrs. Jordan. Prepare (a) summary statement separating principal and in- come, (bv) statement showi ng amounts due beneficiaries, (c) state- ment showing commission due the executors. (No schedules required). 164 fol -O% MGTGORL: i. . (motssn inex .A.d.9 Ba we 7 ea S) 1 quot gniveet ,OLCL .sf tedawsvol mo beth a 9% v4 * tredos ateiance etsatag efT .ndot bas dogtehets. ,onst .mwast Ars evood ;000,001¢ xAnsd edt mi deso :ytt q gubwoitor ant to 000,.f :008@,.66 ts bealerqqs yifewet (008, Sic [sttne) 2t0Y woll 0@ jdose 08 t@ eetsde e*oD iwlut bos yrounet sidsyeq teotedat ,slose 000,f¢ ¢8 abmod a eomst. mo enestton bas brod ,008,.°§ esstae sav oF ah Mg ‘mo yLisuans sfdeysq tastetat Ré ,000,01¢ etstee Iset a'n. 4 atiw aur of arsey Of een tart ytrocot¢e dLodeasel {16 tedueosd tot esansgxs yitsey exeteve bas 008,5¢ to Iatnet Ieuans ns B tot yeonin’ eelrecdd of teldve ,008,Ig .ots sexs? ,etisget — ot at brofbasl easel to mottenimtet te (000,%% to Leitner bexit 10 sulsy ent etelveted) .atmemevotgms Ife tot 000.8% av ysq viivons ‘ersey OL istsh gaiwolfot et to siasd odd mo easel 9ub Io to evlav tnsastgq jeasdorwq ‘etsey 1.8. rigs | Ro ts to | | 30603. af RS ersey OL at sit :bavot sts atesuped gagwolfol adt ILiw edt gnineqo nO S ,wabiot .0 .etl ot betsmob ots etutiniwt bluondeayod Sas edtood edt ;000.8$ ,bneitt & .méim® fuel oF ;10¢eteet edt to eosin sit nooms botuditste vyifeupe ed ot af yStecotq end To sonsisd eS tos of Litw ent yd Tee oy ets soxeitt twol snetbiino -eonot .H.t Sus tte .2.A , time acicol .yeinif ivs{ ,etosyooxe anitacoig to seaneqxs :0£f6% of tavome aeensgxe Istenut oT gnitoaicrg bos yrenottadea j8°L3 .ote dnod ‘exotuoexe ,iiiw ont. 003,14 xat sonstiztednt .évg taexetni oft .atauvooos ‘etotdsh adt toslios etotucexs enT hos [fel .«f ylut bow £ vrsunst mo abrod {srtmed waro¥ well saf no tot ytlewe, edt ifee ,OLGL .I& tedmaced egeyetom bus Saod on? mo Riinilt easooue ercit no doors bnobivib yitsey ev leoet 000.53 tot easel eft Ifee .OL@L .f tedmsoed betalosbh 00t,S%y adoota of gonsev5s .@@ ta cortede ont bae SOL ts sbhaod ef ,000,08¢ add tovo baad Bas yoonel to tngos98 mo 000,0L° ngetd Tus tA bas oO BROKZRAGE ACCOUNTING 16 PROBLEM NO. 167 (N.Y. C.; P.A. Examination) The followine is the summary of a trial balance taken from the books of Messrs. Broad, Street & Company (stock brokers) Dec. 31, 1902: ane “Trom cus Tomevepen ge ese eee ee ent es $5,250,000 we “G0 -CUR COTA Pe mee ere te ic ways eee unees $ 125,000 ot eee Clase 'y seine eka 75,000 Toans si. “red Wanete ds tra ees ek es eric 4,750,000 “Borrowed and loaned ie ee yey SNe Rael 55, 000 LT VOR UIT re eS ek os 6 se teak ce ne He a 290,000 Furniture and fixtures,.:... ny hk aN ass 1,800 PUCETCO Ry «eee wea ee ee ee ee a eae Sere 16,700 COM Oi ge se se eR oe ee Pewee eh oe se 08 ; 95,300 Boye Le Pa ae ie ee a ee rye eee 17,200 Bia STOR fe oa REE. of SOREL ee Or ae ° 325,000 PPC fs. rae Goa bis ck eek he ae ey 267,000 $5,634,000 $5,634,000 An analysis of the borrowed and loaned account showed stocks borrowed $185,000, and stocks loaned $240,000. The firm owed - commission bills amounting to $750, and the interest accrued on loans amounted to $1,520. The market value of the securities (not including stocks borrowed) calculated at closing prices Dec. 31, 1902, was ‘6,200,000, of which #5 1700 ,000 was pledged to secure loans, $65,000 was in transfer, $243,000 was loaned to other brokers, the remaining $192,000 being on hand. Prepare pro forma balance sheet with profit and loss account, dividing profits or losses equally among the partners. Ref. 14-4 164 | ) a VS oO eo oe ee 7 - ae mite, _ rn abhi hi ad ad ; eT eae f eh) ein wy ‘ 1 mont neiet soneisd Ista s to ‘recuse (asexoid xoote } yeneqanod & taotte « aoe acr. * 000, ,.068.46% s : * ane fe aeswee coo, ¢' Y sdocseeeeane? ** 900 ,O&T 4 od ca aiiebagann ate 94 PRA eas Me O00 ,3e + tayooes bensol bas poworr0h ; 00 .0e8S | gaenee poate ae eee ea Vee ae! atnontasval a . ey ; see gaan dies ss 0) 59 GP aemmee 53 9 rus imi ; ay oot .al Pe eh Tada es eS ee van” | Lake des p MORN AERIS ee ro bk eh ieee OOS, TL Se Rabe oe CAS een ere ) Pee hn ery ’ f 0 al f ae ee | paord * * ; Sates ive ne or ; he ie OCO ,.62G oo) SR ae Ae TTT Tats co : Shae: | , ~~ N50 Tas : te a MS Ri laces ania en adi Wee a -U- n aca ee 000s 629 3 wae autoota bowers InwooIs be Kewo mrit eat 000 ,O9se be ro bSutoos Taotetal eit SMB + ton) asid¢rrues 98 to ou lev toxvtem oclT Le .99d Bedit? giieofo #8 pagelsotao (bewostod avloota gttbutont atvose of bogbelq es 000, 00° ,6¢ do isw To .000 ,00S,30. saw .Soet sgito ot bensol @sw O00, E286 ,tetaacsts ni eaw 000 aac , aaeol a .basd no griod G00 ,Sei@ gninismet ous ,eredomd = neol bts bewotto¢ edt to ateyisns aA maol aioots Die 000.8314 bewortod | oaes of gn itnvons alftd motesimmod — \ae 098,15 of Setavoue ansoiwl 9 | ~touooos asol bas $ttota ritiw toerle gore Lad borrol ott ereqott t} ae ua aes (eT ontisg edt gnomes Yi iaspe gexeol ro etitotd aaibitvib- | Be wee — 4 ean) | a Y ) b | dol a ee ale hs ; ’ ‘ais } re er ‘na x wae ‘ale © REE maha ee. i ma eae PO Rew TAR aR! Rc PROBLEM NO. 168 166 (N.¥. C.P.A. Bxamination) A, B and © form a copdrtnership to engage in the business of buying and selling stocks on commission. A is a special martner and B and C are active vartners. A and C each contribute $100,000 cash capital, and B who owns a seat on the stock xchange valued at $75,000 turned in, contributed $25,060, additional capital. A is to receive interest on his capital at 6% and 1/6 of the net orofits. B and C are each to receive 5/12 of the net profits. At the end of the first year the condition of the business is as follows: Capital (subject to profits and withdrawal) as originally invested: New York city bonds, 4%, purchased at par for eee EN ree POET et Sey ove igs fiw 2 db ov «lk oie ale 600s ve Seen e's Soph, U00 Stock in office safe purchased for account of CU COIR Tigi ow eee ee ee ee 6 ne EIST R ae Seta Ton yi aie e we wk ae. © x L171, , 000 Customers! accounts, iong No. of shares bought 35,000 Mariet pri oe + FS st Ae DP Ore + EER 8 Se 8 OTEK Se 8 HH BIG CED 2 oe FS ee A BTM 2 6 ae 508, 000 Cash margin Dar aps S 256 pee 6 8 6 ee OU Ase ee RO TE wee eC He OT + OD » 000 Balance FP SF Fe OC Ce Se eek ee ee Oe ee Te eS RS &2 3 150 3 000 Customers' accounts, short No. of shares sold 6,500 Market price,..+..+.... cht cee AA AAG ESE es eo 266,000 Cash margin par 10%, oe BWP ET BBR RSS DO Ke ee Fe vweaenreevevas 655 000 MT HERG ROR Oe de Ke SAN ses 0 eS Fase 0 | GOO, 000 Bank loans on city bonds, par value, $3,000,000, less 5% margin. Bank loans on stocks, market value, ‘:624,000, less 20% margin. otocks borrowed and loaned to account for full complement of securities. Commission earned $88,700; excess of interest earned over interest paid, exclusive of interest on A's canital, $41,300. Office salaries 37,800; office expense, rent etc. 840,000. Partners' drawings A (315,000; B $30,000; C $30,000. Prepare a statement showing the cash on hand, also a profit and loss account and a briance sheet. Ref. 22-3. 164 et udittaoo dose D bs A eat Bef oH ears a a dl A ae i - tid a ih (ao been mae hha Ee oe * oe the tre. | hs tie ia vale env nt enagns, of ieee mrot 0 bus 4 .A - {stooce 8 ef ; rot we | cid guiysd to 7 .noteatmmoes me ,aroniis¢ evitos re ag, " Yoota edt no t898 8) aerwo ost son 100 .900 686 botud ftsT109 “et bomtud | fad tao aid no teetetal evisses of ai A -tatiqse ee pbs avisgot of dose 91s > bos & ~atitow 9 to O\i Bi be ical .at How am ets 50 Se ex seu cue to bao ott ee “yawoLLot 26 al 4) ae ¢ LLen ty ito ok: (teuacbst te bas és ek ot $ sostdus) ed ' ava abnod yt is ray wet yot tS8a 73 Heasnotwwyg - ed a seeee ,iny0008 9ortto Lig, . 600,005,886 44 3% 212 4 . eae late * mee sre ie aoity sousaM . ‘ yy i a a ‘ a : 006,836 ‘get 6 ooh oa al OP ae een deer ry O00 » ae ee ee le hs — . 7) ae ] fh ( Pe Te an } - " Mi cnientaieaer temeetilte urssenneng Aline Ii 7 ‘ Fa it. sa! ee ee HOC tof - oe ¢iee @*'* *** 000.08) 5 | Re sect 60005 000,80 .auter 19¢- ‘eamod ito £0 ansol. nat, | 7. nos eeelt 000,230" «eu lev todesm Bto0Fe £10 ansok y ae ie . ages $a0908 of penanol Essie sicueie en ~asitituoss to tromatomoo [fw to: 7 pents9 motaaimmod oO « Os .ofo Inot ,sRMoCe : @ ;000,8L7 A “agniwen® tar ond tet i) ; ay 060,085 9 1000 05 ard ga iwola —— as oxeqott | ie .toode spasied 5 Sas Sau0a9s pant one i tavo bontee tastes 9 HagOKe 5007. 88% .008 ibe istiqso 8'A mo teorotat Pe sv fay foxe .Fi8¢ teorstal ‘6 o agitie 1000.% aa tueise goltto a titer = oats nad no dass pees PROBLEM NO. 169 167 (N.Y. C.P.A. Examination) Broad, Beaver & Co., Cotton Oil Brokers (members of P.E.C, Ass'n), trace in cotton oil options for their own account. The following transactions appear on their books for to- day's trading: PURCHASES FROM CLEARING HOUSE BROKERS Per 100 lb. Carpenter, Baczot & Co... 400 bbl., Jan. delivery, price,... $7.02 MGtEen, RYEM Se Cos wes © ov 600 Mar. v gear g © do. Pree SOO!) = Jun. # ¥ Teed William Commission Pee a a * cabs " " 6.90 v -100 ji tt a 5.02 SOLD TO CLEARING HOUSE BROKERS Carpenter, Bagot & Co... 400 bbl - , dan. delivery, price,... ‘7.03 Moyvean, Ryan & Cow,«+..-- 800 Mar. ¥ Teer do. Sale elee « Too * Jun. i (res illiam Commission Co.,. 100 " oul. . : 6-95 CLEARING HOUSE CLOSING PRICES AGI 6 mnth nce 8 a)4 e+ « 9 woe pele a= Oe MAP Clyne <\0 eM a! oe te mee has ‘Siw soee ee Fie a ie a se gn exe oe ee PULY 4 +o o5s = SK ale > baie 8-woetaete 6.93 NOTH--Hach barrel is considered as containing 400 lb. of oil. Show transaction in all the books anc a profit and loss account, taxing the inventory at closing prices. Ref. 28-4 164 . Ci | | | cS q 4 - ; ‘ ; f ; tt TOL —s-« CBL. .OM MTAOMT | : | ak: (notsscinsxi Py: + Ye) oo »0.8.0 to eredane } arolotd [£0 mosttod 4.05 & tevsed , haoid «tvooos nwo ticdt tot enoitqo Lhe mottoo ak ‘pbert e(o'sead “ot trot aiveona tteodt mo sseqas | aaaivooment getveste , " “anion a'ysb BARMOAG RAUVOK OHTAAGLO MOTE CREAHDAUY i a dt OOL t9 i wo» 9S +++ 99 btg wwrevilab ante «rid © Ds 00 2 3. Sones tetaegqred is.° " ota ae, a ee S cays ,MeQtoM ‘ os. " " mu " OOS \. e-awia oes «od 0¢.3 " " Pa Fy 8 ® COB: 6 t omee ogtodo bas 000, art wards tw oF powo lls , aan oqel emse satsco bas 000.080 vrenbuid bw at sidahatec asw aoob. ieenee sie oan a puseuees 19¢ Sa od ad asw {os iqso ‘arondas; O° gegtasal Vl inupe boradea od of stow esanol To antietd avanone fen igito noqu bebtoost as 0.5 OV ‘got .gntxub enoitosanstt mitosar oT retev tetsold emt ‘Ar 10t ,#959 000. £o on ee 189 stewed 000, to asesnotvt Sef 8 Yrsunst ga suse :000 5006 ie * an asc) gorede 000,06 wre L atomotevo tot axlgote to a9 esrb ut 7 vey 4 000,080«8% tot (dose OOLG suisy ae 1sq) so76ra 000,08 ot 10 218 aremodes tot gxoota. to aelse ua 000 .GS0 eh tot (dose 0ole outev - e +000, 20a pee" .atamosens ‘moxt dass ak bovieost nigreM alae trode (2TEGtO# BLO aot sieso re povisoo: aigrol con sferetsilos no sumed moti ben tatdo sta v enpoL gtttwotlot. oT ‘ Off ,f8 tedssoed of Lint al brag saetotat 3000 408 TS ret! 10 AG ae mo ft sodnsost of List mt Saee shisasivuct lec honad axoos ae .000.8% merits a .000, 0083 . omotaso To Jro9 08 20% is liad ets igqmos ot eh) ae axtoote {in aT od baneod is segaaae tort fe nt hovieost 000. tLe anoi@ekisiod to be ehatoalios ai¥ 0c0,ONS so talw to 000,885. § asonewolin 'etontisq to sv ieuiox9) ee 8 ‘$8 5 teagan San tame 008,.S° cdokut to...(fettgs The partners had withdrawn as follows: Smith $16,500, Walker $18,750, Jones $18,500. The market value of the bonds was ~L,004,500. The Stock xchange seat was finally sold to Walker for $85,000, the profit therefrom reverting to the firm. Prepare statements prior to dissolution, showing (a) cash receipts and disbursements, and balance in bank, (b) income and expencitures, (c) condition at time of dissolution, (d) respective partners' capital accounts, Ref.. 46-2 PROBLEM NO. 171 iNuY «Cari. Examination) The following is a trial balance of a firm of stockbrokers Going business uncer the name of Henderson & Greene? Ale eth ds kek oe cee + on pka0 ass, $10,500,000 Gti pit MOT Bs | her : ; vil LY . a 4 T SLOT: ok PS Stan 8 Pen cl i 000,0°%%: citisereserwess «biowornned ifood2’ gi co Ba A 000 ,O8s oe aa tose seeeeees DanBoL giogta lis ; ' a « oe. £ ny eamtode tecto ee enotaeinmod = - _ Oh0 ,f veeeee @GB0L MO boevto08 Jaoresal ah - 000,00%,ff ,ensol otupee ot be pape . 000 , O&L : tt ewes ew ewe e g COT 7:1 td & . up. ‘a 600,38 1arsilo1d tedto of Sensel axoose abe ee J bers abo bar INSOLVENCY ACCOUNTS 170 STATEMENT OF AFFAIRS PROBLEM 0.172 (N.Y. C.P.A. Examination) Jones & Robinson,mmerchants, are unable to meet their obliga- tions. From their books and the testimony of the insolvent debtors the following statement of their condition is ascertained: Cash on nancies pod kk eh EO Ge Olt can OR oa ae feare 67500. 00 Debtors: 31,000 good: &600 doubtful, but estimated to produce’ dco: Be Re A oiaias gate ice cae Teng er 5 Ea 2,600.00 rroperty, estimated to Sahai ¥o 000 ee ek Ee PA th ste, Fi tee QOOs OO Bills receivable, good, . , APE Perret ake gO a , 4,250.00 Other securities: $3, 000 “pledges “with partially secured creditors; remainder held by the fully secured ee ee laa esis Bia Few Eee Pew ake ba we lee» is oS eae « #£8,000.00. er ree ae 1h gna. 7 «veils hele etek + 5 pk eee ee ch Me ms ale 9,000.00 PO ee is OCP AWE SS 6 bo eigs ee hace we SS a Pee ee” yd ee Cee = Pye ee ee ae BURT Y LOBBGE 6s eae ak). Fe ORE. <) Go ae ee ae eyeetaee £5,000. Trade expenses). v+....+. eT eRy eure Peay + en caw es aE 7,400.00 Creditors unsecured,....... iMacia eM elds ted ie the kaa a ok aoe 25,000.00 CE EGw uC mMNPOPULOWLY BECUTCE, 66. cic wee hem te Mee nee ees 23, 900. 09 UTeee LOtmuetiely gactred, OF. Ol erm és meee ae te reece ne 17,000.00 Preferential claims: wages, salaries and taxes,........ 700.00 DUE pe COLO PUD 5 + iblas, won xe ale PR eo lO ete lad ou0 ee e ® © 2 wee nee! ROE OOO. 00 ROOLMSON HOMPUTAL ys . arcs so 0b ie ee de oh fetes TreveryyPeus eee _16,050.00 Prepare a statement of affairs, showing the liabilities and the asset:' with respect to their reelization and hh agiaaroly also a deficiency account, showing such of the above stated particulars as would account for the deficiency shown by the cGukauens of affairs. Ref. 1-1 164 * 7 at " 7 jl aor. ~ BEMUOODA roumsot ame ak Se yy BAIATIA %O THES , nae SOL .O% MEIEONT re) 8 ae * one . "y ee if 7 (noi tsa imsxmt wAsS.9 .Y.1) TS ‘oma esaiido tient teem of oldsnu ots ednedo cu: aoenidon 2 esnot etosdeb tnevioant odt to yromtteat odd bas sdood tiedd mort ron eat -benistteces ef moitibaog sfedt to thometeta geaiwoll BH ;008.8 B ...cewds a ce nee SR ers no died | ot betamites sud a 008% ‘boos 000, £0 setrotded 00.003, PeCrererier, | eee 000, £6 30082 99ND OTC CO-000,8L sencvscnceesseues@@0g@@ Soubo: DOTHOES ce bros thong Pk) Aen re ee ,eexsd bas ag¢kisica ,eensw sanists is 19t9%9" O00. 000, OL seme cone up 5 4m «cHUMMMMIEN Luk «cvs ¢0/teri nn 00. O60. eo setae n eee oneae ee eur aes eee vee .o++-eietiqes seen idon eee sonar = bas sektvilidsitl eA? aatwods partstis Yo tnenotata & “ onaqet coals smoigsbiupi£ bas noisssits @% tiads of toaqeot dit Teses ant sislvottis¢e Setete eveds edt ta sous gatwoda ,favoo00s yomeroited & Zo ¢ronetsasea aft yd aworda Yond Loita ect tol Jauogo8 cecietia 2" fel toll ool | | PROBLEM NO. 173 L71 (N.Y. C.P.A. Examination) ‘The books of A, B, & Co., July 1, 1897, show the following: Cash on hand $176. Accounts receivable, good, $3,000; bad, 3300; doubtful, $5,000 (expected to realize $3,800). Creditors, unsecured, $15,000; partially secured, $6,500 (estimated value of security $3,600); fully secured, $10,000 (estimated value of security $13,000). Rent of premises (taken for the year ending December 31, 1897) unpaid for June and July, $600. Salary of bookkeeper, due, $100. Liabilities on bills discounted $3,000. Stock of merchandise on hand $3,800 (estimated to realize $3,000). There is also @ further liability, on a contract which A, B and Co. cannot complete, estimated at $2,500. Prepare a statement of affairs, showing the financial condi- tion of the firm. Ref. 4eh PROBLEM NO. 174 (wv, C,P.A.., Bxeanination) John Fleming & Co. make an assignment for the benefit of creditors August 21, 1896. The books show the following assets . and liabilities at that date: machinery and tools $7,524.61, mer- chandise $6,423.72, supplies $471.08, store and office fixtures $1,524.67, accounts receivable $4,071.29, cash in bank and in office $524.19, wages and salaries $624.71, unpaid taxes $432.12, . Chattel mortgage $7,500, accounts payable $3,471.20, bills payable, $4,424.68. The assignee had an appraisal made as follows: machinery and tools $4,724.19, merchandize $4,819.24, supplies $194.17, store and office fixtures $624.23. Of the accounts receivable $721.18 are considered worthless, The bank claims $500 of the cash belance to meet a bill receivabls to that amount, discounted on the day of assignment. The mort- gage above noted covers the machinery and tools and is dated June 1, 1894; interest at 6% paid to the last due date. There are insurance policies on the contents of the store for $10,000, dated July 1, 1896, one year, at 75 cents. The firm has dis- counted its bills receivable froin time to time, and $2,427.21 (including the $500 note ebove mentioned) is outstanding at the time of the assignment. Required, to meke up the assignee!s inventory and schedules end to show the amount of assets for which he would be obliged to give a bond. Ref. 5-5 164 ~bsd 1000.88 ,booy ,sidsvicoos eimuoosA bos ,@totibsto9 . 008 &% esc liset oF betoeqxs) 000,83 pees to sulsv botemitas ) 008,80 ,de tues pager (000.8 LG “to eulav botemitse) 000 ,OLG ,hotuse® YX ut ' ti ucibus resy ont tot noxes) esaimetg to tren . (00042 > to vreise .00d¢ .yivt bas emul tot blsqaw pee fd. ,000,.26 botnuoserb allid mo aetettide bl -OOL@ ,eub « BOOT (000.6% sxifest of betsmives) 006.6¢ bass no sathusdotem to xoove — 5 6ns & .A sdotidy tostino> & Ao iit ifids il soctiut s coals af gtoadT 7 a 008,82 ts botanitae ,atelqmoo SommBo J etbnoo icionsnit ent gatwore .etketts to tnemetate 8 exeqett * ay -mtit oct to soit ' vere ot we ek a ATL .OH MiIGORS ia (sot tect tiooxd tke 2 ne : to sitened oot tok dnemepiese as e2lem 00 8% grime ti adot. | gteans antwolfot ont wore 2xood af” .O8s L% teupvA stot ibeto «tem .f8.452,°98 ealoos fas yreminosa ‘ete tart ts Bselsilidail brs; | AetuIart 90itto bas stote ,.80.INe¢g satiqgue <2 6582.00 eaivasdo a | a] bre umed at Meso ,0@S.190,4¢ eidavicooet einudoos 9%G0dbS8.L¢ ~8E-SED% aexst Hiscav ,1Y.dS6 seicaies ons gagew .@LedS@2 aoltto | i effid .OS.193,.80 sideysg edavesos ,002,.%8 agsetrom tested. — val .Gd.388,4¢ eoidsyseq ° . bas vronidosm tawolflot @s shih Ise tsteds ms Sac eengziess ofT . ia siota ,TL.s@L4 astiggue ,bS,018, a0 es toasto tem aQ@L-BSV.bO afoot | 4 8S.289$ setutnit eoltto bas_ Pay ~eegolcdrow borebtenos ets SL.189% efdeviecet etmioons eit tO iP ae iJ eldevisset [lid s toa of sonsisd aso edt to 00GG emisto anad off - -ttom off .tnengieas to yao edt mo bednucoats samwoum sods OF n hetss ef bre eloot bas yreninogm oat etavoo begon eveds e263 : a etstl .stab sub tesl aff ot Bisg M8 te teqgetmt Geesl «4 anit nl ,000,01% tot stote ont to etasdnod om mo eelotlog somsiwanl ots . ~eiB act omit eAT .etnoo av ts gtsey emo «OCS igh Glut Setas | a S.°S3.88 bac ,omtst of emtdy motl efdsvioost 64 id ast betmuco 8 ot te gitbostesuo et (Senotsiam ovods atom 00G% ont guibufont}) = migiews eit to omtt e ore y gelubaing dus ytotmovnt eloongkeaa- ady quo exlsat ot bestido sd bivow st dobia tot etesea to savgoms : ae ; f at Yi oeeted t >F PROBLEI! NO. 176 172 (N.Y. C.P.A. Examination) Being reauested by a merchant to prepare a statement for creditors, you find his accounte to be as follows: Real estate 25,000, mortgaged for 310,000, interest overdue $750, interest accrued $125; goods on hand $18,000; fixtures $1,250; merchandise in warehouse $10,000, on which the merchant has borrowed $3,000; accounts receivable deemed good $10,500, doubtful $1,500, known to be bad $2,000; bills receivable (held by bank as collateral for an advence of $5,000) 46,800; cash $2,500. In addition to the above secured claims you find the following: accrued rent $000; taxes $750; wages $1,250. The merchant also owes A $6,000, B $5,500, C $13,500, D $6,850, E $1,800, F $2,650, G $1,225, H $1,400, and there is an unsecured disputed claim of K for $1,300. Submit the statement required. Ref, 6-2 PROBLEM NO. 176 (N.Y. C.P.A. Examination) John Thompson exhibits the following balance sheet of his business, dated June 30, 1900: SRST ws we aa a Peete ae ak se $ 750 Sundry creditors,...-. $ 6,000 GOK COUCH a.ee ks eels S;D0U, Bills payable..ce.ee+« ) FyS00 BLOCK: Ott, Wes eet v0.n 6,500 Bank (overdraft).....- 3,000 PERUres, CBS. pode be aces Leto Balance, .ssssene-> jivnn. eye LO GEL g San ee ae ne owt $18,500 TOTAL. sexe kaaan ss $18,500 On questioning Thompson it was found that he had omitted the following from his balance sheet: $250 owing for rent; $75 owing for taxes; $2,500 borrowed at 5% from his wife three years ago, no payment having been meade on account of either principal or interest; ea draft for $500 accepted by a firi without con- Sideration, falling due in 30 days. His private and household debts amounted to #600. The item entered on his balance sheet as cash included his personal 1.0.U.'s for $600. Of the book debts about $3,500 might be considered bad and the rest good. The stock was good except $1,000 which would not produce more than $100. The fixtures, if sold, would not realize more than $250. The only other assets were-household furniture worth $1,250 and residence valued at $7,500 subzect to a first mortgage for $5,000 at 4%, and also a second mortgage held by his bank aS security for overdraft. Prepare a statement of affairs. 164 CN: og SP Pie. ce Pay “= yrs BD hy 4 < meh aaa ‘ats Ow mIgort (rorten ice x. Pe OS. ane | .Y¥.0) / tot gSaometata 8 otscotg of tuseotem s yd betagupet gnioed — : eststes fIsol tawolfot ec od of ateuooos Sid batt voy «8x0t bat. tesrstat ,O@V2 aubievo tastetaé 4090, 010 tot beasatiom .000,65° ecibasdovrem ,0@S,i eetuixtt 7000.81) basa mo aboog ~ESly. bewi202 5000,8¢ boworsed ssid tnsdotom oft dotdw mo ,000.0 sayorotaw at awort .008,1"% furttducb ,008,0L8 boog. bomeeb ofdevigoet eynv000s isistsfioo ac Aned yd Sten) eldsvisoet alLid (000,.8¢ bad ed of of moitibbs al .002,S% dase 7008.8¢ (000.2) to somsyhs ma) tot . treet bovioes igeiwollot odd Sait poy amisto bervosa svods exit ,000,a° A sewo oafs Jasdovsem em? +088, [) eegew ;0d%% seust 30085 .689,f3 D ,0@a,.SE % ,008.fG X 028.36 € ,002 S16 9 oars | & rot N to misfo betuqelib beiveesnw as ai stodt Das OOD, botiuner tnamassta edt tindyS .008.1¢ etl .OM MMIEORT (noitsn lose nO is a gD aid to teerea sonsind aiwollot ont atidicxs mosqmecT mlot 100CL .0S emul bots ,eesntaud 000 ,.° = A toe etotibsto yrhave ody ¢ Ss, oil uaa woe OOG.T ...-e4-6--eldsyed SILEG. | O07 pisvcensveud oe Ot@en Boea 000,o-\...-s-(Statbreveo) Ane: 00.0 cs ceseseaeDiehone Bo6tc 000.5. ss Bee = rele saa -» gone led Oval ea oboe aaee secatxit 008 .8f%...,... ee eT OOF BLE ss es eereeeeeentstot? 643 betitino Sen ax tant bruvot aew ti noscmon? uninolsa@ais nO aiiwo @°4 itner tot aniwo 08S :toode consiad ein wott aniwollot Logs sissy serdt stiw eid mort RB ts beworted O0G.S$ iaexst tot Isqiontig pertie to tass009 no ebsm need gafvsd Sasaysq of 09 tuouti@ uttt svi botceces 006G tot Tieth s (tastoesai dot bas sfavicq atK .aveh OF +k oub pailisi .noissivsdisa - 0038 of Setnucms etdeb et hebulont daso as toendy sonstad aid do betetae mest ont | .008§ tot @'.U.0.1 Lanoe1eq bas bsd botebiencoe od srigim 000.53 swods etdeb wood ef 10 ton biuow coidy 000.1¢ ¢as0x9 boog asw Asota sat .boog seer exit easifeess tom biluow ,bloe Ti ,astudert eT .00LG med? otom souhotg ewsintut Slodeaved stev eteses tedso vino emf .0CS? nads stom tatit + of ¢oscdva 008,°8 fe boulsv sonobiteet bas OcS,.l% dtiow ated vd bfod exagtrom Saooce s cals bas mb SB 000,8¢ TOI sgsgttom ; etistbdteve tot yYslivosa 6s dasd sikh Gu8 .tsh eristts to dasmetada Ss cisqets 173 ROBLEM NO. 177 (N.Y. C.P.A. Examination) One of the early exveriences of the firm of Gardner & Kes- tin, Certified Public Accountants, was to make an investigation of the books and accounts of Evans, Smart & Byford (which firm hac become involved in business difficulties and was compelled to stop payment) and to prepare from the following data a statement of affairs, accompanied by a deficiency account: Unsecured creditors, A $35,000, B $27,500, C $26,000, D $24,500, BE $17,500, F $15,000 and G $2,000; creditors for rent, Salaries etc. $1,250, of which $750 was preferential: debtors $42,500, of which $37,500 was good, $1,825 doubtful (estimated to produce $625) and $3,125 bad; bills receivable, H $3,000, J.94,250, K oe. 500, i $1,500; land and buildings $25,000, plant and machinery $8,500, stock’'on hand $5,000, furniture and fixtures $1,500, cesh on hand $15,000, sundry profits $37,500, sundry losses $30,000, trading expenses $17,500. Evan's capital account was $5,000, Smart's $3,750, Byford's $3,750; Evan's drawings were $10,000, Smart's $15,000, Byford's $17,500. Show how you would have prepared the statements required had you been employed to do the work. 164 . Nd AS hi Neer a i] a Vi n F ‘ bs -, e “894 8 tombisd to mf eat to emia moitsyttesvai as odau of asw ,atnsinvoooA Oil . grit doicw) brolya 2 trem? ,enevE to etnwoss “ot Bbolloqmos asw Ste aoitivolt? ib eaanttaud mi | | taouotste 6 sf85 gniwolfot odf mort segerg of fn iTns0098 YOR, fotteb 8 Yd Seinsa € ,000.aS¢ 9 ,008, 7S A .O00, ace 4. arte Ds rt ator "rot atot iets :000,S88 DP bus 000,856 FT .00G4' atotdesh :istinetaterg sew 087% Ho inw to ,0eS,1¢. ot betamites) {uttdvob 888.1¢ .So0y assy 0928, VES Boke: : 000,88 H .sidevieos: alfid ibed eS1,.0 Snes {aso 58 “pou 14 tnsfq .000,é8¢ agatbiind bas bast ;00@.i@ d ,008,S2 a 08S.a8 DV getutxit bas siutinw +000 ,€6 Smart ao: Aoose ,008, ag yvioninosm 7 a ytbasa 000 . TES etttorg ythave ,000,c1¢ baed no dase *008. | Snyvcoos Istiqso e'nsvd 008,818 aeeneqxe gnibsat? ,000,089 aseeol Stew aygaiwstb e’asve= ;0aT,é6¢ “a brotys .08°,.€8 a’ txeme 1000.8@ asw 00a, *H atbrotyd .000,é1¢ e'dueme 1800.08 batiupery atnsuetats ait beteqst¢ evad bisow NOY wordt wode -trow ot ob ot bayolgue seed YOY had nat | can \ ane ’ > : t ‘ (ie Ag 4 ay : 7} . ' ® % j . 7 7 a ‘ i : owe ci * P. i. he y ; ; ae? 4 a ff ia : 4 i > D i J ? : j ; i ; : ri > if j ~ Lae 4 ra on et : UJ a 7 1 me ml eee a a ~~ eer 7 - PROBLEM NO. 178 174 (N.Y. C.P.A. Examination) Parker & Riley, being unable to meet their obligations, have mace an assignment. You are asked to prepare a statement of their affairs for presentation at a meeting of their creditors. Some of the creditors are entirely or partially secured, the Security being a part of the assets. It is desired to ascertain the true condition of the assets with reference to realizetion end the extent of the deficiency with respect to liquidation. Prepare also in connection with the statement of affairs a "deficiency account,” explaining the deficiency shown in the statement of affairs. Following is a trial balance of their ledger at the date of the essignment: CaG0 Cte OMe eke MM OMNI, . 6 ices c cere sees oe es & 1,200 Stock and material (invent. from vrior period). 12,000 Reliance Trust Co. stock, 20 sheres at cost,... 2,200 ACCUM Gee TeCCL VALS, secre vesspeces Reve ae pikes setd 10,550 ey eT 0 is ce teele meas

1,700 Horses, trucks and Sernoas ‘(property account), 1,400 SI ee ka an og 5 aS is oe as ee eR A Oe $28,000 a tt MMe ene kh ain vk es eRe bk ne Ae eR ek wea 8 ‘ 7,000 Mortgage payable (on store building and lot),.. 5,000 ier Glee ele eeeioa «6 5 e 6s SS how bee 0 68 ae ere 20,000 Ee ee oe ACS a a ee Cae ee aNat e oa eae Set 36,000 SV a gt I RS, Rak ater gna es Fi ree Te Se: PP ae 1,200 Sree ed ee Ss ate oe eles Bla ec Be a aa dig ois! Sch Dear as oh eh 2 ,OU0 Pie Set Se OI so alee Sas 6 se eh ee le RN W ewe O58 960 Taxes, insurance and build ing cepeirTs,. +s Pak, ad 1,240 Géneral expenses,........ ON, a ee ae a ey See 2,650 Pareer G GhYs CEL Ss iwiese ees Ras bad eek es Seheens's 8,000 Haley's: COpltal ss. sa «5 Oh I ORE TE ee ee) arta ae a 4,000 Withdraws ia, Parker, .saes-¥eenes Pes aie ate whi ote a & O00 WAGhOrewele, Riley; «0's + ds cs ass ee a LEAS = PAY na ar 1,800 The accounts receivable are divided as good, #8, 000, doubt- ful $1,500 (estimated to produce $1,000), worthless $1,050. Notes receivable are eStimated to realize $1,800; the second mortgage is estimated to produce $800; the trust company shares $1,800; the horses, trucks and harness $900; fixtures $1,000; store building and lot $12,500. Of the emount due creditors (accounts pevable) $20,000 is unsecured and $8,000 is secured by the second mortgage and the trust company stock. Tne loans payable are secured by the equity in the store building and lot. The inventory of merchandise om hand, which foots $5, » 000, is expected to realize $3,000. Other liabilities are employees wages $650 and accrued interest on mortgage $125. Ref. 15-3 164 ave (mot darkmexe .A.deD «¥eit) % texisd reek in | to tnemetate 8 staqetq of bewes sts woY «tf yises ms obam oved -210dibete tiedd Yo gridsem & $8 Nolisinesst”d * Y @ifsits xiods ait ,beivoee yilsitisq to Yletgine 97s erotiosers ost to ome mistisoas ot beticsh gi t1 «ate@es ont to Jis¢ Tes ya ftucse ‘gottessiiser of gonetsiet Mdiw eseaes adt to notttbnoo omzt ect .mottabiupit ot Sosqee Atiw yomsrorteb eds to tnetxe sat Sas & etistts to trometsse edd Atiw noisoeanoo at osis ersgetl ent mi aworle yorsioiteh emf gniatsiaxs " jnuooos yonsto lieb” tient to sonsisd Letts s at gmiwolfol .atistis to tnemessive ‘itmommpiess edt to eds89 eit ts tagbel ~anoistsgiido tisdt tosm ot efdsnay gn-ed GOR £2 aces’ ceeveewseewenses,2ned i bas basd no sdead 000.2f£ .(boited tofte mott «tmevat) Ieitesem Sas apeta O08.S ...,4909 $8 eetssla CS ,xoote .0D tauz? sonsileA O22 OL .vseaece ¥eelle eee ME gE Ene be ¢ 6108050000 ee emure 000,5°" “A rouwas vn dacsledlenilead ts 668 » ty avis eg OSEBV LAGOON aes off 000,f «+3 dmovl BOL no (Srooea) sldsvigost sasgstobl OOO, aE ic 4 Vee .(toL bus. gntbliud s1iosa) sfstaq iseh OOT +f EE ee eh haavlcintadcla: 00a, Lf _ (tevesos Ytrecota) eeenred bas etoutsd ,aseitod 000.8S¢ > evade os ceases Sawebescve ves Sldaesg 6laneosk » . 000,7 reer y is Lea be beh @ rida bevschue s0LGG¥S@ GARGG O00 .2 .., (tol bas patbiiud siote mo) sidsysq sgsattoM 000 ,0& es+sadevenn wey Peer ec eee) Cee, ,a9es fotwd 000.98 eee ee eR ere O0s ,i' ac wc 0 0 0 whe Bedi. GE TMMIMEMD Dee 'a tn 0) 'otrplaletalg ein aie ae anne 002,s ees ce ce 0 ab uname 3)! a scand wares ain kale: oae ce necceees seu OMG os ees etQVOOMRD DR Ceetords ORS ~L see's ....,8ttaqe? gaiSciud bas eedstwent ,sexsT 0635,S cieteaeoee abv wacewcovsesnceevs Go@ngane Jatened 000.3 Te Re ee ey 000,2 | ry 0 ee ee Q00,.& pe uee cs cael pe teile caw dese. pTRMERE (LORE oe OOS gL 1 | . » awk is vienna teemge waeee se > YOLLE satowerh dd iW etdyob .000,50 ,«boug @n bebivéb 948 eidavisost atavogos oAT (JBet0% .020,.1¢ aesinsxrow ,(000.L¢ sombotg of bosacitvas) 00@,1g Int Bi esgsario: onoDea andy -008,18 o¢sifget of betamites sis eldavisosi eit (008,ly dotada yasqmos seaurcd oct 0082 soubotq of botsmisee gniblisd stoge :000,.f[é eatutxtt .0C@@ eacmisd bas etours ,seetod rae 00@,SL$% tol bas @t 000,088 (sideveq edayosos) ezotibets 9b Savors sit tO eit bis e3geaitom bnoose aft yd betyoe@ af 000.0% Sus Ostysosau | Xiupe odd yd Sotusea ors eldsysq amsol sit exoota ‘rascnoo seutt . | stol bus gaiSlivud etote sas at hte 5 as ea es ae oe *@i ,000,.2¢ atoot doisw .sasd xe eatbasiotem Yo yrotneval oaT RegsY ‘'eesyolteme str aotsilidert toiitO .000,88 egiiser ot betoeqxe | (Gilg ogsgdiom no testetat bewtoos bins 0€6¢ . 4 ‘ ; ‘a a, ' bol | wis i ee ; : a ap ee a, weet ee ss oe 175 PROBLEM NO. 179 (N.Y. C.P.A. Examination) A firm which began business with $50,000 capital goes into bankruptcy at the expiration of three years. For the first year itS tranSactions showed a profit of $4,000 after $2,500 interest on capital had been charged. The other years showed a loss of 36,000 and $2,000 respectively. The partners had drawn at the vate of $5,000 a year. The condition of the firm at the time of failure was as follows: eee COTE yi aes wisest tle ae cee Whe hae EER RS $37,000 Secured ET tees eyo oils @ 4.3 st es eR Ak 30,000 Ste. esse ee ee cu Rie Pale Oe we hen Ce oe ERY 1,600 Merchandise (estimated to realize $16,000,...... 20,000 Accounts receivable ($2,000 wncollectible),..... 15,000 Real estate (estimated value $19,000),..-......- 15,000 Machinery and plant (estimated to produce UN Ie 6 8 be eee alae ett, May ty Leah al ie tat Be A Nar Ge Gene: Se Se 25,000 yt) eee tS tae wis ee Re AE er en rar > Dee ate 100 Prepare statement of affairs and deficiency account. Ref. 18-3 164 evr OW MataOnt : La if : (tro ten tne xe »A.4,9 | cami ii bepo 000, 08s. 89 by asonieud 8 teey texit ot tol .eis9v nae ‘teotegni 008,38% tests 000 eg to tt ’ Yo esof ® bewode ataey tedto oat Salemi ist | sit 3g marth bad atoasiaq ont fre 0G one & ea 20 ste: emiY odd J orrit et to modhtbnoo oA srsoy @ O ee 20 = rawoilot a8 saw StTuli®t oc ea end 000,788 Setetseeeeseeerereeeaess aes q BEOFEBOTO 9 1yosanU 000 .0& a oe a eee oe ee a ee ee oe ; ass ts sx0od at ni (000, 08g Yine goubotq of. as eew dud 003,f - Pee ee ee reeves eee CoN gd ES a ee en paella ‘xr we ROBE 000,08 wees. 000.018 os hfeox of & snitas) sudhnareaniae eX: 000,e2 Be eresk saison clea 000, 28. of SJMNOOOA A : QOO,CL Miss. +..-., (000,018 eitew rg ioe etatas isof - iyo | soauborg ot firey: tneiq ons 000,é2S ewe #6) 6 wee ee + « +p ia ed edits oe o¥. OOL eta nee eeaan eee a Spee RON hyo stowooog yorsioiteS bas atistie te Sremoteste singer oo ' $61 PROBLEM NO. 180 176 (N.Y. C.P.A. Examination) The Parker Construction Company is unable to meet its obli- gations and is forced into liquidation. At the time the receiver takes charge of its affairs the following trial balance is pre- pared from the company's books: GRO we V2 5. VC ee ees 8 2S te ees Si owgs00 ARO ANC. DULLGL Bem c sets oe ee ek eed oe ee 10,000 Mortgage on land and buildings,..... a eee, ® 8,000 Plant and equipiient, «....%5.> eS des een Bae 20,000 Crecit ors, .a54 248» es AGA GN ee be ee - 59,400 Completed contract account (losses),.......... 18,000 Capital ys Sores. ooge A R e ‘ . §0,000 Uncompleted contract accounts (outlay),....... 30,000 securities acquired in settlements, .....+5...., 15,000 Debtors’ accounts for completed contracts,.... 6,000 Be eh a ce Se = 6,500 Oe eee ee AIT EL os he Ae as Ne Peta tee Ms ee bo Ge ee 2,000 Pronto end soem (Geri ci ene?) ANG Alea aes as 9,400 eee netteme = ee ne —_ $117,400 $117,400 The sureties on the unfinished contracts estimate that a further outlay of $20,000 will be recuired to complete the work and realize the contract price of $40,000, and their offer to take over the materials on hand for $1,500, as part of said cost, is accepted by the receiver. Of the securities acquired $5,000 is pledged to secure $11,000 que creditors, and $10,000 is pledged to secure $9,000 due creditors. The company owes for taxes on reali estate $100 and for salaries and weges of employees #.,200, which sums do not appear on the books. The company has discounted customers' notes for $3,000, of which subsequent advices indicate that $1,000 will be dishonored, and a debtor owing $1,500 on unsecured account has failed and disappeared. It is estimated that the amount realized on land and buildings will be sufficient to satisfy the mortgage only, and that plant and equipment will realize only 6% of the book value. Prepare a statement of affairs and deficiency account. Ref. 19-1 164 avd tevisoet eit smit ort tA | fe ™ to 6 2 91 j “he taxood at mort bars; 002 ry ee Ey oy ey oaths OCO.OL' 6. + 0+ 4 tka sO bays 9 x eee a eee 000.8 @ reer eterenscees @QMtbLiud bas Sasl mo egssttol O00 68... dice torrent seeevecsees So9MGiNDS Das tasi< . - O0n,e4 Peers yy CE UR Hwee ees eeers gees cee bee SOREROEO 000 . Sf « os'eia & Meee .(esaaol) tivcoos tJostiaoo botalquod : : ee ee ee ee ee oe or ce ete) 000,08 000,08 . . ae see (MB LtuG) atmuoo0s tosiinoa betelgmoont OEE) (ven an rosseep Gt ttomeltites af betivpos eslt twoed 000.8 ++++-@Soatinas beteigmoo rot etnuooos ‘arotded 003.3 ey ea TERT CROP eee teen ee teas enee SOBNOTHE - 000 .S jth setteesvessvaces ,@lsitstsm to yrovaeval GOR 8 aie sss, scree e(YOnodotted) eaol bas titorl . OOf Tite OOB,¢ . an sy ate £¢ & tects etemises atoertace bodeinitay add? no seitorya oAT x~row ot 9tsfqmoo ‘ot baziuest ed IL by 000,083 to valtuo tedduut od tetio tio Sus ,000,08% to aoltq toartnoo ont esiiest Sas 13209 Disa To Iiteq ss .008.f§ tot basd no elsiretem edt tevo saad 000,8% Datiupos aett inuese elt TO .tevisset exit ud betqeosos at ef OOO,O1@ bos ,atotibstos ou 000.118 ermege8 of beshelg at TOT aawo yasamoe eT .erotibets sub 000,08 atwo9@ of hesbeiq assvolgme to eegsw bas esitefse tot bas OOIt states isex no aexst Sat vrsqmeo off .alood eft mo aeeqqs tom ob amue doicdy 008.19 treupseadue co tsdw to 000,53 tot seston ‘atemosaus betauooatb tosdeh £ one ,betenocath ed Ifby 000,f¢ fend ot¢so tbat sen ivbs JI .Sstseqqseth sme beliet asd tasosos Sbetmmeans ao 00é. I? gaiwo fitw agnibliud Sos basl mo besifser dnwoms ont Send SeFamitee at bas taslg tsdt bap ,yino sgeacttom ect yisitse of taelottisa ad 7 -sulsv Yood ent to Rd yleo askfeer ilfw taemqiupe Jhvooos woelsitsh bas aristts to insmotata s staqett f-@fL toe. bas PROBLEM NO. 181 Lv? (N.Y. C.P.A. Examination) On June 30 Ward & Parker, merchants, announce their inabili- ty to meet their obligations and make an assignment for the penefit of creditors. 7 Prom an examination of their books, supplemented by other information, their condition appears to be as follows: Liabilities Cedi to Pay alOOGurGd pn HOG. ce eee cAeeeeusbes Beweaess +. .DS1 250 CHCELMONR, VAR OO CUTEST 2k ak a ee + tween eo eee Saeninn s 29,875 CreGieerss Lully Secu Gaps «Fi cake ce ead. weet eee 21,250 Taxes and wages of employes (preferential), ia sen ig ee 875 Assets Cag .O0 Mang p.ne0 es ts anole. « wo Eg Pe aa fe Bibi 5 ole ae w £oF aS 6,875 Ce ee ae ia es oe a ss sig AUR a ue leieee os Se arte ak Whig wilaix ihe e. e 8. 17,500 Bills receivable,...... penis o'er ens ahaa b= on lk ee te ore Greig Tas <4 :s ; 5,012 Warehouse receipts and other securdties,....--eeceseees 55,000 CT PUCUCOLE File eee. Pewee ewe ees Kucele aye ies 2 Spend Losses Profit and loss account, sundry losses,..... ER ER ee 16,575 Trade expenses, current period,.....seeeeecreevees hee 9,250 Personal Weree CAD) CAL ECCOUNT, CF Pere Peis ogee Oh eee ene eas 12,500 Were eherecneal Apawinkes, Dr was eee. s Bad ens eT ae hae sa 11,250 Parker, capitel account, CY .,...--: rr ee ee area ge ue es 20,062 POTHGE DETEORSL OTAWiINGS FOP he aks 6+ veces eae eee es 7 10,500 Accounts receivable show,........ ye ot Oey arte od meine opeoe Bad accounta peisecy.. .< BEG ss BGs biel oes SHE: ie OM. st 1,250 Doubptiul acocunte, to. eka: A Se ee oe bs Sts SLATS OTs 750 BEVGCTEd UkG PIGGUCS FOWL PH Hee eco ee ee eo eae ae 250 |The securities are in the hands of creditors pledges to se- cure payment of their eccounts, viz: dn hands of partly secured creditorS,... cess ereenee cose $ 3,750 In hands of fully secured creditors,....... Bre) ve wae Pe 31,250 The chattels are expected to realizZe,. cee reece sses ome 11,250 Prepare a statement of affairs emd a deficiency account. Ref. 21-3 164 AS Aes A wes | (moitemimex »A, ded Yo) eifident tiedd sonvonnn ,efasdotem «tealzeS & S2eW 0S enut nO gi¢ tot fnommmiess ns slsm Das ecnortegt Le geom oF YF . | BT fo #itensd torte yd botremelqque ,exood tkexdt to nolienimexe Pa Rs -awofloct as ad of eteeqqs noivibmoo TOM 5: igsarrotas | as itifidaht a. VST eee et ee ee Lienstseershesees «ra gD@TUDORGl 9 @06 BOND evs,es ee cuaue + 00600 000 ee e400 Lae yitisq ,erotibero GOB IS cose cvescoeseseas cove vewsarasygbotsoo®, YLIUE 6 sere os G@somnnevew ts baw enne were se ces + ( GIMUOQOS iutsdu One fg eae 6.2 ole ad mw Oo > Gee ee. bie nin eae 10 8 a POR ee ot betosqxd -98 of soubolq stotibeto to abasd acid mi ois ag id bruoe9@ oat | ‘siv ,atavoogs ttent Io Ineaysq evo ONT So Bc vasasese, rat . srotibeto bemuoes yittsq to abasd 0@S,,12 : ils » eet ake .~stotipets betmosa Yilst to ebasd 1 OOS. EL aseawdiurstwmes ...yo8ileet of beteeqxe ots Siedssado sit .tmsooos ysastoiteh s bias atistts to tnemetstea $s etsgetd &«IS toh bat a PROBLEM NO. 182 178 (N.Y. C.P.A. Examination) The Montauk Manufacturing Company becomes insolvent and the receiver appointed to wind up its affairs has a baiance sheet prepared from the books which shows the following values: BALANCE SHEET JULY 2, 1906 - MONTAUK MANUFACTURING COMPANY Assets Liabilities Cred of 0% .i.5 eee S i402). Bille payableistus-o% $30,000 Bills receivable,$ 2,108 Accounts payable,.... 65,460 Accounts receiva- Interest on bonds due VLE yee eee esses 19,740 21,848 Julyur ReOGyaent -s 2,700 Raw materz rial,...-$16,200 Bonds issued for factory Partly manufac- site and building,.-. 90,000 tured goods,.. Bate Taxes, wages, etc. due 2,500 Finished wares,. »900 Consumaple sup- PILES, «ee. ce BAO Shy G00 Factory site and buildings 90,000 MaAchiNeryijuns «x<- « $50,008 Tools and appli- BIDS Pets ies anys a 7,000 ee) ae iy &,000 Horses and trucks 4,000 Office fixtures, 600 69,600 ‘ ba a ~ "8218, 650 $190,660 Deficiency, losses,.... Te e010 Canital stock, sss sv. 2 100,000 $290,660 $290,660 = eS NC ee ————— The machinery, boats, and horses and trucks are pledged on chattel mortgage to secure creditors to the amount of $45,000, $6,000 and $3,000 respectively. The mortagees of the machinery agree to purchase it for $30,000 and the other mortgagees agree to take over the chattels in full satisfaction, which offers are believed to exceed what the securities would realize on forced sale. It is estimated that raw materials, partly made, and finished wares can be sold for $29,000, while the consumable supplies are not in marketable quantities, that the tools and appliances will bring $4,000 and the office furniture $500. The bills receivable are all good but 31,640 of book debts are uncollectable. Cus- tomers' notes to the amount of $7,000 have been discounted and the maker of one of said notes for A540 nes failed. Prepare a statement of affairs end a deficiency account. Ref. 22-5 164 Ay VO ate fe Ro» ts ree ave S8f OM oa MELGORE, his (110 £3.80 brie x ane sit bas taeviceni wmo50d YASGmOw. feede someisd & asi acketts até :gauisv gniwollol et swoda- YIATMOO OMIAUTOATUTEAM ATOM - - 9086 «8 Yau raat - eseifilidail. ; ay PO0C0E Bac e sees ,oideyeg 0 itee | Soba oe 984.09 soe ey DLIBYSG papers a BOL.S $.ok eub ebmod no taotedmt | 4; Sev tes tagoooR OG Se A0eL «8 3 yiut Sean GENS 1 wore Ppt oe +s riot Bt to? bouaat abnod. 008 014. oo LBE198 a Pedal 000,08 «+ «of thbiiud ons efi2e By ~-O8 TUNSH vised o0¢ .S eub .006 «891 “.8Ve ,sarete ai 003,24 + +48Q0038 bets os Ca HOO .Gd » (OSTA ootetnit i Ae he y.., ee ee sidamuentod — Rees. as 008) even eee SOLEG | 000. oe ant ai tue pas ette yrotost ‘ OOO ,.Uae «+++. VroninosM -ltiqqs Oas eae 000,7 viniaiy « 96 ty CRIES iy OC0.3 eee 000, afourt bas 898to. SRR BEN | ee 50%) aot aR et pine 094, 0018 | - "983. 8ist- C00,00L,......-Mootea Ladies pReser +++. 29a protests oe eh aes ; 633,0 aR) an? e 1g : f a . naar ‘ 228,00 38 | , y oe no Bexdelq ots exXoutt bas-asatod Ons eatfsod cig abie gales eof 1,900,234 to trvoms on oF axvotisaroe etuoes o¢f sacgd Ton fotteto. nig. | plow gooqest 000.6% bas. men not gi sascotug ot gauze Weemsconm ers To a99ggst TON aflstindo edt xovo ealet of 29138 agegeation tailto ott Das po NTO jariw bssoxs of Seveited sts atetic doisw .nojtoatertsa Ifvt at .9isa beotot mo esilser Sluow aeitiwoes sit pscisiantt bas ,sbem yitxrs¢ ,eleitetan wet ssa betamitas— gt #2 oho va iv 818 asiiqque afcsauumcroo art elise .000.05¢ 10? Sloe: ed 280 69TSw lity esonsifcas bas eloot sav Tadd .a6it idneuy gidatedism ai tom i elidavisost allid oxT 008 etuwtinmwi sobiic addy 5ms 000.49 aatsd- — gaud .eldssoeticony ets atcab sLood to 099.16 tud boo3 fis tS art Sas botmyooath neod ever ig (to dayvoms ont aed on — Oe alist dss ‘ot aston Skea ° eno To tea / - te woos cone tskt toh 5 BAS sciite To Ja cushed a & orscetl dd a PROBLEM NO. 183 (N.Y. C.P.A. Examination) The Nassau Engineering Company fails and a receiver is appointed on March 1, 1907, who on taking charge finds the company's liabilities and assets to be as follows: creditors un- secured $59,100, partly secured $16,500, fully secured $13,500. The company owns real estate $15,000 which is mortgaged for $10,000; machinery and tools, $30,000; materials $3,000 and book debts $9,000, including $2,500 in litigation, on which a loss of 50% is expected; also securities of the value of $22,500 acquired in settlements. of which $7,500 are pledged with partly secured creditors and $14,000 with fully secured creditors. There are engineering contracts in force to the amount of $60,000 on which $45,000 has been expended. Cash in bank $750. The capital stock of the company is $75,000, and the accumulated losses on contracts, bad debts written off and expenses show a deficiency of $48,850. Customers' bills have been discounted to the amount of $4,500 of which $1,500 will be dishonored in consequence of failure of obligor. The machinery and tools are expected to realize only 50% of the book value and the real estate is appraised at $12,000. The cost to complete contracts is estimated at $30,000 by the sureties who offer $2,250 for the stock of materials on hand. Unpaid taxes and assessments amount- ing to $216 are discovered but no entry thereof appears in the company's books. Prepare a statement of affairs and deficiency account in technical form. Ref. 23-3 eve as, {no FRR Aa. D iy lata et tavieost 4s bas alist “seer 3 anit abr st eR tSsno anu etoTtiheto ‘ewoliel 3s ed: of iit , 002 ale : 008,E18 betsoee v r Tot begsst tom ef dot ev 00 500.2 ee bas 900, 5¢ eis tretam 4 6 sotcdw mo cro ita bt kL mi vagy tts to agirituoee 08s8 ; ; 008, S8% to svisv 9 it yitieq tiv Serbelgq ets 008.8% do Lew to -etotifeto betwee qilut at ie 000 000, 08 ‘to truome & ett .0avg ined az desd -bebnomxe aged beteiuawoos ond ans , 000 ,85¢ ei SA srg ge wode aeumsgqxs bas T tro aettinw atded of batawoos th mssd even allid fexemtot2u0 -,088,88¢@ to "ms boron: teih ed ILiw 008 , 14 dotsw to 000s to om ers efoot brs ytori:msm ent szont ies to etul st to gonmen tset ont bas on lév stood and to Roc yimo asilser of bo atositnoo steiqmos oF F809 ei? .000,81% te beetetags ait %& eit tor 0@S,S8 catto oow es itotue git yd COO.CSe % , Bower 19 eistresem % atnsngagaas Ss aoxss & ay yrds on sud betevooalb 91S ei .atood @ eFNNOMS eit mi etse qs tost? ai tnsoopn yore toited hee aristts to jnroametste & S3sc9 -mtod ao PROBLEM NO. 184 180 (N.Y. C.P,A. Examination) Under vressure of financial difficulties the Princetown Contracting Company has applied to its creditors for extension of credit. The creditors' committee has engaged accountants to examine the books, and appraisers to appraise the physical property of the company. The examiners and appraisers are given, as a basis for their work, the following balance sheet, as prepared by the company's bookkeeper June 30, 1911: DEBITS CREDITS Plant and equipment,..-.$150,000 Capital stock authorized Horse, wagon and har- and owtstanding,-... $100,000 NOG & , a.a schsnenee « Ae ee 3,000 Bond and mortgage pay- Machinery and tools,... 110,000 able, 6% due January Shop and hand tools,... 17,000 Le LOLE) sow ime se stents 85,000 Materials and supplies, 38,000 Notes payable,..-..--- 35,000 Finished GocdG,..- «ese. 5,675 Audited vouchers unpaia 156,000 Uncompleted contracts,. 72,300 Uncompleted contracts, COG aD Aeh has bs iene on 88 48,800 instaliments,..«..«#«3 45,000 Accounts receivable,... 11,150 Dividend #6, payable,. 5,000 Notes receivable,...«.. 15,000 Wages accrued,......-. 2,650 Accrued interest on Interest accruedonbond notes receiveble,..,. 530 and mortgage payable, 425 Stationery and printing 1,220 Interest accrued on Unexpired insurance,... 280 notes payable,.....-. 470 Reserve for plant and plant equipment,.... 6,000 Reserve for machinery ana machine tools,.-. 5,400 Reserve for shop and VEG Khisa ont to Rd cidiw .ff0L ,08 omut te exood ett mo busta Youd as bee eisixetem oft to aoneisd eat .atftotq 10% Sebhs Jnuome : Atiow sts 25005 Soneinkt off .900,08% sowbotqg Sivow eeilgqquva =| gniteixtq bas yremottatea oat .08S¢ .a.k ,oulev qetoa sleds yino 7 a | *,.058 dtzew eta |. ston bedauor aseooid ni a@tomrxtnoo sat tadd wosle yasqmos ode 10 axood ed? nie , .000,06f8 goubotq.,betelqmoo medw ,itiw 5 te atistts to tnemetasa (8) stacet¢ ,8tosi eveds sat mort | lee yifsoisgol tnaycoos [fiw tals davooos yorsio fied (a) LOL ,0& ona : .etot ideo ati yd bas yasqmoo oft yd Bettwonk seseol ent sor yidexrovst amivehianoo ete etotiboro edt tens aokiqmvesa eit tebmy aforrtco> oat Yo mottefqmos eat bane yaaqmes eft to mottuioeeid etd | 6 CU MEUAE he's 5.2 waver eel O00 .80G ,9ONSG TO O00 , f ee a ceesvese- s op @iOated S212 My. OT: ci) |: (Mh ae ori See ios wtrantteg Isioege ,ilewxsil yInok @S2 0S ve hbbw nee IE Iee Es sa ae be istigso .agetd Leumsc TOO, Sf de ea ed ease to. w+ @ Sv eeekes mele 60 ger somst O08@.Si6t 008 .Stis pawn mma Ws - ions poi ee pong ossie hes oe emoifosensy? atestewtd oft to mubasiomen s ak gatwolfot onl asise {000,08 arshbto toerinos stelqmos of :eensdotig ttsey oct ToT to Moods 7000.83 stauooog botoetiooau :000,8018 deso Tol Te9Yy tol . oidsvisoet eiLid 1900,01@ BC81 .1& tedmeoe@ bast mo abocg betoeticn ,alidaviesoet atdsh ftood ;008¢ to aaol & +8 betoeiioo to tnanslétea fut mk RAV bevisoot itacl eomeisd ,003, .000,33¢ omsa to tnwooos mo daso bisq bas ,eeton no cishostosos © brs tao sixi ,a9et {spel sf? .000,01¢ tot aoton iswenet gaivis ot betmuoms teasq moigsboriooss to tnmuocos no bisd ea et ? ae * s ~gi dtiw ,agsqd¢rom iebam ogfs etew etmemysq gaiwolfot eat -3@8! {5 tedmeced of geststat bswtoos a'tssy emo bas ,daoted Bousw .e1id atefo i:eldsysq etnwosos dood bas oldsys¢ ailid ,eexst ot dtaon cog OOL€ to somawolis ddiw .seaneqxe eaeniaud toslvo bas 4tentisq Isioece ot RO ts taotedal s'rsey ono ,etotdisq edt to dose bas R35 5 tsey eno (ase ,ag) {stigs>s auiqiue a'r no teeretai .000,0L8 Ils ai ~ 000.8% to est atestentt silt fereneg edt bas OL\L Yo taeteint as bert temtisq faiosqs edT -eapacl bas esitoracten edt ‘to eubleery edit ni saits bet etentts¢q sori? off of botxevet ststes edt TOSI .f yrsumst nO ,etnuoges moitmbivell bae moitesilset e'setauit (s) etaqetd «tise (o) ,feutt to moitentared ts edstes ont to teecde somefad (d) satnuooos ‘atom eae wie r et ae . j ’ 4 a. i , i ‘ LF ig ' j > & a ~~ i - . 7 v9 * ‘ : Pile’ tice ae PROBLEM NO. 186 183 (N.Y. C.P.A. Examination) X, Y and 2, foundrymen, unable to meet their obligations, suspended payment Jan. 1, 1902, and appointed a trustee to realize and liquidate for the benefit of their creditors. The books showed the following assets and liabilities: ASSETS Leng and Dulldimeeoi ges wk ss ee os Sina chieee een Peta eaass ie. OCC Machinery and toel egan Gans s...» whe aha % & LR NMEA ANAT S 2 oO 4 en 76,000 Supnitune- and Ciachieey. 651... ein » le ele oa eed WSs os 10,000 Wateriel s pndeBepyi tess «bp hies RG..5.4> PME bb wee 6 95,000 Dido TOeVOLIRDLSe i wk A eine een 4 ve ee See a hh eh eK 15,000 Accounts receivable,...... Sy are ae ae a he ee ae beeen) bbs wo Callie ain > «Seema eek oS OA. NG ee SS. PPS BES : 450 TOCEL GSGGtMs sree « Bee cadens: sina & & Awe oo ore $435, 450 LIABILITIES Mortgage on foundry aut Aas Lr yo Be gee allies A ar ie Eye ep pe betes » $100,000 BIMLHOPSVEOL!e ey VR. es Ot dc ee ea ee i et. ie iid hee Accounts wavynebewe? .00919.9%. es a ie ye oe Boe bad ete 105,000 EOWEPCES SOCTUCK GH MOTTAALE, ccc coer e kate da dhe renee 1,250 Taxes accrued (estimated),..... SNA: (OR CR phe a ib a : 835 ef ae) it > ee ee Nipha gintsiy eka she OY a eee eta Ri aate ete de © Magali 955000 re ee ain Ws gal pins Sie Tee 8 ON Oe, 6 $435,450 The trustee's cash receipts and payments during the year were as follows: RECEIPTS Bills receivable (outstanding Jan. 1, 1902),....... vague “OS £8,000 Accounts receivable (outstanding Jan, Ly. LOOE) naccaseser 106,500 RE BAY Vee BT ee eee re Shaitp ereta. eikt aia 5,435 Bills receivable (contracted during year ee ere 13,500 Accounts receivable (contracted during year 1902), aes g) 212,000 Total TeCeipts pvsivs vs we « Pete tek ac re e's os $352,435 PAYMENTS ee ea ia ga as as Webs robin pe weeks sly wih Co Gury cre ap hea §& 25,000 MCU PE OVE OLE res a ee a SS pa oe Oa Oe ae Og te eee 35,000 Interest on mortgage one year at 5%,...... ee eee ea 5,000 SORES TOY tNe YESr 1901] ns eee eee a ensens re ae bie kb we 865 Purchase of materials and Supplies,-+-. sever eseses euaes 98,000 ee See eats Ck Wk die ois ee A aw Eee Oe as OR A Ee 135,000 ROTC LT ME CRO NMED SG 6 vue ca Ce eka Ree ee eRe ee ee aes 45,000 Interest on bills payable to Sep. 30, 1902 at 5%,..... ‘. 2,800 TOUR. PAYVMEN TB) + ss eis has ce ee oe eee Tree ee -_ $346, 665 gas a8f .0u M&IEOAT (noitentmex® .AsT.0 «¥eM) 9 | See on Te raet .emottagiido tisdt toom of sidsny nomytbagot «Si bas YX ot sotayts o botaioggs Bas ,SOCL .f gt oe q bebneqawe eff .etotibaro uted? to titemed sd tot otebinp bra asiisot ~ -poidilideli bas eteaes sabvollot esit bowords giood - 000 ,2S18 ..+. ee rrr ae bast ee ee ee ee eae n coed bela ses oe J 64 0eyGSQG0 nan aes nennT 600 ,.of eis eh deaaerede er ee eid Lax shah att once esd CaHeRE ERs. s Jas 6p ORAS alsixetal 7 > te. * 600 ,éf ro ccuvueceduss QURMEGE Dias « 60400 dUD eg OGM. OOn nim nnEE 000 ,.éif eereerzeree @4 ee. Uc Reals 5 i= 0's «10:0 pig Ratan agtmuooOA Och eee en da Jal ose RE REG 0. bs eag anlage O&b .cobS ‘7? + @ TN IstcT RR SUITLIIGALS — } ee wa eee ues leveceucccgcvucas+gQg@imatg Ytbavot mo 9gsystol O00 , O04 O00 226 eseaeseereveeea #4 He Ro ee rr Oe Te | afllid ‘ 900 , cOs aes owe eevee eee vcgdeceéunges Sah te Aven. ea GOSCR Ie etnsoooA & oés,f e* ee A mo Hbeuvtoos sestetal ; i" ase Ay eed . oa ey ac ceevesecalDotamizas) bevto0s sexst COE oo owe eoveene oc wan sine tetas) 4 ead een ed ee. ay tena ) hee revegnasseeavens MOR ELidg ss Sate? ; ne sortase ; aaah ele Vos . ani : my Pus ein) ~~ PROBLEM NO. 187 (N.Y. C.P.A. Examination) 185 The Metropolitan Book Company, a corporation, goes into voluntary lioguidation and the directors of the company, three in number, are designated trustees in liquidation. Below is a trial balance of the Book Company as of July 1, 1905, the date when its affairs are turned over to the trustees: 2 Capital atock .iss.s<«: Oe ee 8 iccsis ee eS eee $20,000.00 - GAsn, 2252.9 oe Teenie Sars er rt & 553.69 @ O©LLiGe Puenieweew ees eae oe 4s Das le ee 14 666492 & Meter aepoeivas.ye sess PRRs RR ER EY TEE oe 60.00 SP AOS ree LS nt ck eed ete thee ene 26,1 00400 6 Rogers & Co. moneys collected for their MOG Guley 6 46 + cane ee s« i 2a ale a res oe 14,738.00 7 Notes payable,.......s. Paina a tk distant ont 8 2 FypOtasau S Accounts peyable,«ssesasss CO ee ree 4,197.22 D> MSrGhAndise purchases ,..<. es cae cs de cess 27,404.74 DUOMO RCUOIOL OO SALES, os eh sense ee ce ed ae a eee 8,045.35 Se ey eae C8 Sibley & vs x eel ee Coin yaaa: Loe tobe et EAN PORE CEE ket aus e's na cow's e's jee Cheese BO w7 4,554.07 $74,554.07 ‘Value of merchandise on hand $20,183.86; other assets (items 3, 4 and 5) valued as in ledger. Trustees’ RECEIPTS Tee eae WE SR a Fah oe hee xe CE din wh wae wee ols Pg ee ee WG CEX (OB NG7 Tie se Sek 2 xe ceca x's pre tne ey (ee) eee ae Office furniture sold,....- Bes Geos et ee arma eS te ai ‘ Accounts receivable collected,.....seuee. ye ih tle eee Additional collections for Rogers & Co. Lin tA aes sales of merchandise,...... St Nene FAR Cia so Cd een Ba Commissions received from Rogers & CO-,..+.-e+ese-eee PAYMENTS NGGER HAL, «ceva iesiecneds Terror. irre ret tt tere eee MeGeUNCe DEl0, ss sed as bees ee 6 Bee Se ee ee Os ee Merchandise bought,...... errr eet eee eee te BXPENSeSscescccss a ee ea eb eile 40 oy ace ge be Remitted to Rogers & Co. in full,......-...e- Gis a iia Accounts receivable not collected are worthless. the account of the truetees in liquication. cash receipts and payments are as follows: & 553.69 60.00 487.90 22,872.75 1,965.24 22,090.70 6,703.24 $54, 735-52 ———— 427,573.50 4,197.22 562.55 5,697.01 16,703.24 $54,733.52 Prepare aes val LOW MEXEORT | (coitenimex® .A.4.0 ot.) a > ofat egog ,mottstogtoo & »Yueqmol scoMlaueeesgias ox ot IU, nye ; ai serst .yersquoo oat to etotoetib odt bas molebivoil yrsinvlov P. notishiup ii mi seetenty- ‘boteng ieso ets ,T9dawK f< Ylut to es yrsqmod Aoof oa? to oonsisd Ietrt 2 at woleg | ‘ tgosteurt aft oF tevo bemtw Sie eriatie ast nestw eseb cdl pares r@ RO gO Ve wee e's e's cee deine ocoe4 bot ashe a a Oa, 28a §. bee ee bed Gagcee (dC Ree Cake bbete treet a SO .380, Lc uv ewe eee keds von s sche e gee dees esittOo s ‘ 00.03 5 ween Cee kl CO. lal be eee ee eee ane a BR ESL, AS. visa heccvurasscases sp Q@LGQv e09% SINNOOOA a xigc¥ tot betasilos ayomom .o0 8 stego0H Oo Al OO .8Ev af Cee ee meee eee tensa nnes ee see NOOOS al me .ETS CS ss eUoa aes cdels chee e Vas bg OReRG Gie Omen) am >. i Sar TOL. Cree teem enev ewer res were SLIBY SG atavooodA 8 : 9 | HULDOLLUS .cccnerev verse ces BORRMOTUG SalbnadotoM @° * 4 C2.020,8 i. Pee ie 34 eee eetbnsdoteM OL ig fe. ad, Of ee Sh Pe ee ee PON re ey ee Rye ae 08.886 Ps} ee ee eee Ree See -++,(tott05) ai nae SL al £0,966 0g ea | ee, amatt) eteses tertto 88. E8L,0S8¢ Saar no salbcadoree to euisv: ~ ane ~tonbel mi es bowlev (@ Sas b 4s " cawollot es 918 atmemysa Sas etqieco: daso *asotautT | Ell TaogA . Hy | 85 .od¢ i 09 660 6 004) 6 wid ale Wella a elaiee $14).0 4k a ee lee ae mo sonslsd- _ 00,00 SOCCeeCer ee re eee eee eee ee Ce ee ny } BOs TOE 8 or ei Core eaedersrienr onsen vcewe gMhOe Sai Intuy SoftI0O as oT. $fs8,.83 cos eee eevereene negroes gD ad Soll oo gidsv ts09T BI NNOSOA A 6S .é30,J/ ».-(ffut wt) .00 & etegoH tot emotfostios Lanoitibba OF ..0@0, 85 Cree rrererry oy eee ere ee eet to a9lsa AS .c0T 3 0 ale: Lie te se +++9009 3 819908 mort bevieost sttoieetomod | Se . ac COT SEL doh | 7 2TUsMy At os | "i e OC+eve .TSé SOOM eee eM ew eee rete ete wwe eee es eee sees EST astoll \ vi Ss Tel.b ee ee tem eens er sneer eww eeewe sede sasene Dleg etmyoooA ea een ceed eet ree eh se wmeNesie ee eee ae g CREMOO 92 tbnadotel we “2 fo. CSET R eee meee rhe eee eee wees eee hg AIBN “ec * i | a8: g08,2 ra she ante An ih »s-ceesesg tint mi .00 3 axegoH of besttimeHh Be 6 -Se.Sey poe Ault inoue a 2) , “y i | ei a ; estsaqetL .enelitiowr ote See asihoa — atihaetene: atnuoooA i “moiveoiupit at aseteutt odd te sre’ enc ra rie Pe PROBLEM NO. 188 186 (N.Y. C.P.A. Examination) From the facts set forth in problem arrange, in skeleton form, ledser accounts and outlines of subordinate book entries ror a. The lietropolitan Book Co. 1. AS turned over to trustees, ely 1, 1905; _&. AS closed after receipt of trustees’ account. . b. The trustees in lioguidation 1. When business was turned over to then, July 14) 2905: 2. When business was closed and account rendered. 164 ¥! at sabetene ae 9BAOTTS me es | SStqeae xeod Pataca ot o ¥ a ;800L .f yLo% ,eaeteuts — t908 tacetertt to _ ig / 80CL at elut red one |. -horebnet ‘ere do Pe ee oe aoe ee af ) RO RE aR Sah aia ye Vi) 1 Mae ae a ae re te Ea vi aye " ig aes h Aye > ee or i, ae Par il a a Pere a. g te Beds * J ie A 7 hi » : PROBLEM NO. 189 187 (N.Y. C.P.A. Bxamination) Walter Hopkins, while perfectly solvent and doing a profit- able manufacturing business, had so tied up his capital in plant and materials that he was unable to pay his debts and was on the point of suspending for want of funds to pay for labor, and his creditors were preparing to commence legal proceedings to enforce a settlement. The condition of his affairs at this time was as follows: . BALANCE SHEET Liabilities Assets rete LO, hy eR Beit PLENC ered ia see a» $25,198 GCAVS Gills « «a some rete ale ef 50, 000 2 a PE le. Por eye rg RI Pa i PUL Wee + eee ees bs oie 4,900 Materials, raw and partiy finished,.... 40,400 Finished goods, .’.. > +. 6,070 Accounts receivable,.. Spe &75,130 $75,130 At a meeting of creditors he said that while his plant was entirely efficient, it was all of special character and would realize on forced sale only the value of scrap, that the un- fTinishea@ goods would require the employment of skill and pro- cesses known to him only, and that while forced suspension would yield to his creditors not over 50%, it would ruin him absolutely. . The creditors decided to advance him a loan of $5,000 to con- tinue operations and allow him additional credit for materials and expenses. St nn P gee OSLS | | ae : ‘ce «bs teed adv o¢ osiltset of bne etosrtinos steiquos of teSt0 al: seibapdorsm heesdo te seteurt ent toote at zbocy emf mo Seatnsy §00,00%% betselios tasy si guitubh das 000.084 to ¢nwome edt oF 8 ~ ,a9ls@ aott deso wood tepto act .208 rot belitee eaw tniv0co0s moltehoneses od? a” sonsted .0 008,22 eldsvisoet allid ov dae OoL ae beoaliset pro’, *- fess 000,04 aniyeq yd beftten eaw recsq aoitebomooos saT yireq Das deerestal ,see% [eget gaifistas .000,31¢ gniwenet bus ’ 008, to aeeneqxe ‘ -ait Das eoxst ,aidaysq atnsooos edt ,esildsysq effid resto sat ) “sititea to gsaiyoo ait bleq etew aidrroms 8f£ tot speytior ao seates rs i ‘UF ized em $e tito biagq esw 9989? tom edt to Leqionizg ot Bas ,snem - in ,006,{f% stid wreio tewollok a@ stew eseensqxes gainnutr elt A a'setanurt 1000.20 areoitto ot esomswolis 5000, 10 Seareate 99 Tho “moo aft to sztario botebast Tre oot surt ede ,TO@l ,l «del “0 ey : RO .ebasd atl nt somsisd sass edd t9¥0 5 iq bas ssgitto eae | - stem base 000,80 atdsd tood bevoaticons osis orev sted? etab bisa Bei: 000.8% wots sek an a, le*oe3 acd S ,tnv0o08 noitsbiunii Sas nofitssiiser s e1sqett ‘to moitsniones is etsteo ent to teede somsiad s bas F: PROBLEM NO. 191 189 (N.Y. C.P.A. Examination) The affairs of Peter Post, a manufacturer, were in a very critical condition, for although he had an unimpaired investment of $62,500, and his books showed a clear increase of $6,022, he owed his trade creditors $25,289 and had only $265 in cash and $4,062 in receivable book accounts on which to rely for funds. The rest of his business estate was tied up in the following chattels which he had acquired in an effort to keep pace with a business growth that has outrun his capital; machinery and tools $31,562 and finished wares $7,587. It was also necessary in order to continue operations to have inmediate cash for pay rolls and incidental expenses. A meeting of his principal creditors was called and as it aopeared that the business was well established, profitable and had a sure and growing market, they decided to advance him $6,000 in cash for immediate needs and extend his credit in a sufficient amount to permit of the purchase of necessary materials and generally to continue operations till the present stock of materials could be mace up and realized on. In order to insure the proper application of the funds and credit so provided, a trustee was appointed to administer the finances till the creditors' claims were satisfied, at which time the control would revert to the proprietor. The subsequent operations under the trusteeship were as follows: cash paid for labor $15,725, for expenses $5,430, for additional tools $750; purchases on book account, charged to materials $6,300, to expenses $15,000; sales on book account $72,300; loss on collection of book debts $380; personal drawings of Peter Post $3,500. The unliquidated values at the close of the trusteeship were as follows: inventory of raw materials $5,000; finished wares &27,900; accounts receivable outstanding $3,382 and accounts payable $89. Prepare with due regard to the grouping, order and arrange- ment of the items, as best calculated clearly to display the facts, (a) realizetion and liquidation account, (bv) trustee's cash accounts, (c) balence sheet of business as restored to Peter Post. Ref.- 2b<28 164 eer | fer .OM MataORt i (rottaninexE .Asd.9 ee A . ae 5 ‘yrev 6 at crow ,teivtostuasm 8 ,teot t9t99 Yo atietis oft = tremteevai betisaminy a& 58d ef dguodtis tel ,moks Ln0° retrigs of 990,38 to sasotonit te0lo & bewode stood aia & B ,002,559 Ito bas fess xi @6St ylao bed bas 06S,e8$ atotkbeto ebars ein bev -abtut rol viet of Moise wo atnwoons tood eidavisost ai S00, maiwoliot ot «i qu beit sew atetae eeaniaud eit to tasr ont @ diiw ecaq qoot ot Srotte aa at bativess bad ef aoicdw eletitada - pioot bas vienicosm .Jstiqas eid avittuo asd tad Ayworg, eesnieud P@ebr0 mi yisessoon coals sew JT .T8a,%@ eotsw Beteianit bans Sad , L183 - bas allot yer tot deso ofeibeami eved of amoiterego sumisaos oF | | : »eeseaneqxs Ietashioal ti es hos beliso esw e1cdibeto Isqionitg eid to gnivesm A bne ofdettiorw ,bodeiidstes Llew asw esenieud ont tads betseqge 900,04 aid soasvhs o¢ bebiogh yads ,tedtem aaiwotg bas stve 8 Sed gneioittua ge ai tibeto sin baetxe bas absem etsibeomi tot daso mi | bas 2isitetss yisessses te sesdotmq oft To Simreq of JInvoms a. to Moots tasegrq scl? ILkd enoitsteqo eumitaos of yitetone3. | .vo pesstiset bas qu shan ed bivoo eisizeisaa bas abn% odt to soltssifeqs tegetq emt etueni of tehto al 7 _ oct totelinimbs of betaiodgs ssw seteust s ,5ebivotq 66 Fibsto - emis doinw ts ,ositeitse evew amislo *erotibera oft Ifit seonenit | ,toteixqorg oft of txrover Sivow Lotinoo edt as s19ow gisesstautt edt tebay emoitsiege tmoupeadue oat . tot .032,86 aseacqee tot .aS%,2i¢ todsf 10% Steg Maso :ewoilot ot Sexisrio ,tavoo08 Mood mo agaanomma ;O@Th efoot fanoitibbs ~ _ teyoo0s xood mo esise ; 500,¢f8 esansqxs of ,006,3@ eisiretsa — agniwexb Isncer)eq ;088¢ etdeb dood to mnottestiod mo aeol ;00E.ST% | . | | -008,5¢ Saot teted To | stew qideossiautt sift to saolo edt 3m seutey betabivpiing sat ; esisw bodainit :000,28% efaivetem wer to ytodneval tawollot as gtnuooos Sane S85,34 onibestetue eldavieset atmuoocs {008,TS¢ i 488E sidsyeq | “SBNSTIS has tobto ,ariquote edt oF bxeget aub dviw ereqetT eit yelqaib of yivselo betslugisa taod e@ .emsti oct to nom etostedrt (d}) ,tnwoocs motdsbinpil bas oy ata (a) ,atost of bototest as eesnievd to teede aomaisd (0) ,etnwo008 dasa lt -teol totes _ SES st9f bat oe ie ae * a) * PROBLEM NO. 192 190 (N.Y. C.P.A. Examination) A, B, C and D, partners sharing profits equally, decided to Gissolve partnership, and on December 31, 1908, appoint a liqui- dator and transfer all assets to him. He is to receive for his services 5% of the cash collected by him in the liquidation of the assets. The’ liquidator is also to be allowed the expenses paid by him in the liquidation of the business as follows: Clerk hire, e eo Dinas we & ££ Fe + @£@ eo He 8 @ oe . 6 Ss ¢ . *¢e¢ » s-ertrg? $1,000 Rent, . . e * ° . . e@eessee*® . * . «ese e Sa 2 ££ Fa & © €@ DP 2 FF 2 £2Le 2 SF Qe 2 SS & 500 MiScellancous EXPENSES jue .w sews wae women « eye aoe wk 700 All the deots of the firm were paid and all the notes and the accounts were collected excepting $3,200 of worthless and uncollectible accounts. The furniture and fixtures brought $2,800, end the merchandise was sold for $18,000 cash. The balance pay-~ able to partners was distributed on December 31, 1908. No interest is to be figured on the partner's accounts or on the moneyS in possesSion of the liquidator. Prepare cash account of liquidator, statement showing ex- penses and losses in liquidation, and statement of the partners! accounts. The balance sheet of the firm on December 31, 1908, was as follows: Debits Credits VG Wi G ea TA RCUTGs , 94 6 55 de wires ¥ 40 Make tte ee $ 3,500 MEXGHAMGLSES. LNVENTOTY » «o 0 sk Ade tae oe ee ee eee saee 20,900 BO GOS ONECS) VE Lia aiaas 64 ow > ete dae Diiseeck e ie be ae 14,000 AECGUBGS LECCE] VADLE. © + 64.06% sive eerie e Se ny akan het ai iy 38,000 Unearned insurance premium a eae during 1908 800 ABs ahd sey hee hi Saag ack aes ace eee > 8 dis rie 6 oes 7,500 PS 7A ey ay AE EOE tee wry ee ee €& 5,000 AGGCRONLS “GAYS LE 2 oc in a << s ae gat SG! blew etn a 38,740 Accrued interest on notes payaole,........ win oes 80 ACCTUGEAUAREGS, here) Abs Ae eo. 6 Slaw 5 Sa chamaanie’s eae 480 Pie. GROUT Ae: edd stvisceaerike takes Bs Kewiate otlainis iso @ 16,000 B'S. aACGOUNnt, «cee with tilda sh ad abies ae antes alec Lene 8,000 Uh CIOL ETE Pecan, o dheta/ls ‘grmicire: aucite. Sate 44° > ervidiaitate kes ales «se 10,000 D's account, ..-.-+s0+4. ee ee ee ee eee aT oe We 6,000 POURS, Pepe tes oe a A Se ene $84,300 $84,300 Ref. 27-1 ea eee. ie ad 7 a 7 Tl P : ee oer Sek .O% METEOR © . . ; ty ; 4 " . ; = ' Ahan ry a — (006. .S¢ ssword asrutxit dre oust iaiet ed? »etayoooe 9 _eysq sanéiad ect dae. 000.8289 tot Sfos esw ge thouacdot Sat eT. " Ww iy vee i (aoitsnimexd Ae Ts 9 Ys | ot bobtoeb .yifawps editor gnizene arentisg Ge eivptf£ m tatogqs .80eL .L& cadasoot ao bas .qimert att tot eviesot oF oi oH | mid o¢ etoses Lip Te. “to motteabiupri ont mi mid qd betovlico daso say 4 asensgqxs ond bowolis od of ovis ei totabiuoll oat ‘awolict es sesntaud oft Bo moitebiapi£ om oe “p00, £6 OR ised ood a ey ey oe yy. ee Kot ces aveervedeed seer meee 19 COBNOGEA agconsilesaky bus ooton ect Ife Sus bisg otew ark? ed to atdeb ont L4A De 3 bas ceofdtiow to OO&,50 Buksqeoxs betoaiflco sisT ed my 0998 idistoe ifoons of .800f ,1o redmecat ae betudiziald eaw areatrsq oF eft edt no 1o atnvo798 BS 'readtag: ony a0 potuget od oF ak saetetai -,gotebhupil adt To moleaseaog ai @yoerom -*9 griworla tnometet@ ~toteatupil to Jasooos daso eraqgeta teventisq oft to toometsta Sas amoitsbiupil ai goceol bas aeaneg .800L .f8 tedmeced- mo mmkt af% To fegda esonsisd efT .admu0095 lf ; 7 ? teveliol 98 saw et toad atidad 48 ca ae Age 7% O0e.& ca uk'beansle vee dau sis te CO2G0RSgRt G5 Mn Sean 008,08 sseveaees cp oeewecsverrvss sttodmevak saibusdoteit O00 aL ee ee ues iran pra we oucpes ree g @lLGB¥ [009% eet off . HOO ~oo ev eae awe ee eee ede + He a ae ee pidsvisr2et atnauoood 008 8001 pak inh qritigxe cwimerg sonsivent benrsenU 00é,7 er aso oo0.2.§ a .d vlee bubaune hte ~ Cp eas ge aot of par. 6s ae ventceecesarosgens og SECBYSG BFCU0DOA 08 3 secesvusee se SL08¥8@ @otom mo Jeetosns beutooA “+ O65 he o' a) ei ak nS noe Ale: che buen liye inens ape Garee Gee 000,92 ) age see cadlla a atbatie oleh ane intts help iene maaan ' 000.3 js ee 20 We vile Pe eee «eS MNQD98 a'a@ 0C0,6f eee aL yew pe ett aw e e OS eee seo ace datuilhie Sa Slat oie aikns sk keer or oo TT See EEE ; Pra, | | {8S .toh PROBLEM NO. 193 42, //% Mh yo* 191 - ( Nets C an ex Examination) fie ie WH i) 4 The cirectors of a manufacturing company, before the clos- ing and auditing of the books for the half year ending December 1, declared out of the net earnings of the company, a dividend for the half year, of 4% on the preferred stock of $100,000 and 3% on the common stock of $100,000. There has peen brought forward from the last half year, an undivided balance of profit of $4,000 and after the audit of the books the trial valance is round to be as follows: TRIAL BALANCE DECEMBER 31 Real estate and building, $332,500 40,000 80,000 29,000 82,500 88,000 Plant and machinerv, Patents and good will, inventoryodulyoljsss.... PUSGDREAR Gs wee wen ee vw ae» Ra ATGe cats seo iy hh. . COUT Fp oad ee se eda s 5 6,000 Salaries general,....... Salaries menagement,.... 5,000 Insurance, .%s.% As a6 ote oa Allowances,...... Se ee Gse00 PKOLENt yaw GAG bus so as ‘ 1,500 Discount and interest,.. CGN iN DANK gies cc cas ; 8,000 BNVOG CEMENTS gc. ws wa aah Loe Miscell@neous expense... 4,300 Book Gebts;.s...- Pelee amas Pfd. stock in treasury,. or BEAL T Bie oes ox 30 Bs 1,000 Stock on hand $26,500. Preferred stock,..... $100,000 Common Stock, seca ss és 100,000 SH eSgas WONG wa. eee ee Pe ee Notes payable,......- 2t7;, 000 Account payeble,..... 14,000 $459,175 From the above prepare profit ane. loss and income statement and balance sheet, giving effect in accounts to depreciation at the raté of ‘7- 1/2% a year, on plant and machinery, and making an allowance of 5% on the vook debts to provide for bad debts; also create a liability in the balance sheet for dividend as stated. Ref. 28-2 \ (exo to ace tenet py to5 te ea0fo edt ototed .ynnomoo satiutostvasm & to 4 | “tedmeoeC gnibas tssy tied edt cot siocd to gais Bbaobivid 8 ,ynsqcios edt io egninise ten oat to tuo - Be 000,00L8 to Aoote beti9ts te OF 10 RB To 4% a, taguore « ised asd etenT .000,005¢ to toote MOOS titotq-to oonsisd bebiv thnw ca .teey tilad deal edd mort 8% sonaisd feist ods aidood Mas to diius sdf rotts bas 000,4¢ to sewollot baad has ot Sauor £5 EET RI ED Pa LAE ALTE | 008, SES carts Liud bas otetes Isel WO00,00L9 ......aooce bexretert 0 PO ROOL bes .ases sote nomod 000,08 .UTenicesa Sas stasis 4 AS) esvces acces @9l8a §~000,68 , yd bdw booy has atnetal 800,25 eesee od wk yist yvrotneral 002 Sa vee seeeeoeses + SSSR NOTT 200 . 82 + me aelee x 000.8 ,eideyad aad.oxf. ; ridsyae SnwoooA mee, tS: owe mea eawe ee ee Be 4 Pee iudeag_ee be TOGHE ¥ » 4809 Oco,I£ *** 800.8 sos, SMOMeRSiSM BoIrslac evs. be sen ble ema weg SORE. O@8,a oceesenes sees, BOOKBWOLE O08 ,£ a oes #6. 00,0 ew + “OBS. i tastadal Oas Javosard 000,48 ET ae elaed ak deed O00. a. ® a We Cee el Oiyh -.9ensgue oucensl loos it OOO aR J sea wee ees oe ee RISD BO08 000.2 «.Civessid mi) gootea .btg GOO pi) eles lennt a thts ee «ee lSTONS3 Bolxis ied ee Eee ee te as ‘baa tf tore Es Ststetq sveds sit mora 60a. ae basd wo 9538, tt Soa tte arty is # toed 2 90nsfed Sas Sasuetsata smoont baw: agol. SnSic NO ,189y & AW oS to etst edt $8 moktetoerqeds oF atawooos OF gtdsh x- od sit co RB +6 sonewolls me gnivem Sas ,yvreniiosm bas Sensisd eit at ysilidsil s s#eero oale etdeb bad tot. 9h fvotg | shetsta a8 bnebivib tot. tears ys bas $-88 tet =o: 192 PROBLEM NO. 194 (N.Y. C.P.A. Examination) The Black Birch Spool Company decided to retire from business and dissoive tiie cornoration. To that end-a meeting of the stock- holders was called for Seytember 10, to consider the determine the advisability of such action. The stockholders decided to dissolve the company and authorized the oresident and the treasurer to perform all necessary acts to accomplish this end at the earliest possible date. ; A trial balance from the company's books taken at the close of business, August 31, showed the following amounts: Land and building,.... § 55,000 First mortgage 6% Machinery and machine VOMOSUS diva ee’ cv oh ae Ope COREE ca ere Oae Re ELLY, 554.000 Interest accrued . Shop end hand tools (in on above hones,--.. S16 store pratd. 14. nenes 5,000 -Accounts payahble,.... aL FOO Furniture and fixtures, 9,700 Reserve for depre- Raw materials end ciation of Bldg.,.. 5,200 Pe SLE eC TEON 1 ws see 10,550 Reserve for depre- Aceduyts MPeveivable,.... 23,400 siation of Mach.,.. 8,000 Cash in bank and in Reserve for cepre- SOG ane lk wheat te hkg DU ciation of furni- ture and fixtures... 5,100 SUrQLUe pes reg eeseae ss BO yOUG Capital stock, au- thorized, issued ont and outstanding,...- 60,000 gi 49,770 $149,770 ‘The lend and building were sold to the mortgagee for $50,000 as of August 31. The entries on the cash book between September 1 and Seotember 30 show the following receipts and disbursements: Receipts: land and building $21,234; machinery $25,340; shop and hand tools $2,100; furniture and fixtures $3,700; raw materials $7,950; accounts receivable $23,130. Disbursements: Accounts payable $21,700; miscellaneous ex- -penses $1,530.20. Prepare (a) journal entries reflecting the dissolution of the company, as at September 30, (bv) statement of realization and liquidation that will show the percentage payable to the stock- holders on their holdings. Ref. 44-6 164 Ned fa é . | Dex Ol LTEORT Tan ene (wokten tent vet. D a ie sis ic par eey iter tad saat atiter o¢ bobtoas yasercod fad € | eleota edd To na. toom a bao tect of .m0 bts tom : GMs sfimreteds ost rob fenos of «OL and a 90 . Sviowath ot bebtoss ersbloxoote eal ; ot tetvesott sft bus tneh ies ont fie f Feetizes sit js dae aisit caer re ot ata (tsa o oe, @@0t0 ost ts motet alot eran ot. ott estiiiel : tatayems nafwotlot ont bewo sia lS tevgak oo to . "a anendrom ¢erth 000,.caée e': asap tbtiud « Dy Axe | EM OS Soi ee aes BORO entdoanc Sas yrenisosi a ; SsurTran8 tea soratit ~O00.6 crereenenes ee sy B£O it SS Rl 4 aft eanod evods M0 ii) aicod base oo OOY-.sS ror og OERAY ‘Bu admuooSh: O00. wales eae eae ss vie'e One — -o1q95 Tol SvteasHh. O00, jsentinatt pag grag iar? menos . eolee : t : z ° ) ead fala) i : MO etenotesd mot Sovicooen dea CO.06L.8 00,008.01 00.088,0r | ; dead | . ‘ * 8 ©, « S2ROR5A teabsy OO.OB8." 00.0Mf.8 O0.08sa . 2 ° » SfOL .f vLut .esotdeq ~~ 00. ave, 7 WeeeyY COCR [LOL LE .98d .evoddet 00.008 00.008 00.008 6£0L .f yiul .Snsd mo desd vttet 00.002 ) 006008. ‘O0.008 . SLCi fh .96t gM8L MO. desd ytteg . 00.053,.e O00.088,2 00.083, ; ar 5 i A = a ¥ e 4 r 7 - + ; a * a ms! on ae a ts ae (ar ; eee .8@f 50m Measont el ala. ee a | (mottoatowxt vA of 60 6¥MP | eanadoxe mg torol oyral 8 antob eroteredd 10° od eottesb ,yiteb enotsosemetd evoiomun Bev' eaol 10 shiotq edt wore od @ Oe gatiavodos | eso to elisteb of? trom dose to scolo ons | | . gewollot es S%5 #85 Q\1+28.5 to ager egatovs a1 ja ackinede gay, 8 e CleOh Ri 2 onstt 008,238 | : - ‘ esteem §=O98, 23. a 2) ge a ry . - a aelonege gniyvsd nitty bedieoges ons taigvcl Q\fs28.b to otet ogenevs as te. goiliede OOSE . handel | . » ie eons 009,058 . ine OOO.O02 S\f-Se. " # setonoar aniysq ts bisd gntftedes 009, 710d,aned sobrot edt yd eonevt OO0,css “ ekrad : exteam 000O,0af “ atiteh y * edt venom «2 .U mk gaiwora *9 hontem dnetnoveos = edisoeed . \ eam stn¢non oxo aidt mo Sitotq 9 | faniwot yrssesoen ond aotian eeontaud | tt -Ydotens bedoette edarooos swesbol sit qniveqety Drie ,2otasne wdaOL TOR o£ .OM MaIEOAT (aottentmexd ak ot oD eel) emox? 000,063 ewortod ztoY wel To .09 artisingd of «+ at %o te anted yerom . RY gs aveab 06 tot ~mobrod 6 ehan ei asol ond meri B\EHS.S et ognectons To ets? ont. . afces ~ROE\E BE egbtorioud ocd TD ebisqer at ti moctw 3\. Shaoids antworiod yd teol tto hevac ef doom worl ,oL | -(.asey ont oF eyed 055 to atesd mo | ie it hor PROBLEM NO, 200. 197 (N.Y. Ce Pe A. Examination) A New York company doing business in London, received the following trial balance from its London office at the end of a fiscal year: TRIAL BALANCE - LONDON BOOKS PREMG Fi sisie. sis's LOPS eeeeee«hl00,000 Accounts receivable, ecewseeusvere “15,5000 Accounts paya@bleys sess tse Seeders % 35,000 POS So, a chk ele ea eel ae wit et a he a ot 10,000 LECCE. Niassa wae ale a eee de oe 6 100,000 MerchonciSGiccaanee su we wee ews geen © sataygO00 New cYorlo jaf Pies Socount senvcrerree 135 , 000 Remittance SOCGUHT 1. ccc sec vees « 60,000 Cash ONG. DEC Ban ove were re eds «+ — 5,000 %270,000 £270,000 The New York books showed as follows: | TRIAL BALANCE = NEW YORK BOOKS bepltadiiatocky iw. PRs aed é TASHA, oe Rae aes ee Pe $1,000,000.00 Bateantes. 2. corgi atl Pe PIAL R, INS TB08 POCO 00 HOV SEO OOS Pew ole he Pe ells 6 656,100.00 TEIN Cry SOMITE, acids Welw Mb oee oe ely : vl thea EVIE OU,, Palele Kole’ Me vis Fis ote cee gated seve ¢ 10,000.00 Gas lis aiie se od ol Si nS jem ee ee a0 goles. 00 eet ee ee $1,291,712.50 $1,291, 712.50 The remittance account consisted of four 60 day drafts on London for $15,000 each, which were sold in New York at 4.85-1/2, 4,86, 4,86-1/2 anc 4.86- 3/4 respectively. Make such journal envives as are necessary to iiucorporate with the New York accounts the results of the year's business in Londen (conversion to be made at the average rate of exchange of the four remittances) and establish the new balance of London office accounts so that it will agree with the London books when converted into sterling at 4,87-1/4, the rate of exchange ruling on the last day of the year. Show also trial balance of the New York books after closing. Ref. 14=€5, cer out hevtooot “qmobsrod nt event 6 to Bao edt 38 ahah . BHO08 noaHor = aM JATAT 000, | 000,2° 000,88 2 008 son aOR (aoteecinsnd of ot A “Yo) a a ed Ween nereece ses 6am dae! 000, OL Rarer : O00, 0OL ] / Daly diate 6 0 1o6 wr OF OAL OS ase Oe 000 OS jibe eke cwkee 1 0e) er 000, cof ) : Geb ees ces ethVOODs SOrTTe | . : 000,03 spa duh nos oe sapere oonndd 108 | ' ay 900.8 Sia os sev nenas aga e ener | ' a 900 ONS 000.0884 | | | | a peot for en bawole extood Sage, Se ae an 4 } | enood xaOY WER ~ ‘ROUATAS — Boi: wa PW * * ..elvote seatge 00,090,000, £9 » seek Os seam ew gee ms FF 8 56.000, 003 hi 0 IIE 4 OO JOOE. O09 9 weekeeeere uw edfOOos @OL226 eae mo. Oa.ar67,fe$ . Vesbebeenee ese nee oom eoned tien ae 7 i O00. 900, OL View * sen ess * © * , eel ea ee } t 0a 820,28 ae ee ae ee il me 7 i 92.Si 125,12 08. SLV LOS 8 ge neater ct caliaeaenmmniael mo et tenth yab Od ctot to beget arioo +nnsooos Sloe ewew dors fyy _S\Le88.8 ts Ato¥ woll mk etAtogToo.. ae yitseaeoon ats ge 26%. etivest aid etavooos MroY wel onli acd ta gbecn 9d mt coonteud abiaey odd tO =o egradoxe to ofst Ih TOV" gpobaol rracdtw exlood nobnod any dstw oot etsy ods > ‘farts oes worde pert Lut "$e" so to adit to sonaisd icon act S yo gonelad wor arts deifgases soneds ime eat. dose 000,cha Xo? nobrod me \o 080d pe a S\i [-08.2 ‘ 38 : a Ss te, rr aig te ok one ovate Ome st mo betevae9) } mobdrtol a Set Scoala sot ert _ a BELY nos SOLTIO: (7) hime to¥S.2 te aniitods otek eo ~aney ond 2o a8, te : sanivolo xottsa edo en PROBLEM NO. 201. 198 (N.Y. C.P.A. Examination) A company is formed, under the laws of Mexico, to take over and work certain mining properties. At the énd of one year -the company is found to possess Bee LATS , + cee wre ee ee wae a peleians nee Le ae .» $484,675.48 Balad ners ‘arid SwOP Ovens y aie else ele ie eal Me BPs i ape? 20,499.76 Pa TOY fe ilate Seleleie ae teeeie 10 Wwe ce eo cre i Pee tO; Gle~6bG Cash OT HANG “AA or ig ee hess ee eer en ew ne ee ees st 24,612.50 BiMWer WNL rake eek eww s cca ene b ena ddnnnes ened 85,209.50 CREATES CIE a ree eet a 9 Aisa wale pn ler at alin ts aie wea wi aatata wane 13,680.00 MeWCHenC SG vias am 4 oie we ale ies e's a Feta ten Raha ie eee oho aha ee a 5,420.80 FOS ss) Ae rat se Ole fe lainaiio's' ooo wera eo pia wheks giehetahanp — 679,20 The company owes PISO PCIe ys eee sie skis es Pera Aedes es ise aerate oe Bk 0,890.12 On account of PREDOLLS ys eee tee so ele as Ore 400.00 Note Gue in six months,with interest at i oe Usb ag 25,000.00 The capital stock (full psa Eo She ols GR dt) RU ee eg ea 500,000.00 Set up balance sheet. As the greater part of the capital invested in the undertaking set forth in problem ts Tvsnianed oy citizens of the State of New York, a&@ corporation is organized under the laws of that state to acquire a majority of the capital stock of the Mexican company and thus to control its afffiirs. The capital is fixed at $200, O00, all of which is subscribed for and paid in at 120. An issue of "$200, OOO in 20 year 6 per cent gold bonds is authorized and sold at 110. The new company purchases 4,000 shares of the capital stock of the Mexican company, par value $100 per share, Mexican silver at 150. At the end of one year a dividend of 15% is received on these shares. The taxes and expenses of the company are $8,640. : | Set up a profit and loss statement and balance sheet, assum- ing the value of the Mexican dollar to be 50 cents, gold. Ref. 17-1. 7. —- 1 att tart ie -? eT, en - ¢ als , ' “ee t 7 A Ber 08 son WeIEORT ae (motsentmexs vA. SEQ f9v0 eat ot ~ootnell to ews f edt 1tsbny de to" ames anich: ono To frre. ‘ets SA .eettreqoxy 2 aebee ) | 7 aay : : a { ‘ biies bebe ie) ee ped 4 ar, cea ,0s etree ens ee eee eeares en ¢ CINOMOVOTGM i . 88.818, 23 eee St eee oS 08,813.58 ee ee ee ree rae > oo) 8 ai ie Py 13) MSs ee seeianeamh ty a~ o>. .- en AY arr’ 09,;083,2f 3° died eee 08 .084,8 : CP RAPED NEO REARAY Oo oe eee ks bee or Of, QT) ; eee ee ee Sf£,008 .c 2 a 8 Mego 06.008 eer ester See he Uaipa hs. ++ sos. SLL ORRRe to pane ray MOLOOO ES inca tn ahd $8 deenotai “tiv, edtaom ake mt aud Stor ps abate pw (eee g eae caveats (BE sq iit) Moots Isticss ed? ~tooce eonsied qus tea | anites ebay att of boteerat dabenéo Sit ie frag qoteexg ant BA «a 70 @dat® ent to ends ivre YF bende treat a neitotg nk perch poke gee, Aa etede tedt to ewal ont team bestneato ot soLtstogyvoo a a YAsgnoo aesoixeli edt to woote {sttess adiz to we Ltot sn igtianaanen' fe ve bexfl ef {attqso ext .ortsite ett fotos ot ead bon 9 MTA .OSf ge ak bisq San tot becivoe seb ait dotdw %o fia. heaitordiue at ehnod 5fon Froo «eq 5 rsov OF mt 000 , 0083 << . ot To getsde 000.2 seesdouue; vasenco won oi? Tae oa, Loe 2 tate tea O0f8 sutav 180 e VABGMOD abo teeit sit 10 aoote fatiqss — R@Lf Yo hnehivip s IS97 9X0 to Sno os tA .OCE Ys Seville meaotxen ~ ang to ae Ona exe oriT BoTare 1003.68 oa0 ps po ef Sat RS Saga a= -nueee , dooce Sanhial. Son sromedste szol Sne tft. a or tos — +ofog hier 06 ad of saifoh 130 xed odd te bili edt pe AOL PROBLEM NO. 202. 199 (N.Y..C.P.A. Examination) A French merchant having a debt of £10,000 to liquidate in London in 45 days, desires to know where it would be the most advantageous for him to purchase English money, in Paris, Amsterdam or Berlin. The market quotations in the respective places on a certain given date reveal the foliowing: Paris Prs.. } LOMO OM DADETS SUS Ly, sarees soi 0G. SLE GCF s s. Boacic Jess 6% Amsterdam paper at & MO. ,.+essses Se eee ge. 205 and 4% Berlin) paper! ati Gi mor ss us oo Ms. Oven hd Gor 121-3/4 and 4% Amsterdam Guilders Disc. in Loncon Oe re eee MONUIS 2 esos Ree ae ween os OR Se 6% Berlin Reischmarks Dise.«in London BO, Be. DB. MOBENSG ox ws't'7 28... Ws 5. Obrien Pals 6% Prepare the required:statement, ignoring all banking charges ' and selling commissions. Ref. 352.6 PROBLEM NO. 203. (N.Y. C.P.A. Examination) ‘The following is the trial balance of Oliver and James, Agents, Buffalo branch, December 31, 1912: ew Biwi wi fire eed wan lances. bbls eri icterest as. $2,500 ee ee Ss che cea edly ee aN cele es ke es re $3,000 COS et Oke kaw whew kek Babee bee ee Pk hale ales 6 av ecole 64900 PEDONS OGG 069-93 eG GSS SRES iM ABS SS «CULE SSS : 800 PerUuBetmOLss BO CCUNTS STS TG a TG SSG RG Ue es eee 3,800 %6, 300 $6, 300 Inventory $2,000. From the above data make the journal entries to adjust the New York books. Ref, 35-35. 164 eer 480808 #ATAORS (notsantnext “Ghee. Xe) nt etabbyptt of 000,0f.g%0 3088 8 a rerioien teom sat od Bivoew $i avatw worat ot voutdanel ya) , eatied at .yenom dei fend Besos ot mid to | | a . +s E88 0 msbhrios emh : : 5 » EER ISS g mo geantg svitooqast odd af enottatoup t oct ) radiwoklox wit 4 vet odeb movig ; BT , : a ate ‘ ag Ra wear eVS.88 ae ds cdeee vse seare date anette ye qogse »Hriol 2") Hers 30S ob one UMS BO Ee oe eed «Ole & 3s T9G8d eb =) bas D\SefSf recesses eetterseseeesenqeom & 38 T3q SC at ived | | . mp Svodems Moomod ai .oeld erobLligd Ro e*#*#eaceewet es Ceee te sereaneee ewes odnom 8 ta TO. Sf | 7 | | bined a beOfmol at .2ef es) Tin axitanrioe £67 | ) a nb eens A eee eh Se 28.08 @éatado aninasd ([[s gaftongl ~inemetsste betinpes ods eTsqeTts =] | “.ertotealmmoo gatifoe Bas ae a8e8E . tof .c08 .Of MaIHORT — (gotten imaxd eAd.0 YO) er. ; ; a SBdHORA ,20mSL Sra tovifO to semaisd [sity ens et griwoffot ont - | | ! :fer ,f£8 sedmeced ,Monetd ola ise ER, duis din’ b 6 Wk sieid 3 s,08 ve cone ale woul CODES eis cen chs Caidinds sacneveseevecse p SURV LOGG— Benmuoan 002.5 Aaee2 02 *@ © +s f ** @ © * cae edule acagh 0d Ogee eee fead | 08 sesseerenenseeereccorsegeusesesuassen seas sB@Omodad 003,o : § . sear eve cawecccidun'tl a enanen ele gelhanado10N 005.3% 008,94 | RELL NTS a 000, $2 aati. 4 ent feaibs oF asinine Lanquol, sdd salem 8359 ‘ovods sit mord is eatood 310¥ seo! .2<88 .t0f BOL PROBLEM NO. 204. 300 (N.Y. C.P.A. Examination) William Pitt and John Fox, merchants with offices in Manchester and New York, equally interested in a business venture, decide to dissolve the partnership as at December 31, 1911, at which time their financial position is as follows: Accounts receivable uncollected,....... onaseesy wtg000 = $19,480 Preece Lurrit cure: OM nemmicbsesstievasass s eee oe hag gene Be 487 ROCOUNLS Payable GHLIGUICRTEE eee ce scdcooncces B@ . YOO = 4,383 The accounts had been kept in cual currency. Pitt acts as liquidator and takes over the business, agreeing to purchase the furniture at a 10 per cent reduction as at January 1, 1912, and to allow on the same date to Fox £600 = $2,922 for his share of the goodwill. The accounts receivable are collected on the following dates: April 15/12,..- &1,000 = $4,870 April 23/18,.... & 100 =%$ 487 June 10/12,... £1,600 a 7702 (Oct. 6/12. « Bl. G00 6,844 The balance is uncollectible and considered lost. The accounts payable are liquidated in full as follows: March 11/12,... B 100 = 487 Aprii 20/12,.... 8 200=% 974 Mey YSO/72 >... & 306 eOGY POcte. | 26732, vnae Ge BOO =” 1,462 After deduction of the payments made, the net receipts are realized on a certain average date (to be determined) from the date of dissolution. Pitt advances to Pox £1,000 = $4,870 on March 31, 1912, and pays him the balance on January 1, 1913, with interest at 6% per annum. | Prepare an account current in English currency only (calculate ing interest at above stated rate) as Pitt shall render to Fox, disclosing the amount cue the latter as at January 1, 1913, Ref ° 55e4 2 164 Pa!) Se ee eo ee ee a). ne S| fi ce ee ee eee (no ltorinsxd eAn Ted +¥.M) ) nt eoottio dtiw atmecdovem .xo% afot bas t¢id metitiw swinev esontesd s mt Seoteetetat yifaspe fot worl Sis teteodonseM te ,[{@L ,{& tedmoosd ts ee qidetentrag oft ovloeelh od ebtoeb . | sewolfot es et moktiteog Latonsatt tkedt emits dotdw 000,34 ucaccecescvaeeqhotQotioons oldavieost esmu0290A OBS. Cf@ = vas on oof ma céissnadeale ees weepesn mo eecod Borst eotTto oh | = g0e a ses vevseauceeecegueceosspiiag eidaysq etruoso0A ; + YOaaTILS feu mt tqev need bac etasyooos edt _ grieetms ,ceontaud oft yevo eoxtat Bas totebiluptl eae estos SIIT _ Yytsuvest ts 23 aoitoubet taso teq Of o te sitter) eds seasioruq oF eos tot SSC,S9 = 008d xot oF oteb omne ody sto wolis of Sas ,SL0L ,f »ffLiwboos eft to stare elf seotsh antwoffot ent ao botoelfoo ets sf{davfesor etauooos ent > Fp $= COL JF o.-oSf\ES LEaqA OTG.d9 = 000.fe ..:,SE\GL Ltaqs Se; $22.3 — 008 . fd reas -to0 ger.? = O00, fa oe + @SL\OE . Stl ; ; feof bowebhtenop Sas efdkisoeffoony ef sonaied ont of sewol fot? as {fut at botsbiupri ets sideysq stdavoogs eat Ei pre = 00S 2 .....Sf\OS finqA Vet ¢ = OOf & aoe eSfi\fl dotsM ie So3.{ = 00@ 4 oees eek \an ~f00 (63,1. = DOE 2 woe e Sl OS ys" A: 818 efqiscert ton sft ,sbem ataemysq oct To sottoussd tedta sottyfLoeelhs to etab bas .Sfet £2 doxwid no OYS,3¢ = 000,14 xo% od eoomavhs $3Rd ) etelsols>) Ylno yonetiwo detigad mi tastive jauoose ma ertsqert ex0l of Tobnog If{scle JotG as (stat betste avods ge daotedal act ,8fef .f wisunet ts as tettal odd ovb tavoma edt gateoloeth . ehetE . tA par , om 5) 6 cy 7 a ry NO ee edit mort (becimretoh ed of) steb ogereve aist1eD 8 Mo bestises is RO te seorstal dytw ,ciGl .f yrsuast no sonsied eit mid ayeq “PROBLEM NO. 205 B01 (N.Y. CePeAs Examination) Wright, Dunbar & Company, of New York,U- S. A., and Van Allen & Company, of Amsterdam, Holland, bankers and Cealers in foreign exchange, enter into a joint venture on January 2, 1914, for the - purpose of dealing in foreign exchange. . It is agreec that profits or losses are to be shared equally, that interest on the account current is to be figured at 6% per annum, exact number of days per month, and that guilders at sight are to be calculated at 40-1/4. The blotter of the New York bankers records the following completed transactions for the joint venture of the first month's operations: | January 10, 1914 | Received on a/c from Borton Bros., New York, and sent to Van Allen & Company 2/c joint venture, £2,060 on London, due February 10, 1914, at 4.87 sight and 4-1/2%. | January 16, 1914 Receivec from Van Alien & Company value January 2, 1914, their Graft on Wiener Bros., due February 25, 1914, kronen 48,000 on Vienna at 49-1/2 guilders, 2 months, discount 4%. January 16, 1914 Cable from Van Allen & Company that they have sold for a/e joint venture, value this day, £2,000 on London, cue February 10, 1914, at 12 guilders, 2 months, discount 4%. January 16, 1914 Discounteé this day at National City Bank, New York, for a/c joint venture, value Jenuary 16,1914 kronen 48,000 on Vienna, due February 25, 1914, at 20-1/4, 3 months,discount 4%. January 27, 1914 Received from Van Allen & Company value January 13, 1914, their draft on Charles & Company, in Berlin, cue February 13, 1914, Rm. 30,000 at 59 guilders, 2 months, discount 5%. January 28, 1914 Sold for cash a/e joint venture, valve this day, Rm. 30,000 on Berlin, due February 13, 1914, at .95, 3 months, discount 5%, Prepare as at January 31, 1914: (a) A statement showing separately the results of operations as concucted in New York and Amsterdam respectively. (ob) The lecger accounts of the joint venture and of Van Allen & Company as kept by the New York firm of bankers. Ref. 56-1. 164 LOS 808 OH wareOn 4 fnottcalisx «AT 9) eo 7 ‘MellA maV base 4.A of -Ulto¥ wot To .yasqmewe™ mtoant nf atnfaos bas atetacd ,onetfon usSTed er ods tok ,dLef .S yisrast 20 aad icy tntot # odmt % | onnedoxs agletol mf gaku axesoupe bovare od oF 91s eoerol’ to et lotg “$ectd 908% 28 to hewart ed of Bf Faovive tasroo ge ya | sitet $n ovobftua tant — edinom teg cyeb To TOORun » too ts nose sol geriwolfot ord ebrooet AEROS aecoy wet edt To Synch e'ddnom govit ond to etutaev tafol, edt tot enottesenstt Bie Hie. 1BMOLS 2490 afer ,O£ qicuest / sv of fnoe Bue yro¥ went Leona notiod mort o\s mo hevisooh ub ,obmot 99 000,82 ,aiudnov tnto! o\e versqied 8 aolis re led Aas tigte V8.5 te ,dfeL ,Of wrsecay Lene Sref ,of ytaunst forts , sete So yisunet onfev yraqeod & woLlA meV mow Sevieoeh ‘7 | mi :. meno'D' .SfOL ,@8 yragide? Suh ,.no7G somelW mo sist6 iy ear try soe tb ,eritnom & ,evediing S\f-e) ta sanelV no a pe Sr@k ,aL yrsuaslh | * tarot e\s sol Sfor evan yedd nad: yasgmod 3 melLA geV mort oided tn ,OL prairie or> ,rohaal mo 000,Se ,¢ab ekdd sulev ,eminer LPB dorooets Lantnoet & ,etshlivg Si tes , SQL afer ,oL yteunet a\s tot .xoY welt .fard vito Lanottean ts ys6 etd yong Sp i anne ty, ao 000,85 nono ti DEOL, aL yisounst aupisy .ewinaev ay “gh $nvoge tb, ocid.aom & DA L208 $s ames: eam Ysudes # re ‘ at) BEOL .WS yunectat DWtedt .SfeL .éf yiauest oulev yosgmod % natch nev mont. hovteoen eter Mf é wisuide” asa .rtiined ck ,vasqmod & sels a0 Heth oh8 dro‘? rH ,eddmon & ,eteb! iug ea ts wrager omih | prer 8S erasrat fio 000,02 mH ws etd suisv .eaudnay Inaloy 9\s deso tot bLoe — 4 ih ee tavooath ~afitnom © ,d@. ge ater .2l yirurdet eub ,aiiqed el | :ALOr . Is yao, $s ea etsgent Me Bou enotietsdao to stiueet odd ylotetaqee ankwoue gnsmetate a (ay 4 -vlovisoaqeot mabiotemA base a10oY wet al besoubmos meffA asV to ona otuieev Sebo, ed to etnwooo8 tenet oft seme eeterinad to mrt? + ox watt of we tco:’ es qasqod 3 PROBLEM NO. 206. 303 (N.Y. .C.P.Ae Examination) A London in current account with B of New York, cngages an accountant to prepare a statement, to be mailed to B, from the following cata: 1914 DEBITS r’ May. Lae sede ee ees vn s'e neces ceed see Coe HEY Ds eePRe ECan ee keh eneuceeae t LEt GUDE RE MER MEO MAAR HRs cee ces caus 340 pe OO er er 260 Total BOWGwe oe sy « 4.4 partes eae £1,357 1914 CREDITS Sea's wc ak Le ANG We 6 dis ee ox : ~£ 500 TP Relea Pics etre Date, oo bg gyi ; 300 LOCHL CECOLGS y nnn hewn s gee &¥ 800 BAIONGS sess hew ees ° ee £ OF eop+eeeeus4#464:c8468 8 Find the average due date of the account and the interest at 5% to July 1, 365 days to the year. Ref, 39-6. 164 - ri TT i aii di a a ‘ { 7 co ’ " ‘ , giao wo y: «i oF Se a: oie si a a ‘ Ors . i ; na VLE reeeteee a hee Ob “ im yee oeLl ; peer Pea sie Se | ee j Ae oe i e | - . f re _ s r a ¥ ey ' % ia ee a ee i'd vie + ae J 7 oes 008 & Eo cman a4 : bs i a j ri A 5 ¢ » s 2 a ' 7 “Ti / (00 im a ~4 f " vi al i ri ( . my i 008 t eseoese ee os C9 Ee oie : | ; 4 i * « | 7 * » al ined a m4 Yee 2 4 OREN 2H 68.5 #5 Ro * By teerotnt oft ban $ns10098 e mia od eva ccna ~~ ; | | Lat PROBLEM NO. 207. 203 (N.Y. C.P.A. Examination) A San Francisco corporation builds a plant and established a branch in Glasgow, Scotland. At the expiration of its fiscal ‘period a triel balance is forwarded to the San Francisco office, as follows: Deas 4 46.* 6.4," «0,9 ote he hcte® Sitch aLS8. tak? © Cte eS ee Accounts ASE TERTAS? Be Dik’ Lhe i €4:4 ots 5 ripe 42 +59, 8) TGs wigs oi tchs+ 6 4se sean est.* ake? Oo kat 4 45. e 25,000 Inventory (enc of fiscal nik cold Per ae 50,000 REMLGCENGS .ACCOVIE gee wimeie sue winyect oeyr eee + ee gs @: 2:4. ie Oe ree a 307,500 £675,000 £675,000 A trial balance of the San Francisco books at the same date was as follows; Capital BEOGK gaaces seo oe ns Lh ens se Oh ame aR eee ee $2,500,000.00 Ce ee ee aay wa eae ata Ay. 500, 000.00 GLASSOW BCCOUNT pe eeeenenscs Neeaeierneae LeGevseowsy REMI GUARCS BOGOR seen ncs cece ACS msi 729,201.25 Expenses at Gat Brancisco. «0 s.0.0 donee ‘ 25,000.00 CO whale 6k od ee ee ee LRA EEP EYE was 64,031.25 #3 229,281.25 $3,229,281.25 The remittance Account is composed of four sixty (60) day drafts on Glasgow for £57,500 each, which were sold in San Francisco at $4.85-1/2, $4,86,$4.86-1/2 and $4.86-3/4 respectfully. Prepare a balance sheet of the San Francisco books after closing and a statement of assets anc liabilities of the Glasgow branch reconciled with the San Francisco books. Clost the books at rate of exchange on last day of fiscal perioc $4.87-1/4 (con- eae of remittance to be mace at the average rate of the four bilisi. Ref. 51-4. iby Tay ea tos 4 OS .OM 2 (nobtentmant «Ad ) a : 7 6 bornetidstee bas Inelo. n ebhiied notss eee 1D fso2it ati to noisatiqxe edd tA beet | 9OETTO ooeionstt as& ont ot beSrawsay af : ie act a5 900 ,OéS3 eee ee ed creme O08 , Ff cihaess e q Ooo, “ae | een eee aerate ae reosnvueee Hees ease a 000, O& enie > sae ene tol tame paaahi "do" 000,084 ee Pe ee Oe ee Ce i aerveseeoue RM ADI DEAT cinlele haw mk geen eonatd timon 00.000 ,.d8 pevecrcavceeqgOD@lONeTi M82 te eOeneqxi ‘i , ‘ GS. LEO . 30 _ coeeenathe si gS. 68, 088,8$ 28,188,089,58 yah (08) ydxte wot te beeogntoa al gxHoooA sonnti beet ae@ at bfoc oxew Aotdw ,nose 006,%oe nan abe $0 10 gre . sti lvttoeqaey B\E+38.29 One S\1-33.2$,38,9¢ eS\ind8.89 ts ai tamil it tetts avood osetons «i mse ort to dooce oonnlad B ersqexg wogesla off to eolitiidsti Ss efoees to gnemetst2 #& bey grleolo exood add Geof) .afood ooatomsTy mse ends dilw Hheltonoset donned “109 ) AL-"8, Sg bofteq Isoett to yas desl mo egnedtoxe to stst $s “wOT odd Yo stat egeteve odd t8 obam oc oF Bars anit to eget ? * & wd=f8 ton 204 INVESTMENT ACCOUNTING AND MATHEMATICS, PROBLEM NO, 208. (N.¥. C.P.A. Examination) State the price at which the following bonds must be pur- chased, so as to net the purchaser 5% on the investment for the first five years, 4% on the investment for the second five years, -:and 3% on the investment for the last five years: Bonds for $10,000 maturing in 8 years, earning 4% i ae W 10 000 tt tt ie i! i! 3% ft tt 10,000 ty Wl 15 it '! 2% Show the realization account on the basis of purchase price. Ref. 6-5. PROBLEM NO.209. (N.Y. C.P.A. Examination) A and B are dealers in bonds and share profits in the pro- portion of A seventy-five (75) per cent. B twenty-five (25) per cent. ‘A and B engage C to sell bonds, agreeing to pay him a salary equal to twenty-five (25) per cent. of the net profits to be divided between the partners. During the continuance of C's contract the firm purchases one hundred thousand dollars ($100,000) Waterville Traction Come pany first mortgage 5% bonds on a 3% basis. The bonds have eighteen (18) months to run, interest payable semi-annually (three interest periods). The firm holds the Waterville bonds till maturity. Prepare a statement of the Waterville bonc accounts, showing cost, interest and amortization. : The total profit to be adjusted is ten thousand dollars ($10,000). Show the division of this profit. Ref. eleZe 164 -2OITAMSUTAM GMA OUTTMTOOOA THE «BOS OM MEIGORT. ; (no htentmexd eA.9.9 > Ym) ae ey -wq sd teum ebaod gaiwolfoet edd dotdw de eo fo fe oid otase edtf 101 taemteovnt ent sto RS teascowg edt joa o2 .aresy evit brooee od tot Saomd_evat eit 10 RB 4 | vt Ss eqsey avit gest edt to? Kad i e i920 Re Qnimias ,eTASy e al getirtam Pe Tate : . | n ae wt " 000, ry .soitq seanomg to elesd ont mo tavosss nofttissifset edt wore | ait 08 | -208.0U MIIO#T | (motstanimexd eAeTeD oH) -orq oft at etitorq stsde bas ebaod at evelssb OTA @ bas A. Yo moti bg ,tneo tog (8N) evii-ysneves A ens tee tne teq (dS) eRe a «fete GON pure e mind vea ot gpreteowge ,2bnod {foe oF 2 9 @ bac A a od ot etitow, ton of? to ,ia99 teq (8S) eviieysnews of Laupo — ‘ > .etontisg edt asewsed nagecties “ i soresiomug att edt toatscoo 2'D 16 eonsumisaoo ott orto «nod mottoat? elliviotsaw (000,00fG) ersifioh hbasesodt bethand : eved ebaod orff .atesd RE 8 ao shnod RB egsadtom oak hoy giisucne-tmee eidsysq deorssat ,nsrt ot eddaom (81) moose .(abolxeq tas car aa wed beet an Litt erred ef{ivisday ons abloa mutt ent too gniwode ,edasooos Smo ellivreta’ ett to tnometsatea 8 efoftastinoma bus prewer ie etsliah Samesorts nod ek pastas ed o¢ shtonqg [ados off fotos (N.Y. C.P.A. Examination) An investment bond house purchased 10 New Jersey Traction Company first mortgage 5% bonds at 83-1/2; 10 New Orleans Gas Light and Power Company first mortgage 5% bonds at 1.04 (accrued interest not to be considered). | Prepare the necessary entries to record properly these trans- actions on the books of the bond house and to facilitate an audit. Ref. 56=3 ° “PROBLEM NO. 211. (N,¥..C.P.A. Exariination) A co-operative assessment association began writing policies in 1909 on the five year endowment plan, the members being en- tTitied to participation in the surpinus at the end of said period. The following certificates of the class maturing in 1914 are in force; Monthiy Assessment Certificates in Force BO. 10 1.00 . 560 2200 | 1515 The net amount to be distributed is $136,620.60. Prepare a statement showing the amount of dividend due each certificate. Ref. 56@6.4 a ae eee en ee i. ct aw ae ba, - ities ep Se - J 7 ’ : . i. | } | bd ( , Py : My ee i. aos OLS . OU. MaTEOM | : ah os ee} (mo ttectmmmd «AeTeD oYeMp nottosiT yeerot woll OL Seesdotug eevod Saod t yemsooval end antasliO wef OL ;S\i«88 os eabmod RB egsgsiom : hopnoos) 20.f oo obcod RS agagérom text? yaReqMod re0T sal s(botedhiaenos ed of. . ty ) Se 4 a i ae ye i} ~naant sedi yiveqorg Srooet of eetasne Yiseesoen f $ etsqett ne ot¢atiftos? of bas seven Oned edt to estood edd ao enot io) 5 4 Pi re o i ANY a. }, mm | s£fS .OM ME2AORT | (nottentn axe eAets0 «¥.1) an Mey 7 ; eolotfiog saitka naged dotvelooess tuemeseres ovidarteqoso9 A ot nailed etedmen eft? ,asiq duomwobre isey Svit sis ao eOef af “eboiteq Hise to bao sit ts enfouse ons mt noiteqtotiueseq ot befstit e718 HLOL mk natigtam eselo eit to astacttisteo gatwolfLot of /. c | ' :9otoT at Uae goto at eetaoftisie) | | tremesonen vicitnol 1 oe ages | ee ghia Moss oud Smobivib to gnwonme ont gntvose tnometage & areqord a * * PROBLEM NO. 212. B06 (N.¥. C.P.A. Examination) On December 31, 1894, Smith, Jones & Company purchased $100,000 of the Swamptown & Northern Railroad Company's first mortgage 4-1/2% bonds for $103,394.43 flat. On June 30, 1896, one half of these bonds were sold for $52,418.55 flat. Prepare a statement showing the profit made from the sale of the bonds and the interest revenue for the two years ending December 31, 1896, assuming that the interest on the bonds in question was payable semi-annually, January and July 1, and that the price paid for the said bonds was such as to net the investor a nominal rate o* 4% per annum, 2% semi-annually. Also prepare an analysis of the Bond Account on the ledger as it would appear at the close of business December 31, 1896. Ref. 44-3. PROBLEM NO. 2135. (N.¥. CaP.A. Examination) An annuity of $3,600 @ 6% compound interest is to be paid in four equal quarterly payments. Furnish the annuity depreciation account with quarterly balances. Ref. 47-5, PROBLEM NO. 214. {N.z¥. C.P.A. Examination) A trust company assumes the reponsibility of a sinking fund on which it guarantees to pay 3% interest. The trustee receives $103,000 deposited to the credit of the sinking fund and on January 1, 1920, invests on a 3% basis in 100 Pike County Light, Heat and Power Company 5% $1,000 first mortgage gold bonds, due July 1, 1921, interest payable semi-annually. Prepare the accounts of the trust company, showing the invested amount and the amortization of the premiums at the several interest periods. Ref .52<2 ° 164 ( nottacnimaxs beendowsg yasqmod & somoG ,egins , C6L 4 fF teti? e'ymeqmod Ssotlioh avectsyou 4 wotgmANVe 9:!; etelt 88.912,883 ot Sloe oew ebnod ceeds io 1. to efee eit mort sbam trtorq ett gniwore snemetate & exaq aatbne etsey ows ont tot sumevey teotetat oft nt ehood edt no teoretal edt tearid antowees , 18 recimoos fsd3 San .f ylot baa ytavaslgyliennne«tioe eldeysq eaw me oiteeup Toteevat odd ten ot 2A rove eaw ehmod bine edt sot Steq ofiq oft +Vilsunne-inee SS murine oq RS to eter Ienimon sp tegbel oft mo tosoooA Sood old to eievinas as etagetq oafA 208L ,f& redmsoet enenteanmd To exols sit ta teeqgs bluow tt ea au x | oSedd «ton too % oe i] ' ; h a © ' r -EL9 0% MLIGONG (noltentrsx® »AnTed Yo) at Bisq sd of ef teetedné Basogmos R8 @ 000,£8 Yo witunne mA a. aolitatoetqed yttunnsa ett deters yt -einsmyse vitedasyp faypea wot ; | -aeoncled yiastisup détw tnvoses (moitantmexd '.A.9.9 Yet) Hast gaiinte s to ytilidtenoqe : edt cemvese Yasqmos teuxt A eoviooe: setevtt ofT .tsoretmt RE yaq of aeetnstecn 3k doistw sm 10 Bas bast yetinie sit lo tibero edt of botteoqeh 000, S0£ ane etdait yteved eid OOL af etend PE = no eteevak .OS@L f yisumst — ob ,ebaod Slog sgsattom gexlt 000,5e ba yesqaod towod bas deer - ‘4 -Vilrunneeimee ofdaynq teetetat .{SeLr .f ytot oft antwode .yntgmoo teutt oft to atavooor edd etagert | edt ta esmyvkmetq oft to molsasigtoms act Ors toioms beteevalt is fs Sa ie -2oofteq teetetnk {eiever ae, . DOL © I ¥ ae ei woe! me rrr Pe Tp an ae. PROBLEM NO. 215. 207 (N.Y. C.P.A- Examination) The Fairview Building and Loan Association, whose monthly dues were $1 per share, had three series of shares in force at the end of the third year; the number of shares in each series and the value per share were as follows: First series, 500 shares, value per share $38.87 second series, 600 shares, value per share Se Se | Third series, 400 shares, value per share 12.32 A fourth series of 500 shares was issued at the end of the third year. The net profits for the fourth year were $3,000 and the total profits for the four years were $5,325. . Frepare a statement showing the value of a share in each series at the end of the fourth year, and explain your method of precedure. Ref. 5206. 164 218.0". uszeor (noite tment wheT<9 a eititnon: geod ots aspokeaaend. Deir let, te Ootot ni eterhie to settee soids bed ,' sali Mose at acrtatla: by ‘odd ptsey £ } fot ‘en o1ew ouale 3 $3,008 ernde: ‘mec outev ~eousde a | VS.2S' stsde 19q. oulay ,eotcie O98. .29. SE. SE orncie bo euiey coe tnla: OOD ont to Sine ond os Séweee: esw eetarfa O0€ to sore a aoe i gs ah 000,25 exe eet dtagot ott tot etitorg ton Mu a8, 8g orew indy swot ons xo ed Hoxg fone wt weeds 0 Ro sataw eae gitwoce gaomatede s etmqott- ~bontem twoy mkefqxe bas yiney dgavot ant 20 hate. ods ts eeltes ,etubsostg To PROBLEM NO. 216. 208 (N.Y. C.P.A. Examination) Henry Smith of Boston anc Frederick Wilkins of San Francisco are to rencer accounts to ench other every six months, with interest calculated thereon at 6% (360 days to the year). At the end of the first six months, i.e. June 30, their business relations cease, and the balance due to either is to be paid 30 days there- after, with interest at 6%. The transactions between them were as follows: Smith had charged to Wilkins: Jan. 15 Acceptance, to pay Vilkins' debt to London bankers, Cys, Jar SIs PSH AWSS 0 0G 0 08 SG aides» ois ae eteee ote ebe 7,000 Feb. 10 Draft, favor of John Sloane é Co.,Boston due Feb. 28 400 Mar. 31 Cash to Wilkins for traveling expenses,. " Mar. 31 500 Apr. 12 Samuel Hardy, account collected,...... bie ee Mee. Sl 600 May 14 Net proceeds, account sales, consignment RROOCNCING 65 cas teeta sb bre ye o'sne» ose UPU AGE, 51.150, 000 Jurmelee Hotes, HIVOM, TIZONG » Lecce ceva bes ovess cae Me Ome. (Sl 1,500 $12,000 Wilkins had charged to Smith: Jan. 15 Proceeds,account s2les, consignment figs due Mar. 31 $ 2,000 Feb. 26 Cash, final, payment Om bonds,....c.deere- Feb. 2& 600 Mar, 31 Draft,reimbursement,traveling expenses,. " Apr. 15 500 Apr. 12 John Jones (bac a/c) one«half Int.in loss " Mar. 31 400 May 14 Note for one-fourth interest in tug boat, " Aug. 31 1,500 Jun. 28 Aeceptance in full settlement, account SPLOR WIS sy ASL ole ee Gls FCS ow ee ad SLO EARS OOD $12,000 Prepare an eccount current with interest, as rendered by either Henry Smith or Frederick /ilkins, and state separetely in alphabetic order the names of the ledger accounts complementary to the accounts of the respective items appearing in the account current: - e.g. if a note of the debtor were credited to his account, the complementary account would be bills receivable. Ref. Read. 164 oT A, gy Ri NE oe Sr i 2 808 hae 2S£8 OW ‘wevedest: | (aoks eater aAcT.90 * "A dtiw yeddoom xie yrove taddo doce of etam 0.5 oft tA .faney ad oF eyed O86) Ra ta mootors f selsolse 2meitsiot sesateud “fod? .0f om .o.t On xt -e7rodt eyeb O8 Bing od o¢ at tenAtte oF aud ed end. stew mont pest ertoitosennst ott e $s 38 :eatnfliw ot bonrtndo , beet gto yetovand eihcol of ddod ‘eaistit'! ‘ena ‘of room qagok ar ae 900. esse reereracrescreneeseseernaceaneasene lO ms es 88 .del eub nodeod,.09 3 onsof2 alot Yo rovat .tistd OL .der ooe te .tem 6") «4 eseneqne catlovett tot eablliv of desd f& .1tsi 005 «ss k@. eta” wsecseesedOd9al fon teyveoos ,yo1sH Loeums® SL .aqa | tneanmainnoo ,2eefse tauooos ,ebseno1¢ Fo SL yall 000,5 it +BUA " 6 Wha + 44554 w0 8's wee Om vee wag ee nae EGON reve weenereneneseens g MOK mort ,etoH 63 «out OOc.f ff. :it¢im@ od begusto bet ankiliy | 000.8 & £& .298l oy ent? gnommnicnos ,eofre tnyoone,ehesoord &{ mst 0023 Se .c3% " e#rrrevee eee , 2octod rede serearyeg {arck? pa 8s .deF ‘ ; 002 ef .taA ™ .,eseneqxe gotisvett ,.jnemosisdmiet, LS .0u oOb ~ £& .wem “ eeol mt. dal Blnd-emo (o\s Sed) sonot mot SL s1qA 004, £ fe .guh " yfsod gut at teoustat ddwol-eno 101 esol eto 2f£ ysii tnuoson ,tmomelitoe Lfut nk oon 900.7 lé int ° oinléin.a « ons Need seb esiee Dee BORO cealee O00, Sig asf) yi bowobaot en ,teorstnt Att taowmo tuyooos ma eteqgett nt yietessqee etete San ,entilhy’ aAstasherl to ad tne ymen vrorltio of yininemelqmoo etnyooos san bel eft to esmen ott sebro oftedarqis trsosos odd at gnistssqqs emett evitosqeet oft to etawosos odt. «tesooorn aid ot bettbero etew toddeb od to oton 8 Tt .9.9 = :dmeTiNO .ofdavisoet aeflid od biuow tayooos yistmomelgqmosa odt Eek te BOL iF 7 | hey a U Pe | bo Sed dee ae i PROBLEM NO. 217. B09 (N.Y. C.P.A. Examination) A syndicate: ovning in fee large tracts of timber land makes a contract with a lumber company to sell 1,000,000,000 feet of standing timber, at the rate of $3 per M feet. The lumber com- pany agrees to cut and pay for this timber within a period of six years, and guarantees that the following shall be the minimum amount to be cut and paid for in each of the six years, payments to be mace in cash at the end of each six months: Minimum Minimum annual gnueranteed payments When payable ist year,... 80,000,000 feet $ 240,000 June 30 $ 120,000 Dee. SL 120,000 end Weep {G00 7000 °% 270,000 June 30 135,000 DSey Si 135,000 ord Eee es LOO, 0G [O00 68 Lor 300 , 000 June 30 150,000 pec. 31 150,000 4th Po vas. 220,000,000 * 360,000 June 30 180,000 DEC. se 180, 000 oth Wa aa LOO, 000. 450,000 June 30 225,000 Dec. Sl 225,000 6th OPg.e UO OOO SOG. /% 600 , O00 June 30 300 , 000 Decs Sl 500,000 Total,.... 740,000,000 feet $2,220,000 $2,220,000 The syndicate cesiring to anticipate the payments under its contract, applies toe its bankers for tre cash value of the con-- tract, offering as s i £ ecu urity the contract itself and a mortgage on the timber land. What is tne areuens worth of the contract, calculated on a 6% basi | Refs Ise5, 164 08 _ = wis O04 usteost (noitenimexd thaLed eas Bese sexta bael rodi?t to etoant ogual eet al gat ae 16: to +9972 000,000,000, f L£f92 67 yoasqmos “sodanrl " anio9 rodmyf sa? '.#903 M teq 8 to ott Rey vas he to Bofrsg 2 nidtiw todmit efit tot yaa bas , mumiate: ofS ed ifacie antwollLot ert tad? Sebines ny Sts einemveg ,ctsey xic odt to dose at tot Sisq bas tuo ¢ sedtrom xie dose to ‘bre sit $2 sess ee feonnees mumic tt enmmbet " seidaysg cron ae r or ene ihe Os 600 .OS OF. srt. 2, OD tost wae “tS8¥ a O00. rey: nk .90C ei : ei a = 000,225 08 ome& 000,0TS " 000,000,0¢ ag. 06m bas 000.6 ié ,o9 te oo a a 900,084 02 sant 000 ,00& / @ 900,000,608 4... * bat O06 .0eL & .99d ; eae PF ah 600,081 08 onut 000.085 * 000,000,08f ..., " Ate 600. 28s 08 snut 000,082 * 000,000,088 secg" a6 000, ass fe .o90d - 7 yz Ce i a 000.008 5 ent 000,008 f 006,000,008 1.6, " We © 609,005 fe «oad : , ie ah sale 000, 028 S$ 200 Geta feet CO erent te, ct eti ohne esconvad end agectotias of) gaittess essotiaye of mn eo2 oft to sufsv meso ot¢ 10% eis insd edi oF eoticqgs ' tostt109 ~ aa mo 934ndi1em s base Theeaeti Fosatsuce scd png ee es gniselte ,joavwe eosttios eft to dtaow ¢rnozesy ect ef tadW .basf sodmis ait Fos,’ | | fetesd 20 s 10 hetafvols9 of aan nar +o & PROBLEM NO. 218. 210 {N.Y. C.P.A. Examination) Adams’ cf New York anc Lotimer of St Paul each maintain an account current with the other. Settlements to be mace semi- annually; by 30 Gey notes, inclucing interest on the account at 6%.. Their transactions for the six months ending June 30, 1910, were as follows: Adams charges Lotimer; . 1915 January 15, Acceptance Crawn by Lotmier,. Pebruary 10, Draft in favor of Hardens Woe. 2... > @ ait 5900} oe oe e 2 bend as o eis, Ls re } iv =f ee ot) 000. Ovs saan “obo ,abe, oe * “e* + ght oy “Seok ‘, eed | an *~ s z = sz <7" Te slapd), a tbe . beet os Oring ut I Ss 2 ie ueian ae me ‘ew Se ey F Bop bef aPe are ~veaGEetiut)} 000,008 tos? 000,060,00f ...,a9ey S4att DO OeL oe eget eter go Late Si. Aer yw Mie Fee 2 aw - , a7} , 4 mY é Sete: Hus = ae A 3 Bi joe e P a Re fat’ ran es > 00 ,OBT wee (OSs fit} O09. 005 toot 000,000,08L .., 188 “AtiO OS. O85 0g lGe 96. i2. eas he iy sk or ee petal We TT 9 ca FL set Sia Siies ~ : e ~~ 00 OVE, £2 QCG.¢ ovI. £3 tost= eee ined pore = ie Blaise ty o¥. j St map nnnind Pi ee a J oe _ Rea: As Se hae ke OF ee = os i, ee i a nape : inf ns 8 eee ite ry & peer an - “eth. “rotons etnemyag Sas etse io Tta8 a3 rete ee6 StH IETS: - ont? . Pile oe oe Po Py arts fis. a:fsy zlese é Lfnt: et 0 25 treet ott od, .2 rics se ) +o8% ae @ ‘art ao opsotiom s brs *feeti tastings ocly. ge insoge 2B. cael bad ~ ee =| o\ eee ~ ; . mm ~f[2> ,t5etTines ead To Mitow oases ‘ort et a oie pie if i Vetesaq XO 2 no’ B6Feivo - oe J “y\ ri Saeed 2205 Bs bol ace at F 7 A . ; om a 4 ak ate: a eye aes ¢ ae seeding Font 9 atk O00. A t ieee Io... 2 ares Fo nth = te pene fo 35% “eee aectinivo,, oF 555° een Og. 5% at if rf: 4 aE a af oF Tiedt eee a “x e ers Om ih AOR or —* a4 — oheninext oA. 203 “iy | : » i ee. 107 Yasgnes rodmyl 8 ditw efse —o 2 38¥tabo aaee ™o ete ertt. +s tae dis | 8. L65,3 - beawemoe elsiietaa wah 5 aa Miestociwas: - toode nettquyeno0 TIT *# acinidaos ,hssrameo shova eben yftred S8,55,5 efsicséas to renga 0Se50L,¢ _ sodsi to Bas fold of fae ,Sehnecrs vfewetverT eulsvy todel base elstreten teidtut Sac ots tesde aoftorSort VY.. © asuisv ~rintdmed ~tovbors Sortostnnacif ia g : ict¢ete: I6 om 4 xodef Yo one w~aib . stzogex siizetocstunsn r9¢ sh mo beds ‘ifes ,enotsietyupsr entgredo | -IIT bac YI anxe? | oer geedg fea). V *™ Tistenecers sores Hedeigtk® i QuiyriIso ,andoTegs> os alstusts”. tod=i 29 Sa6 ) fs00 f{[-tteten saz of? Tediiut 3mFbb" es todsel sat at Bre 926-8885 Drs BB. 608 f : af TroFost zi ; ort. {) bas 08. léagte +500 »Sonsfent doss x} "yLlevidoequen seac50x9 : | tsode nolticoqerc Iv Big 33. 993,4f bioe coir berleiatt I6 teoo Isto? j O8.cal SL fies esisa to ebssoort — | wsctost? mort 5 to gaos out Motseotiqge Istod erode asr1oyss qatuute-twaes: to =efetages sat “YS¢ ons Dar 15.060 OL, to tmyoms sat at soos of + at woorib > WOL-885,0L Yo tavous edt mt redef 20? out iinsaxe wrote eff SIs asvitoqet sait-tostuncy Vd hegtedosiéb eacitieinupss yind — ed? mt aiasocus of $idoz0 tot etsode soltquyencS eit no betel. Bee eibniaioaireris ae. o F - aria rake a? Pn dy 7s a O14 The medium for posting the charges and offsetting credits to manufacturing accounts and for posting the credits to materials accounts is the Consumption Journal. The mecium for posting the charges to finished wares accounts end the offsetting credits to manufacturing accounts is the Cost Journal. 3 All waterials, manufacturing and finished wares accounts carry units and price in eash specific. account, but only aggre- gates or controlling accounts are here dealt with. eet an bt Frame consumption Journal and Cost Journal entries. Show the subjects and amounts cf charges and credits to the several ledgers in the cost system, also the charges and credits to General Ledger Accounts from data developed by the Cost Records. Ref. 235-4 PROBLEM NO. 3238. (N.Y. C.P.A, Examination) A corporation's inventory on Jan. 2, 1909 was: Har aeri elepenck sae. MGR . TGECR, CAA. 4m 20°85 9,467.18 Gooas ar Process, es S S 2 Se HS a Oe CS SS 2 © 4 Be & 0 Se SS @ we Ce Se ee Se UA 4, Bisg.33 pa wee ww, (tha 2424}. . Gin Pe ROG Wane. FA he Ag I28t.8 18,673.18 Made up COTES SNCs teat Spee wate Relet eee a aes. cy arp is eee 6 eRe oe whe whe oo 19,753.47 The corporation suffered a fire loss on May 1, 1909; the in- terim transactions affecting merchandising, manufacturing and pliant were as follows: Parchases rat materials,.....-.....- ee a ors ce e's 46,375.82 POR GL Ve keh, Da. Cul vy esis «ase Sk Sw wae iectne 32,618.06 Manufacturing expensés,....... eee es AiG eee Pepe al Ma sai p ie tare ee 5,157.20 Bete) Shay FOO Sd OL TLS, et ae eee ek ween es : 400.00 EP EROON OCR on enn ain ww beng Rene ey ee eee ae ieee e 7,618.35 RN Se ADS ikiea's oe & tok + a ais 6% 6: pao vin we we es we wee . 360.22 Oy er NG orc aT i (als oie cu, ome oo mo ar a8 monte ne Bae a ee 2.561 sie ne eo a vw wo ww ote Sek Maat, 95,714.66 Allowances to customers,............ igre ee eat Ila 310.18 Re ee Se ea he aa wie de aie oe ey ew see 8 ; 2;2607.2a9 ae a te os a aT ENE nl in Of. G65. are Pes Ay ‘zwebay auwomes asioflog fis ineminue ek aaol etd eminfo beriteni edt bar seuefo sonarmeniod ies yreatidors ald to oulsv bas shoog etd to te0o omitg eff to RE\ Loe Yaedt is Setsauytis et mftalo :evoftfot es ro SST soxot a 008,852 Poach mc {00 085. foots ‘sathnsdovem —6f Sit to ouisy sit Werne ier ala | ae tatoos steqerT .SROo. 4 ‘ ~ “a 7 " 7 - 7 * ,4 » > ee a het ‘ _F Sof Py 7 elsizgets: of.aof, a a0.8f8.52 : 2§ 886, +22 ot TO 4 : ese aie. » 805. af rear. eho «2 Qk co. 008. ir 00.008.£ 00.002 .£ -eco lito & ~ 06.000 ,.£ 00 .0éE9 - 00,000 .. Py ee | | Sf. SIF oa Si. +fE, of 8f.STa@,8S fete nee eee Oe. afr. if $5.3987, ‘e: -O£.0aT Cf haces teen eee e (BOS SL.S74.[Sé £0. a0e. TLS Sf. S80. 582 eee eee oe eee 00. 27¢e é%.209,2 SeOLf,f sess + eg STONOFENS ot esonswol fa £S. Tar ,¢ Sf.30£,% 90. 5£5,8 Pre ae -,etamoteso to entusen 60. 204 &S.032 00.008 —— witrctreere+«qpeandougg, tasld “gatartged oeizosseval tssy to: OS.0f£5 o2 OS .0f6,f¢ e288 .e& -_* “ef eee west Si.9ST,¢ . Qf.TOL.€ SfL.8Ofyo os seweessone gSBO00T] at erat al .g&a, ef Gs ..506, Ti Or. €68,. 28 OF BD 0008 0h 4 we Rigs m 1 B5003 ron BL PSg.8L B8.250,3i Be. 858 T£ eepreererrerer reser oper) ait yd. Seyofque o1s yoy meoreq sat. gorkt edt to entt me oonfmvent to tayone oft sori? -beyorteob | atee ’ c-08 . teh Era § ’ - 216 PROBLEM NO. 2323. (N.Y. C.P.A. Examination) The Allen Automobile Co. assembles cars on orders only. The Sania is a synopsis of its factory activities for a given period peeamrorchaged x... gizo. You, nah. 1S. 20 ever. Cees ee mereco>, 000 Parts manufactured (material cost), ai. Roget. os eG4.508.% 225,000 Productive labor (125 per cent of materials) jue i<.s6% - 281,250 PaCLOrPuespenséis. 2e22 55. Lace. » Maes on Bs PES Sis . 451,300 Cost of cars: Pata pur oiamed pean aimed ps oe. COED. ke es - - 74. Sane 95 , 000 Parctovmanmitectured (materta’ coet) op ised.. 0. 0) 06... 75,000 Productive labor (145 per cent of material),......... ‘188,500 Pact Geese are 20a 8: sede ones... 22. o2 C2RS4 080% 2) 226, 200 Material on hand, unmanufactured, . Pee ae oer satiarde: 41% 200, 000 Create a technical trial balance of the cost ledger and an inventory of the stock room. : 164 000. roa e. ee ee 000, d&& | das, L383 003. f2p Meee sc ane ; ‘ i ol is a” * 090,~.¢¢ 000.2? eet hath gag Pleas >, ee aa a | oO8 Bat Lesag(tbizeten to pi ry ty” Ss a for Se Bas - EN sr See SHR 6 Seer 600,008 |... Tetreerer ss she pbometos Rumacaey me brs PROELEM NO, 324. ol? (N.Y. C.P.A. Examination) n January 1, 1914, The Arlington Company's records show the following condition of its accounts: Inventory of raw materials, $46,864.26; accrued factory pay- roll, applied and distributed, $2,495.34; goods in process at prime cost, $191,665.32; the further value of $34,111.51 for the Tactory overhead, also é36, 324.76 to cover superintendence; finished goods in stock show a total cost of $64,968.03. During the period from January 1 to December 3}, 1914, pure chases of raw materials amounted to $241,849.35; factory pay-. rolls, $377,381.70; superintendence, $114,300; factory expenses, including wages not applied to cost accounts, $74,538; interest paid on notes, $3,500; dividends received, $15,013. During the period mentioned, the operations in the factory ¢omprised: raw materials requisitioned for sonsumption, 239,461.08; wages applied and distributed to manufacturing cost, 7560,751.20; and to factoxy expenses, $17,878.17, included in the sum stated in the paragraph soove. There were also foywarded from the factory to the warehouse, finished goods at prime’cost, covering materials, $235,687.74, and labor, $355,001.25. The cost of goods sold during the year was $755,849.70, and the proceeds from goods sold, $907,019.64. On December 31, 1914, the goods in process included, in addition to prime cost, factory overhead amounting to $25,317.06, and superintendence, $38,035.98, and accrued factory pay-roll, applied and distributed, amounting to $3,743.01, | Show the cost controlling accounts as they would appear in the general ledger, their overation, and the resulting net profit. Ref. 37-6 164 “oss OV SOME rode abhzoost e tyme ymod notgailta ofT. .bf0L S yrseaet =O no to ‘nolf thane scivolle® oft Tia : : WS 7 & ‘ -yeq yrotoset Serrs99s -86 888.599 _aleizeten WSt to ‘grotaeval roa ts sssootg mi ehooy bE. SES 4S: peiudirterb bas betiaque ffeoz 4s xot [2-f12.38% to euler veditaut odt ;So.c00.f8f ase09 ealtd ~ . -gonebaotaizsgve xsvoo Of OF. BEE. SEy oeis ,psedteve YtOF9 see aes ¥6 ¢s00 Istot e rote foote ai Gg we os f vrarast mozt noize4 oat gatied one to ssesds ref .f£2 xedmeoec Tc > =eed yrovost -20.€28, £38. a¢ pegavoms slaiwetss Ter. a -OF. £38, ST E9 ,effox ,osanecxs ¥TQToSt -008,dI5¢ ,sonebnevaire we taototal 730d, 853 ,etauo0e8 seco of Hetiqae Tom, 8° pbs onS 2Bf0,els ,bevieost ebrebivib 7006,c> «8eton ao bisa yxotest edt mi anoitszsgo edt ,benoitaes Bofseq ed? gaitwa -.. moitgimenos sot bexoitiegupot eleizsten maz :dbsoitqse .ta0o yaimudostuase ot betydpztetb bas bot tay 4 260.£85 .2é6 mi bsbulomg ,VL.8T8.SLy ,Seenee® YUOTsS 50S.Le9,08 | .svods rpeteq ode at betate awe > wogete edt ot yrotost odt moyt pobteryot esis exe esedt a (bt. 989.086 .sisizeteu 3aétevoo .yeoo ‘saitg ts Bbhoom podatalt geoy od? saiztub bios aboog to #609 Sh BS. L00,2884 ,3008 ban aTD GL0, 808 «blo sbooy mogt BpSe0074 eid brs ,OT-Cb8.ae%8 Ber ai .bsbufomi seso0ry =f eboo; edt .bf0L .+% asdmeost sO. .BO.TLE, S89 OF naifavoas bsodieve gofost 4600 emkic of mortibbs — ~Llowyeq yrotest beurpoe SHE 4 {2.280 .8e3 _,somebactatsoys ‘bas -f0.685,86 of gabvavome sbotudiztels bas beliqgs sinicos an bifozta0o teoo sdt wods ~noitszege shoe topbet Iazones ott +8 be ae go¥8 ter at wegqqs biluew yodt ss tea gakviuect ecg bas pag ay) I oO PROBLEM NO. 325. (N.Y. C.P.A. Examination) The factory of an automobile company assembles its cars only on receipt of orders from the main office A summary of the factery operations for a certain period is as follows: PAPCG AOE BC OS OO 6 eee We cannon omar a .. $162,500 Parts manufactured (material cost), . Cota 563,500 Procuctive labor (125% of material),...... A 703,125 Oe I a de Ras alle ca Law ite py ey aes epee g0OO Cost of cars: Pat pe ete Ore CGE, bie ios 6c © dim och wine 137,500 Perte manttactnrea (material cost},..:..- 187,500 Procuetlive labor (145% of material),..... ..471,350 ae ie a a a ue, Alenia ees OOM a i oi cae Wk = “ 565 ,500 MaAvGrial on hand, -ummanutactured,.....-....++ 500,000 . Prepare a technical trial balance of the cost ledger and an inventory of the stock room. Ref. 40-4 PROBLEM NO. 63 (N.Y. G.P.A. Examination) A firm manufacturing cloaks, that was insured against burg-— lary, claims to have been robbed on the night of Sept. 10. The proof of loss, filed by the assured, Con kei nee two items; A, 600 Cloaks $138,000; B, silk, 1,000 yards, $1,500. On Jan. 1 an in- ventory had been taken of stock on hand consisting of cloaks, cloth and silk amounting to $118,500, the particulars of which were lost or destroyed. An analysis of the firm's booxs showed the follow ing: Purchases of spe 57,500 yards at a! Purchases of silk 10,009 yards at $2 6,000 cloaks were hamufactured consuming cloth 40,000 yards at yt silk 10,000 yards 3 9,000 cloaks were sold between Jan. 1 and Sept. 10 Goat of sales, per cloek, for material,.......i......- ue ie Cost of sales, per cloak, for labor and sundried,....... .7 $17 Invercereicess. 13, <¢,500 cloaks,...2.08.2..... Peer e Y: Lege hd VASES CLO Ag ee cna # Sow Farue: SGlixe ee wei 2 ‘ Prepare a report proving or disproving the claim. Ref. 43-3 164 Nis - ee. co, Sad © poe) re 7 fae nes : a 7 : es 1 ; y io fac) w | | 288 ON MEIGORT | (soittentmexd .A.¢.9 .¥on) gaits 6xs9 sii asidmeses yasqnoo of téomotus as to yrotost exT | 7 edd fo yYieumvs A .coitto atem edt mort egebzo to veteoss. #0 vino — :awolfot as at botieq alevies 6 10% emoitarego yrosost — Oe .s35f3 -* eo eee ae hae «+e ewe -»»- hesedozerg etistT * aos ee SOS | nas open (te0o Isizetan) borstes twas efcet’ of 2) Ss eee . tieiteden to }28I) redsI avitsudox¢ 000,886. £ «2.3: < + ae ite ee teen eeren SBMSQKE YROTOST , / 3@ms9 to fe00 QUE WEE) pba ee ee eee DsuyeNoo .sssiowrd efrs4 OOP gVOE . naive .ta00 fsiissex) detitostuasa at st Oss ITS > ......(Letretem to S255) rodel evidoubost 002, é32 ere ae ¢ wae Mee peeseu +g O9G29GX9 YIotssT 000.002 aed Pike ale Seintostucenmy .basd ao Leiressk. Sas tsgbol tsco edt to someled Isitt Isoiaitoet 2 eteqe ee ele DS at A |) a re y ; ; : = . J" ya ha & a” ers 4 eae (noitentmexd AFD an ~os $edo to moteya « gnitstoge polterom09 sabautos ae ts as moitorboty ct yatteles ~Stsb gaivollot edt etaseezs ,atayoo YS Yrotost ;58.SAS L&2 moorsrote +f afsirotem'mez 72Lel I. 1 (0C.533,f5 .syab 2 ,bieq ton tud betudiateih ban bsifqqe [for Yrosost .coisihhs at ;38.8V0 983 teoo peoata res ‘see00tg at sboog bedeintt ao. GEL hGe AOR inong whee Deachdzeve : | -€ Sie, EB aE toubord mae bredetqu08s tsey ody yoited asoitszezo Isis ooontt “oat :08.°8¢, 1686 eLLfor XSI yrovost Os. eta Q8r2 Letretsm ret: to osesco .Situeoss taoo o¢ betiqys toa es gnifvlomg ,scanesqxe yrotest - | | +008 « Ov, asenogxe Ineneganen 2803, 0R2 ~ efetretsm wer :Snodetqmoo anoitereqe sabwios dagm oat ; Ssilqas eeger ,90.085,c8L9 aoltqayesoo ze? anotiieivper so beveok ‘ ot bas 08. 008 0362 saiwdostvasm to teoo ot Detudixztelb bas edt ai Setsts ove odd gnthuloar ,8%. ef2,{15 asenoqxs yrotost } -igergersg gaibeos2q ts saoor oten oF ,Vrotost mort Serre tanest Eboor bedelalt ; .O8.998,988% sodsl Bas of. ca. TGI° aleiztetan jte02 omizg mi .bsbuloat asesorg at eboon sd¢ sesy sdt to seolo odd FA. iaomegenss .30.878.5£2 ssamagxus yrotsset .da0d emtmg oF molt ibbs naitevons eysb aet 20% [for YSq, Yrotost bas 82.e22.283 seaneqxe tox Saved? ~betrdiazteth bag bs tage asd ead fo Ltr 5-208,83 ot - ; Pa; 4p - of at ebdog bodeinti ot begredo Bsodrero to onetacorey edT ) -tesy ayolvety edt to sede sein cece -tsygbol $200 ont to atmroocos ont. fieteb ai exeqort oo a ; S-3) 208 - dal i ; PROBLEM NO. 228. 220. (N.Y. C.P.A. Examination) he books of a manufacturing concern, operating under a system of cost accounts, show the following conditions og the opening of the fiscal year: raw materials in stroeroom $15,621.42; factory pay soll applied and distributed but not nse Pas days (Gaim? B: partly manufactured goods, at prime cost, $63,888.44, and the further value of $8,037.17, to cover factory burden, also $128,074.92 to cover ideas ment charges; finished wares in Stock at total cost of $21,656,01. The financial operations Maks the ensuing year include: ine a of raw material $80,416.45; factory pay rolls : 125,793.90; factory expense, including wages not applied to cos i cpuntieas pot ,845;3 management expenses 58, » 100; interest paid on loans $1,200; income from investments &5, 004. The manufacturing operations during the same year compre- hended: raw materials issued on requisition for consumption 279,820.34; wag ges, applied and sshd iach ion to manufacturing cost ~130,250.40 and to factory expenses $5,959.59 included in the Sum stated in preceding paragraph. Finished goods transferred from factory to warerooms, at prime cost, covering materials 78,543.58 and labor $118, 333.75. The trading operations during the same year comprehend: cost of goods sold $351,949. 90; proceeds from goods sold $302,339.88. At the close of the year the partly completed soods included, in addition to prime cost, the further elements of value to cover factory and management expenses in the amounts respectively of $8,439.02 and A135, 678.66 and the factory Day roll for three days, amounting to $1,347.67 which has been applied and: distributed, though not due till the close of the current work. The basis of the appor Paneer of On Cost or Overhead Charges was as follows: Tachory expense 20% to mat erials and 80% to labor; management expenses 30% to materials and 70% to labor. The transactions of the previous year in round amounts were used in calculating the current year's apportionments, viz.: materials $75,000; labor $115, 000; factory expense $34,000; management expense $36,000. Open the general ledger accounts that control the cost ac— counts; show the Operation of each and the net profits resulting; also calculate the percentage to be added to each Dl or material and of labor to give the total cost. - Ref. 45-1 164 Oss .888 .OF MEIGORT re s thay nattereqo .mreomde gniwtcstunsa 6 to eftood sxP ort te scottibaoo natveffot edt vote ,etmimoose toe0 to moveye :$5,168,cf£> moorsosts ai eisirsisa wet They fseet? env to Caner : oyeb & ,bteq ton tud Betudiztelb Sas betfaqs ffex Yeq yrocos .o}.583, 609 .fe00 satigq #4 yeboo bogudos tunes yiirsed et. £583 cobtud yrotoet tevoo ot .TL.960,82 to owley sediusi sag =<1e nt ociey bedainit jeontado gmeneganam teveo of 82.270, e5% cals £0,829, £83 to tano fatfos se doote :shrfont te9ey Rakvene sft aniayb eaneiteteqo Istonsait edt 9 9 elfor ysq yrotost ¢h.9f8,089 Lettetes ret to agestom teoo of beriqus tom sozew anibyloni ,eamoys yrovost (O8-te7T,. cole © bisq teetetai ;00L,802 seeneqxs Faemogsnsem (666,25) .SPnOOOS .$00,.@3 staoutesvai mort enooalt 2008 ,i¢ amsol m0 —S1ymoo msey omss St yaliwh ancitsteqe satutostiaem set soisqorenxoo rot noigisiupes ao beusat efleinroetsa vst :bebrod teoo nankurtostuma: o¢ betudintelS fas bolfqgqs: casger 6.088 CV y edi at bebrrfoni: 2C.028,29 seene yee yaotest o¢ bas $2 .0ag,0824 | | ,fastesreg gaibesery at Setste mye _te ,amooretor ot ytotost moti berretensit aboos bodelakt .a0.S88,8L52 saodel bas 8@.$0,8T> alstistsa sakasvoo ,te0o smitq co :bacdexqmoo te9y ouce edt grityd ancitsizsqo spinsi oaT .88.G5E,S0¢¢ blos aboog mozt ebessorq (0S. CBE, fea, Hioe shoes to bobuloat choop betefymoo. yl[tisq att xresy sdt to seolo Sav 7A sovoo of oxfsay to sfnom|els tedtust edt ,teoo smixag of moidibbe at to yfovitosdqest etaveas edi ci seaeneqxe taomezsaem Dae yrotost .aveb sordt rot Ifor yeq vrotest ed? bas 68.878 ,.cf) bas G0. 60), 8% betudicterh bee Betiqgs aesd sad doldw To. Thc ,.[2 oF naftavoas .ixow tmetivo ont to seofo edt Ifit sub tom dgwody senisd bsedxrsv0 to ta09 29 to ¢asstoit eldsyeq mi oprivintric off tet sc ktaroces jrenstets 6 es noidioy tear etn0o bas etelZeb ot aubwode bas 2 noidtoa tote bos eofse boagetoeb oF esrb ek Op gansqxe bas ¢soo at anotteliev, fsveves edd. . fa we is, i, a me . e ° i : F cser Laet ¢ noc - ec& cas : ood ,OSk a Ld. tae ee Li. ae ; 27.9858 ,.80i . .008.8F wae nw cannnnngodsl gooTid - pathy _ . Sve , z - cay ‘ 3 bof wom ame ZOCaL toszzbal ié . a aid . -CCO,35 .. -GOe Te a+ -+-==698Sjxe YrososT - PS 62. TSE ,98 - 002,05 ~aw---suseiiegas gatbeiD O2. 385. ££ 002,0f . —an-+-- mb wot Ae ee “se 2 © woidsysy Bie €4 Bere We ie re ) 900.06 o ose Ve oe b.4 ee 0 Oe se astot - alk ) fx} © eee sews evpvnon eee 0 & 2Ldsyss eozegizol : vy ae ri COO sas a ee ee eee ee ef aovtsde bexit P sedsl mcel ac bEsc SINLEMS SE9oRe ae kOesST Fad berguooo @b.eff.b) t6 sacneeolezss bas Peds asi itejem to esol a assy stedd. 2 og actitavoms eroizerd oxkate: -230,€ eter bedatinnosos sarod moot. _oritoubors fotos edt te «mo itoubore fcurcn saT? .COSE exer ae etyod mimbasa 9 seol Lfeuses. ao tns0 r9q ovit _FhreOe gat? ed Siro a -bleq ed of cela ser ae (Scititae of rsitoriwman edt teste aici fiaetates a PROBLEM NO. 233. 2284 (N.Y. C.P.A. Examination) John. Brown lost his stock of merchandise May aM 1921, through flood in ced Mississippi River. to the local Mutual Flood Insurance Society claiming a ioss of $5,886.35 on merchandise moe oT P ollowing data ascertain his merchandise in- Stock. From the ventory: Neti protite, May 1, 1927, $4,452.91; drawings $1,598; legal expenses €17. 50; interest debit 6313; advertising 834; commissions debit ®961.01; insurance $196. 23; sales $81,688.04; inventory December 1918, $1,568. 88; purchases $55,415.82; labor productive Sig, 4993. a teleph 10one £4056. 06; sundry factory ex- penses 3,201. 52; repairs $16; surplus May LASSI. 3 2 6540915. Ref. 52-5 164 .€ES .O wac507S { no ttonimext AD wt reer .f yen osibnsdotea to joote. ‘eid tov fyuleotecll & oe ytoine® soxeivedat Boolt isutiil ‘Tevet. odd ot bs. satbasdioren mo 2¢-085.2¢ te seel B oat ete wit scibascoren eid mietreces ated gwen: edt a - +) <3e2 , I cuntwerb ,f¢.825, ag .isec | et yah ais . alg antetizevbs vELE: gideb toorstas oe ? ae ny ; 130.886, [8¢ aglee (68.30f0 sonetuesi 19.252) “tide: emoL godel ;95-2f5,d2% seeadoueg 48¢.8ec, rk vate | i “x9 YIctost yrdave (dO. aps” enoniqelad ats ef, Sic .£¢.848,32 ,f£S0f .1 yau woven Fea) a: pep eet 35e-L0 Sof MUNICIPAL ACCOUNTING PROBLEM NO. 334. (N.Y. C.P.A. Examination) lage levies a tax for general purposes and through the icials collects the amounts and disburses the funds The Consummers' Electric Light & Power Company located in the village furnishes light and power for public and private purposes. State the particular class or division of accounting of which each of the foregoing cases is a type. Contrast the books and accounts kept by the village officials and the lighting corporation as to (a) purpose in keeping, (b) advantage in keeping, (c) facts sought to be shown. Rule a page (or folio) of each principal book of original entry and make at least two sample entries in each such book. 164 LA as ent Myyotds bite wwq Lexs. | BBawt edt Soazdaln Bae mm &i Boteool baci tevod - eeetes ae ois tO toroq 7 sizctot?to apse odt yd tqex eee tab Ac) symkqeed at saoqruq (s)-o¢ se cotieeces ogres yatt _eftfvoda od of taguos etosi (0) sBtiqesd ei couane ‘Gece arer to tood feqticnizq doses to (ottox to) eS - &. eft ad stood dome dosa ai aeiza0 efqass nee te evan bas yitas | ° 5 OD PROBLEM NO. 235. 32 (N.Y. C.P.A. Examination) Nassau county undertakes two public improvements, viz. a road estimated to cost $50,000 and a sewer estimated to cost $40,000. The work is to be paid for out of proceeds of county bonds failing due at various dates and redeemable from assessments levied. against property presumably benefited, to the amount of the actual cost of the work and incidental charges when these are determined. 7 a premium of of the two respectively Bonds to the above amounts are sold realizin i per cent which is added to the funds. The cost undertakings when completed is $50,000 and $40,50 for which assessments are levied, o e) Assessments are collected as follows for roads $30,800, with interest of $1,310; for sewers $29, 100, with interest of $1,250. The interest in each case goes to the funds. Road bonds par value $20,000 and sewer bonds par value - $15,000 mature and are redeemed. Prepare a statement of the transactions from which the status of the county debt, as well as of the funds and assess- ments at the conciusion of the above transaction, could be ascertained. Ref. 51-5 - "ae On aICORS (an ftantokes aie £5 ta) £ .Siv ,atmemevorqmi: oliduq owt oe teop ot botamites reveals bas 000 abaod ytnveo io ehssoorg te. oy vo ot BE aimoaensses moxt sidamsobet 78% to totome edt of fot i toned eidemmaaze Reet tentage be seed asidz aggusdo shade Tansee bas | fate end te te0e isytos oat to gurimerq s atistive: bloe ote sifcoms svods eae oF ‘ene caer ord sdt to teoo ed? .absast odd ot bebbs et dotir tms0 oq nievesnteas O62, 028 bus 006,06) et betefqmoo nei cuaiinsrobay ' \betvel ats simemsesses dois saad O08 .08$ ebsor tot :arolflot as botosfloo ons adirontusded Tae Fe "<2 fsqrotai déiw ,00S,863 areves tot gOLE,IS to: serge siz vabavt odd of gocg s6s0 dose ni taszegat saT .088 oulev asq abmod terse bas 000. rd eirtew req shacd Bsof — -bonesbei 91s bas eiutem 000,858 sdt dotdw~ mozt cae heweamuea efi to tnemetsie s eats wo89968 Drs Berut oid to se Ifer as .sdeb awoo eft To eutate a _ od Blyoo smo ifoseneit evocs edt toe sate inane hy = ts atasa bonist19086 al @er@ + tof PUBLIC UTILITIES ACCOUNTING. oot PROBLEM NO. 236 (NeYs CePeA. Examination) From the following trial balance of a small railway company, make up a condensed balance sheet, an income account and a pro- fit and loss account: Ott be. se O6 oe CORMOTs +6 6% fais 2 Pry Ra (ae Re . oaks 2SS000.00 SA he ee ee OPPO . oy x oes so sin rece (hl wih ateieee oO ot 142,200.00 Pepa aeRO Serer OPS. SCI) sce.» + «osieiewh tele ste 5,450.00 ARR oe DOIN S tS 5 obit fy ida hic doh ay oP RUGIS% 1, d02,000.00 Cost cf road and equipment,....... $2,659,252.32. REL Steep 6 hah UA te iniw eo) a sek ee 6 eo 8s 8 2,452.56 Hahn VAL Gee o's 4 xe > « oaiele aleke phates « 20,621.86 POCO Ss DSN A 1D Cgicwinis «00 a2 50s as ss 6,531.78 ARCDL Sau CONOUCTON ST, <<< ebb soa 1,708.80 individuals and companies,..es.eeee 6T,UETecs Foreign companies’ mileage,....... Ofc Foreign companies’ tickets,....... 196,36 Usoet «Oss COPAriment,...... cugnecmes 771.54 BLANK LEGRDPESS, COMPANY, «+ « + sie seis 4 916.36 Agents' drafts on treasurer,...... 145.94 Prepaid advances for cther lines,. Chalo BECK CHAPRCS gab eames sen ess in tei; a 18.56 OVErcnarges GH APGLEDE sy eecccrsess : 19.84 Gite .oace DSlSmice,.. ...- 4% oe 99.88 Scuthwestern railway company,....e. 754.90 Barnings, PASSENBEL,«scccresscaeee 8,155.84 CS hr aii A ward ey Pe eee ae rea 11,386.78 BaP AO 5 eMAt hy wee so pes ews eel « 1,546.96 Earnings, CXPPESSzecsrecnsccsseses 5,494.52 . OpEFaLiIng EXPENSES, o osc esse Her saws 20s! tleiD Interline freight account accrued. 04 Ci Interline ticket acccunt accrued,. 3999.76 PARC S sab dp ee Ce wine Midiiid's, ola sxe bois 050% 1,184.00 SRCCTEST,- Cll DORIS ss a's = aa «ela eRe) 111,000.00 PELCrGav An OVsCOun ts « «ssa 5 v0 «'s0'% 194.78 itsurance paicd in advance, ...ss<- ica. Jo eee ea? GSN VANCE ogy 6 e060 ss oe Selous a Bee eae LOSS, 5 ee we «00 6 wa 8is © Fie nie 20,013.78 Coupons due and unpaid,....... aes te 68 ,0028.00 TOLA) sacs nas eeeemeer. $2,600,681.26 $2,820;,661.26 Ref. 5-3. 164 ‘ ae . fe Ss Lou TTMUOIOA earruatau oxaav3 a ae 5 0@S JON MAIGORE (wo bYenEMaR, 2 8509 Yall se : | SCAEGUOO qawliet {sm 8° to oomatadl fsixd gatvotiey . 2 peag, # bas tavoocs oaocnt me Baier: eouslad & ~ 00,000. g2£ , [4 Te tee ry Behe ee loose: ; 00.009 ,Sdi o* veer t eee et awe serene es ge UOTTSIIIG ixaoge a5 paced ~ f ; O00. Oda, SG ov eae een eeees roses pq GlI98 Speen sHaote fad or ae ‘Ee ae 00 000,850, . Pai. s.9ie'd Sala nly of oer phe ee ee ogsgosom te: ? i ; 54308 822 45% seeeee guNemgiupse Sre 580% to teod BGS a. mITTCTeTT Tritt re ee a 66.[25,.08 eee ee eee “ BY .L52 29 crceereeroccacecegSldBysy esmVosoA “" 08,807 ,f vaseesescece gS IOTONDNOD bas beled ' : ‘a BS .TRL.7S i a ee epei meer H0 ws ie erence oes) | Sia VS i a ++ 4+e 00 @ BRED. ol ‘a9. MATOS Biers Gf. SCL | sov-saeghtOdol? *eoeineanoo agietot 4 . $6. £7" uae tt eeeeee ress gdiromiimegeb «eT 62.0 ) 3¢.3fe sesessvecens @ ENRGUOS seotgxe aaele @.daf Aa aie oeseesgtotvenstt no etisth ‘esmoga ~ > »,e0nifL isdto 101 eeoausyvbs Bi ve ec.8f : or eeeeseeee e+: cunmn og BORTRNS = : b6.°0£ eoeescenceosqgtMDkOtn pag doasre Sere BE .e2-- ersevesesess+-e90neiad epsal ign 189" oe, 257. | osev eg Yaagmoo yewliat AS FROWUTGOS_ £5.201.8 ots ccecseveces eg T9QMOZesg .eaninrad BY .885 L£1 ene e ees oewce eee SORLON? ,endinred 6© dis, crest eseescoeerosee ghia gegriniss BO POD .E Ee ae Cor eeerseess see eg BBOIGKEs -sRcintsd . OL. f£T7,0S ee eee ecco ness go gS 92NSGKS salisregod | SB -Soyttooe samesos Sogtextt onkitesal ay .cee + Sot209 Jnusges toxvots samad nie | | OO .P61L, f Ctr te anes ecewrecesewsneese eg 7 OO e000, ere: 6 eter wecceme sense @ BOE nie 4 2 BT FL: ot sess Ct 56 ame PTUS OD i6 bas Be .ESf ver sewee SOASVDS af Sieg 02 .EgS,8 tees ee es eae e DOF svir ; ; BY ..C£0,08 90's saiblees +aeeeuea Geek Dee tito 3 4 00.600. 82 can aves Peed eg enter Daa Saar . 98.{85,053,S2 3$..169,088.8% 1 t+ was Ce aia RS Sareea cere cemeeeeeree ae 7 : F ae a | sar PROBLEM NO, 257. 228 (N.Y. C.P.A, Examination) From the following trial balance taken after closing the general ledger of a railway company June 30, 1910, and frem the notations fcund below, prepare a general balance sheet that will meet the requirements of the Interstate Commerce Commission: Cash deposited at interest $100,000 Cash deposited not at in- ROVER Ge mien s wae sees ss 55,000 | ovate nlc riz 1 9h) eye ee 5,000 th Fo ekie holen casks bolt perry See een 10, 000 Agents' and conductors be py lel oe as Re eae 50,000 SYaviic mand, car service DO SANGEH les mn dese calle e tS). Srey OOU Other acc'ts receivable,.. 22,000 RUPE OCIIGIL S galels ss. 2.0 =. rele. PaO LIOO TMSUPSNCS TU peice wes ese oo Sage 81 ® Deposits to insure per- formance cf ccntracts,.. 50,000 Road and equipment,....(3)15,000, 000 Other real estate,.«.-.(4) 1,000,000 Materials and supplies,... 325,000 Accrued interest and Poot ete aesiiievare uence 200,800 Discount cn bonded indebt- STi S@ sah) Pee ee ar, ee a ee . 52, 000 Equipment trust certifi- ee in ite oe emia Gen, 65 , 000 Equipment trust certifi- CACES BIB SUeCC, wa weve ee Lge »V00 General mcrtgage bonds un- PSSUCT, oe wwe we ss rg bs 8 8 E oF Capital stcck unissued, °e¢0 0 8 SPNON ois od wee sa ee afalel dt g claims in precess of col- RD BLE ciyiat «> a pels ers 6-22 eso 20 0G Cagh and securities in re- demption fund,....+.+.- » 600, 000 S22,403 , 800 (1) Advanced to general and special agents, officers employees, for expenses. (2) Stocks of steamship and transportation lines not Loans payable,......$400,000 Traffic and car service balances,. Audited vouchers MUDALO DG uwats sarees) 277 OOOO 171,400 Wages unpaid,....... 85,000 Interest & Rents BOE PNG. Gata eis va) Ody Ou Other acec'ts payabdle 79,800 TAXES BCCYUCH, cs00.5 «0,000 Capital stcck authcr auized preferrcd,...3000,000 Capital stock author- ized, common,.....%000,000 General mortgage bonds authorized, .5000,000 Equipment trust cer- tificates authcr- Re ct te Missle ois sa tL gO) Reserve for deprecia- depreciation road and equipment,....4000,000 Reserve for general mortgage bonds,... 600,000 Reserve for claims and injuries,..... 60,000 Reserve for contin- PONCL SS, «wee sees ss 40,000 Prorit and loss FUC OI UGs aes +e cde he dee youu 622,403, 800 ses Prenat Habeas ‘ a ance in the system: pledged to secure loans payable $650,000; unpledged $300,000. 164 Sasi TES on wsad093 | (noitsatmaxd hed 9 telly aed aodecl> codte nated oonsisd Istat | OHS cot? Bae ,CLOL 08 ent YRBGMOD yavitet 2 fliw gec3 isos.% o>asied Catenes & mipmap os ‘aoiesinwd sonsamod otstetedat odd To eaneareaias 22? ect Jesm 000 ,00h).......ofdayeq eased. teo bas SittstT OOS, Ivf .,2sonsied sofvroe 2etsrfosov bagibrra - 00,288 ete e tem ees - -biaqrus Bee CG > sae eeu +, Disqmy zegaW sine S seetotal é: Per eel peesesens +g DONTOOR eveee sg DSUI00m aoxet sogus Hoote Latiosd O0C ,OO0E..., 5ortetegs besive | toitse Meese {stigsd 000 0007. «see qtoams bosi sacniiom IsteneD 000 000s. ,besiterjus ebrod -%S59 Stews Ineouqinps “loritue gotsoitst OOO IOUS 5.66 Sieben ssn gbOee “Si99%qG95 Yo?t ovreaeeh | Heer suidsiosirceb 900 .OOSS ..«setaomgigpe bas: Listens: tt sviToe sn 000,008 +. 8hmod sasaicen emisal> rand evisesn JOO,06 sees sp 28ftut ak Bas enitans wt svapech errerveseeo sn gee ton eeoL Sus tEo1g 003.5 OS + #8 +s 000,05 GOS eat COe oes Soe — exeoitto ,etinese Istoege Saas. terends od Beenie aries | oct at gon conte solssstogeneyt Sne qitemsete to e093, i ae bagbelgas 000,028 sidaysg saao. erase of . iq :otey AN D08,.c° efdsyaq es 9on! toxido. cx a 000,86 sce eseassee eer egeeSHog — ‘aang pio 000 001g teotetai ts see 2 . eak te toa Podieogas, 3 900,22 eek ee ee eae wee wenes ee Fe i a °S 4 000,8L (S).....0-4. ent saitsow q O00, 0L:- seca steep SEeNe Be eee ; | erotoubroo Sns 'storepa 000 ,0& weer eevsionee cage oOneisd eoivice 199 base olftiarT £ 600 , Svs sceessesnersesegcoommiad Be GCO,SS- ..,osldsvisoet eF's08 senso 4 OG0,08€ (S).s.s...-cesetnomieseni 4 900,29. ina 5 ae ee sonstvent , tS5q owent of esteogsd G00,,0& ‘ etoneenee to soanerrot —. y 000 ,OCOZL£(E).eee,Snomeivpe bre Beek = | ' 000, COOL ()).....,.9¢ade0 Iso1 Teds0 f (060, S8¢ ++ eee otiqque Sas elsitsisi | ie 5ne seoistnl Soutook 068 ,08Lf er teestpoeces ces elLBSaet “sJo5nt Sebaod no tnvose td witigiss teats Jasmaiopg . 0CO, 3a (3) .. + hea wen eeee Fy, bin eitisziss seuss: srromg isd O00" Ges, ts *2te2@ © 03 ooves tray 2389 ems 2Snod sseottom [s1eged 000 WB ds sadeegs te ee ae «Meier Brus xoode iatigqad | ‘ . O00, 900 cfs sh tea th heen | ‘efgo to e2990%q 7: emisio 000..05 EE ee et ee I hee ; Ls Ot BE B6ETincose bas of 900,000: Ohi hie ie akan -neensqxne iol , SSL Rag | (3) Prior to June 30, 1967: road $9,000,000; equipment $3,000,000. Subsequent to June 30, 1907: road $1,800,000; equipment $800,000; general expenditures $400,000. (4) Not used in operaticn of the road. (5) Deposited with trustee pending delivery to the railway of that portion of the equipment for which the proceeds cf these certificates are to pay. (6) Created by charges to operating expenses. Ref. 48-1. 164 "phen sake :000,009, e2 baot oer. 2060 .008, es beot STOCL ,Oo emul. of .000 0082 2 east therogxe Is pact. -ef3 Yo molten ot yaovifeb aniiaed gatentt i oid dofsw tot bet 53 ssguedo ae MISCELLANZOUS PROBLEMS. 250 PROBLEM NO. 238 (From Examination Given by the American Institute cf Accountants. ) A machine costing $81.00 is estimated to have a life of four years, with a residual valve of $16.00. Prepare a statement showing the annual charge for depreciation according to each of the following methods: (a) Straight line (b) Constant percentage cf diminishing value. (c) Annuity method. (For convenience in arithmetical calculation assume the rate cf interest to be 10%). Discuss the significance cf each of the methods. PROBLEM NO. 239 (Nev. CaP. A. Examination) Prepare a ruling for a consignment stock ledger, to provide for the following: (a) entry of consignment invoice inward, containing three distinct lots cf goods, (b) resume of account sales, showing gross proceeds, usual charges, and net proceeds, (c) disposition of gcods to various prushasers, stating terms, quantities, and values sold, (d) subsequent return of gocds, brokerages, cartages, allowances and discounts, breakages, ete. for value and quantity as applied tc each sale, (e) date and folic columns referring tc cther bouks from which each entry is made. Make sample cntries. Ref. 2-5. 164 to ojudtiseal nsobten ett yds : sn iris: J - td 2 (ebaasavooeh bee iis iz ‘etil a sven of Sotamises ot 00.45 Bud anh: 2 o%ageri .00.af¢ to auisv icaeeee ft iw amibtosos noiselosigo® tot epuado Launas srit | a orie rebodtem gatwolfot ond omit dgtende e. ouley secbse toto Lo opedasoreq tnegencd (d) ; hare) ehodteom Wthunna (9) : ae. om ari 2euees notialsoflso feotvonritias art eonelnernos POT} is - (S0L od o¢ teoTstnt to otat seboriton edt to riozo to soneoftingte ods ‘eeuoz ld 25S .OM “SLIGO TT (no kd amas ods Le Tad o¥ Ht) ot .tephel #0088 gromnytanzs £ 10% antiva s- ee - ootfovel tnemrgtedos to yttas (2} :antwolfot edit a0 aaivenie a emreot (d) .e5o0R Yo atol soniteiS sends palate bee. eDtawn1t hae ,2episro [eve ,ebessot 22 gaiworig .sefse tnyooos Pest . -etecsnentg exoltav oF 2bhoog to moltieoqeth (9) a Sxevpeedue (6) 4Bfoe eauLsv Po e29isijosup eatavooe tS Bra eoomewalis ads mott Sevieoet mood Bad 25005 sit ~revewod ,eatiasem edt at ~toolloo yrsanoo qidemeete edt Ye hebaswtot Ons .-H 3 Hel ee teh : % ; .roksoovion ocd oxfam o¢ efdiseoqmi saw $i See ; i -: aa: Pai (ia oe 4 escthsil to ILid Hblaqei¢ eds pebtrewrot .00 3 awotd .f mori liw a. : ateient ondw ,soantenoo eff oF ,.eemoL . tt moti seviscoes veds doidw © Sat | -emse eft ie moitsesoi eit ao he - = rs onivig ,belbasd ed biuorce moktosensts efvs wot yifwt atsigxd scotteyv of? ot ecottoeties sit (fs doidw ni qonnam one {tetehb at . ets davowist meitosensit eft gafosts ,958m od | a fers aottio e'totioye oft .teemtaeqes misio ocd witegs gatvevilem aft to motsosifoo ert gattevos oais bas ,.insas gabsiswiot sf noteos te teas Letotermos edt moti yrsquco wegot? eis yd yenom | oud Let. ; ; an 2 c . ') -See _ A ; to Sat PROBLEM NO. 242. B09 (N,Y. C.P.A. Examination) The New York steamship company issued income debentures for $500,000, the ceed of trust providing that an amount equal to 5% of the total issue be set aside out of the earnings of the company echevyear "ror the retirement of the bonds. December 31, 1900, the assets or the company amounted to $1,200,000, the capital stock to $500,000, other liabilities 4700, 000, profits for the year $70,000. The company received $30,000 from the government for trans- portation of troovs Curing time of war, which amount did not appear on the books as an asset, the cost of transporting the troops having been charged to profit and lossarcount in prior years. Explain by journal entries (a) how the recemption fund for the retirement of the income debentures should be treated, (bd) how the income of $350,000 for transvortation should be treated in orcer to show its availability for cistribution among the cebenture holcers, without interfering with a correct showing of the earnings of the company. Ref. 11=4 « = _t0% eemtetrecsh smoont Seveet ergo | | > troY : @ od Lerpe cnvoms ws ¢ett gntotvowg tert | ptr % ons if = eit To Santis edit to two o5tes tee Sd St agC . +e hod sit 20 ‘sagmonk set et at : oie ot bedatons Yrsqaioo ent ‘lo eseeen ostt 00er ae | * 2 petdtftdeil vrerdto 000, 0088 of foote LIstiqso. ectd 5 OP 008 | ae 2090,0 OFF ts8y erlt tot Blea 080,09 : -enatt sol sromaveves; oft mort 000,088 bovteoot wescci0o ont | gon 5th tayoms doftw ,.1ww To omit antiyd ecoott lo mottestoq ait antitocensyt to Seoo od .oseee ms Sh exood edt mo sseqqs Hcgaie. nt SeMISSNs 2e0L ioe th tor oF spe heros wood Esai ; ¢o3 Bawt moitameder eft wor (s) ebiaien aan: e aielga a (dd) .betsont od Sluorfe eonstnedeh emoont oft te F oad hotsert of SLyoce aotisduocensts Tot 000,08% to emoonk ont wok ais erome mottudtssei® tot wtilidstiave asf wore ot aweht0o ak -_ gaiwore toerI99 r] tid iw gnixettetat guodtiw ,.219' oe -yneqmoo eid ‘Io sgsinise ont to PROBLEM NO. 245. 304 (N.Y. C-P.A. Examination) A certain firm decides to transfer its business to a core poration and wishes to have its annual net earning capacity based on the results of the three years ending December 31, 1901. The firm prepares a statement from its books as set forth below and calls in a certified public accountant to verify it. On examina- tion the accountant finds the statement correct according to the books, but in his opinion the amount charged for cepreciation is insufficient by $2,000 a year. PROFIT AND LOSS ACCOUNT FOR THREE YEARS DY, 18°99 1900 1901 Salaries and commission,....-.,-...2+ $45,327 $ 47,395 $ 51,294 Wages (other than manufacturing),..-. 5 a ede, 6,824 7,241 PRCEe a ee a Mt Mist ee win sivic aia a win sae we Dee rata 10,000 10, Q00 11500 pee 3 Egy apg he gig tee a Neer ee PD Wes reno, 2,500 2,450 Pes CT ee Feo wo n'e a 0rd a enh ont ele vad elas 1,200 1,500 1,575 Travelers, eid OF gat d10098 FoSTIOS drsmetste ont efit agra ai okt skoox: 2> tot hestadeo Inuome eft aolytqo ett PRASY ERT 0% THUODA 2201 ‘QWa TITORS # Hors. -TS8y & 000, Se YS “Soetontts yh Ooel . evel . Pa | 4 a, fé 4 aes. T> = Tao. ab e vc ccvescees ee fo tee bamoo eee’ seneeeee } recy 588.6. - styY,2 wenn g (abtudos tues matt tercite) ype ooe ff 000,0L 900. “Or e cdonreds Cage eanebenes aete eee : ' . eas. o02.S 007. : eubgveea G4e bes 440 SRO Cte r ee erre ASL avs. f 602, £ 003,£ cavencewacbes betbes seen sen eeewaontE Tas, fé 238,29 aes,.a8 Neckedticsn tities teenie 7 O00.0f O00LCL OO0;OL = ss ncevecece-pesenqeee teiee e'tend1eT- #S2 sto... aso.f cag ued aun ceo CoRR OO - mottsioorgesd © “— WSs. ove .é Odf,.& bu deewdcecdeccesgbtala@: (nOltetseme ‘vg SST E Shd,6 BVs,é ve wccseccceveeUronoitetve bae gatiaiti BRE.fS BOOMS SLS,C8 cacccsevse+eees SOiTIo Smor ,.0L $8@,8£ 8Ye,1 @ Sake FO: pbs .0m Malas | | | gotguns Ef oe Shh . apf A : : eee Pe Roe as 3 oF esonnwol{s igo Peary lacing Pg o och to BagEiot Tol etotiseto go emtafo one €£0.19 eos — ot sonefad e'toideS to noigssiiqas coef. OFse esesdoisg fitod (008,02 to dnyoue offs af tnyocos strost ao sivsee " ,tnshaocest1co. smee ett Yo emaa.s¢s at anted esauooen | > ino Sefsicrs efavones isminon e°s tattewode T9R591 oct 2 eeoansto dese ylao nissxco eatin{st esti bas soasiresl ~surguad ,uerteitrewsa Softisas efauqooe fanimoa 22% tw | al ian DER). . a are vere é : ae! 58 .OOS@ ee ~etnioogs *erotise1s.0F > sgog yinh sofovat yo gated ak ; | flees Sma 0138 Yo eegrsto meso swore tanoooe Saf hrierlotoM tr 5: Uae eos "gotisers ot hoteod eeobovak evwore &: 3 | "OFS 9¢ DISCOUNTS, essences . 180.00 180.00 EXPONGOS, . fs 6 hs «ws 1,000.00 1,000.00 Personal drawings, 2,000.00 2,000.00 Office furniture,. 500.00 .. 500,00 Oat Cale «ass ee wal 1,647.08 1,647.08 $11,580.08 $11,580.08 $350,627.02 $350,627.02 $16,196.00 $16,196.90 Cee cee An analysis of the books afforded further information as follows: Tenants were allowed $71 for repairs made by them, which sum was applied on account of rent and charged to owners. ; Owners were charged for commissions on collections $869.70, trade creditors bills for repairs $3,566 and insurance $52. Clients were charged, insurance $668, coal $906, fees §120, commissions on sales $1,004. 164 ~ «= mers oss ook = ons . we” rece S7g0" | yee * eorewe on soyreagrous Beea" 30" $n 23 tor ‘eboqee megs ph pow” aprop em : Seen — ich sacral oo. “ROY *PEO"OE tO" eros 3200 "EBC 720700 | Gowmyocyousy +++ + oa | “S'7769S es = | aes eae eee Siete | ; I3Se*00 be; a ihoqe oneq7ys one’: | TIF'00 OF BET “40 eb ta mo. oyyewpa®* sts ess seo’00 «8 589°00 )§=—- JOO SaF "00 708" OSO"OO - TOF OO. mee) BeUBLE ss tt ls | 8" 200°00 3f°€7T0° 00 O9 ABE OQ 7. = ee Beupge socrmog’**** & T*o@0"00 Qe" ASE ‘00° 2% CRE"00 | . Lewsuega* teen eterna T’oeo "00 = o¢* ere 00 g¢* dB 00 | ASB "OO MPEG? > Aether sss SB Sao ge STQ\'*sas'eS $T22°892"so SIT eet’ oo : ae Mme Bityee ot sccomen peyvuces pso° 30° 7902 yxovegostoue Tu Ta0e@ —«- BaTsWeee pec’ 33° T50e ~~ te eh ae RN NA RED Mme cate et mete > epemaoam mmm mcm meas aati gaa iat ae ebexyve aug oyoorut peyauces sug rueonacuTve AoTMNE ot gnvUavoryoue: hoe gape pooxe of yopere mers? Lesy eegsge seus’ TOL FYE hess. Fe0e" {ies 0ek ae 4 OTT _ Chk Ot btv? EXeMywsg7 ON) is : 4 as | | bBOBTER WO" See" oi a a Bo? Trade creditors presented bills for office supplies $50, insurance written 9576, coal $815.40; they were allowed $180 for discount on settlements made. Commission coal orders wer Suppiies Accoun on sales, collections, insurance written, and closed into the general commission account, and vas transferred to Expense. cr Oa i The cash transactions were as follows: Receipts - tenants, $34,717, clients $102,070, commission on sales $1,010.62 Payments - omners 930,051.30, clients $98,231, trade creditors $4,661.40, personal drawings $2,000, Expense $950. Prepare an ARTICULATION STATEMENT, showing in each account the several elements of debit and credit and giving each element the title of the Articulating account where in the contra credit or charge appears. Ref. slel 164 = TSE ig ei 088 estLaque coltte 10% afiid Detase “S02 O8f$ Hewolls exer nea 703.8683 L805 ant onubieutiind este i: femoo Lerenag off OFnE beeofs fos -sanugxa oF os detxckensit ears risceH vtevwoLliet es ore? enottosenss? . i sef-e ao soleaimmog «OVO B0L2 ainolt gbe sale Oe é sgodkbst9 ebhert yl&S 80 etmetio ,0b.580,08¢ ezenv | .089% seneqet .000,86 cats ich er) 8 £0 ak yet? wode " MSNATATE NOITAIVOTTAL ae exe * Tr ® acivig bas tibeas fas tidab Te scueanad reves tibSero srtiros add mi srede tnvoosn anigelyolita ede to pane i ited lll ae 4D hy &+ Oc cr t +59 7 PROBLEM NO. 246. 398 (N.Y. C.P.A. Examination) On July 9, 1907, Smash, Slump & Company, bankers, buy from the Atlantic Ocean Bridge Company its first 5% 50-year gold bonds dated july 1, 1907, interest payable semi-annually, amounting to $10,000,006 at 90% and interest, with a bonus of 50% in common stock of the Atlantic Ocean Bridge Company. Gn the same date the bankers form a syndicate for one year to take the bonds at 92-1/2% and interest with the common stock as a bonus, They make no charge for expenses. The syndicate is formed as roilows: Jones & Company take $1,750,000 as a participation Smith Brothers é 6,000,000 Reader & Company ‘ 1,250,000 . Smash,Slump & Company ” 1,000,000 . On the same date the bankers pay the Atlantic Ocean Bridge Company the total amount cve it for the $10,000,000 of bonds, and carry the syndicate, the members of which make no payments to the bankers. On February 1, 1908, $6,000,000 of bonds are sold on the stock exchange at an average price of 95% less.1/8% commission. On April 1,1908, $1,000,000 of bones are sold on the stock exchange at an average price of 94% less 1/8% commission. { Prepare statements, as follows, showing the banker's and participants’ accounts as they should appear on the banters! books at the close of the syndicate: a Statement showing the bankers! account for the purchase of the securities including transfers to syndicate account anc vrorit thereon, b Statement of each of the syndicate menber's accounts as they should appear on the books of the banvers, July 9,1908. c¢ Statements showing te transactions anc orofit and loss on the the bankers! own participation account, assuming that the bonds are sélling at 92-1/2%. In making up these statements, no account neec be taken of the coupons paic by the Atlantic Ocean bridge Company, nor of any in- terest charges by the bankers to the participants! accounts or to its own participation account, as it may be assumed that the cash received for the coupons by the bankers! will be sufficient to re- imburse them for their advances to July 9, 1908. Ref, e4~1, st ) 248 Of waraor? (aottentnexg hed a C add motlt god .et9x aod eYaraqntod 3% qmrle feomd Bhnod bfcu iseyoO02 RE Fertt esti ya 9B Di of gaitmvoms ,yifsvans-inee sideyeq teovatad x: Z » Bets mommoo at xX ie to ecnod sa dtiw ,teoretal bars) noe +8 000,000,013 .yasqaod enbind asesd otonsish om to foots a ot IWwsey ono 10% otsothave sg mot eteinsd add steb omse ony no 8 ef Yoote nommoo edt dtiw teeretat Saez RS\{-Se ts ebaed oct Q at Semrot et a¢selBaye stiT .agenmeqgxe te? ee: om 92!.sm ‘yen? wesley a : ; ec Ot es ; aoltaqisftiss s es 900 oat ond | yaeqmod ¥ eonot 600 000.8 precgord dtm? Eat 000,028,f ‘s yYosomod 3 1zebhsen . 000,090 .£ 8 qaagmod % om cig eg5it& aseo% sitmaefltAa orld yeq etotnasd sit ets emse oft m0 bee ,ehood io 090,000,0L8 ext tol si oerd Sageme {stot ect Yusqmed eid of etasmysgq on ovam dotsw to evedesm sdt 2oteo Love | ott uae ed Noote oft mo bloe sis ehnod Ye 000 000.88 ,B00L .f precast 0 Ma {[IttqA m9 .moteeiommo RB\L ceot REC 20 Sotiq exstsvs ms +8 egretoxs ge $8 enradoxe “sote ect mo BLoe site e5nod Zo 900,000 Se 4 come , .moteeimmos RS\L ewof be 16 sohtq ogs19v8 | hrs atasrined oft amtwore ,ewolfot es .esmemesste eTeqo1t — SE 9OS feio'asd ef? no bates as S{yorle yet es edness ‘etnaqisagted . aneok here ets to seolLo sat. ta y to eestowdg sft «6% tawooos ‘ etatined ort aniwede tromeseté 8 duvooss sdsoibave of eisienstt gat®cufoni eettinusse orit a -,moereds $iiotq ons tea ze etasesse e' vedrom osaskhvtee. edt to Aoss to tramstet? Cc 802f,© ylut .etevaed oft to efood ent mo wescgs SLuorde eft mo 2eol oma tittotc Sas enoitesenstt o”F gniwore efnamesstZ 2° oe ) eit tect antrwees (tnuccos sottagiotsisg mwo Setsined oft ae RS Lrsveveeoess SOiteice e'aompolsa OO+eSs £££ “hc ose Say ire Rie eee wcb es ececeeg SOR GSO VES setae 00.cfs. disse be ebeeneD tex ton selses to tavescce mo atisoged 00.060, 8& 5s sila ee ee s+eceerssgbfos ytrsqoerq so bled exsntioM é2,. 220, 3. we see iw & © br cc eb nee sees hachbaeis sb be Cems Hee ee wee eee eT. ERS ben aaeecee gh esilgque aottte 10%) etawooos ‘ator t. es a > es © & as sree @P we eee eo es & .bevieser eegearzon re teor9eta 2 an78t toa bas evb teorstat 00.26f3 to tmvems me cels et stent -TO2L ft .c98 to esgestiem ae feexesai Beuzoss OC.2eSe fas boviso ele .000 of q iseqqe esise bns seanedxs «ok court seeat 7 :006L 00.63,£ i ne ere eel conc dcvcnsenveseeeg@OHedxe S0kt tS ta0¥ wet! S6.%83.2 Simin san wg SEE teeececcees-.SaMegxe soltto sidglebsliat OS.) | kas s bance ne ster reravcenceesen eq iioaee@ige to asizelsd 00.000, 6S Cte tn tetera st ewesenetasenaseseuen g TOE atoll 63 - .99f68 ae teods eoneled osle .eaottereqo to. tididus. Seltsieh s: oxeqort ~orq edt to tididxe deir tA brid? edz to “ieee | puroo°8 YsTeq wee | Soo | 008 «test 2 re a) P i> ye Rn _ _ eee ae - PROBLEM NO. 350. 2428 N.Y. C.P.A. Examination) The following balances are taken from the books of the Roberts Be ee Co. of New York City, on the 3lst of December 1210; Beveovery of: finished codes flan wy] )ytestetasieyidies + << 0 $ 3,684.57 Peren lorry) Clr ran materinkewivan. Lp calsnaiaie, Deu Dee $353592-.70 Purchases of raw materials,......... iMesh, Sasleiwes 62,519.85 PELL OGs < wees a ein eisai a hte ee. & ae eS ae eee rarer ee 2a B17 , 387.42 Tie, Sy Hee R ees tate Dulas oes os gO wate oe 109,317.88 SRGUs Va aerca ln otel Giete 4k Ck wl a0 a Ree ere ate ease Wado cm) ine ate eae 19,500.00 Discounts received. ere gee lates Es ae me aaa PR aoe eR 375.60 Sane ee TO SEE EEE El gansta oes nhl wan ww alan 'n eee elle 186.36 Fe EE ATR Te gs wa ew ed be Wis és tin a eins a's a's 8 5h 8 nm 8,710.64 Light and heat for office, .... sates tet ele ida aos a olen ata 168 .00 ee Ek a a a te ay oe eae ee 1,090.00 ee Uae are ae Tie oe eaeicg Seatatnta eat ats Perea nla ath a nt na ae en 8,017.00 Factory expense, ee ee ee ata ae ee Gta d oes aie eo 3,270.00 eR Oe ier icles sae ROY ols wR A oe lke n wp Owe Os 5,289.00 BO Cee OO OR eee et oa es PS RG ok Re 1,050.00 General insurance,..... My ae DOH A Rae a oR a ae eee Ley 750.00 Te SEE ok Enc rie ee ae Gear eae a 13,350.00 OU 1 eh cttaly sieligte triiate wiaistwinrs Lo ee Cts See Ce Mee ne ee 3,600.00 POMEL OTIDy dwn s da 9\4 0.0 & «wie AA BOR Sa eA a a 7,643.00 87 Se ATS Ps 2). a gen eee (YS BARE Pree Ee eR Oo 9,700.00 Balesren’s salaries,.....s. Dale aivk die on alent ee ie aw 4. yd . 8,930.00 BECO T es TOM LOBNO Ls seas es os Oe. ene tte en eins & irate se 440.00 RE ees ae a ae ale wn eWeek UN < Oe ak os se ps wwe oso 228,000.00 VLSCOUNL LORS oils ekistealcs ae GOS wen nyse ale ih ake 2a. , ~ 130.00 Notes receivable,..... Baio Shoad, idives eee wine Fes ce lec hict anaes 130,000.00 MOGGM SeGetVACLG, CLEGOUNTEK, «case see es tees sv minens -. 8,000.00 BOUGE DRVADIE, « . kikiaein's Hes eee eek el = . weet se etree ecere ene nesses e sgt .sesadom7 mo bovisostr atnyoost : sot -ceneaee zo bevofle stnyooald. ovseces gt On: bas tdgir hy, “Feng 63,753.00 a Prepare from the above a trial balance arranged in Systematic order, so as to facilitate. the preparation of financial or business statements. Draft journal entries for closing the books. Certify your.results by a balance sheet. 7 Q The following items are to be taken into consideration: Inventories | Rewomateri alsa, «os. maar Eadie yk w= Bo le wnt « $16,250 PIMIGHGA COOGS, ++... 102s UP Pe Pe ee ee 9,386 DOORS of crewla evens GUNES A Dic ial a Ak a - inte nies airs Teac < 4,000 otationery and printing, ...-.ee-caseres sel ates, oblate 300 Allow for depreciations: on machinery 5%, on horses, wagons, and harnesses 10%. | Reserve for bad debts 3% on accounts receivable only. The item of rent $19,500 is to be apportioned as follows: 53% for factory, 32% for salesrooms and 25% for office. The item of super rintendence $3,500 is to be divided 3/5 to factory and 3/5 to general expense. Ref. 32-1 164 a eu ; es ea hk a werk ee oe oe ae = eee een ee S & y oe i aig wei Che Se ee Boncerze comeled Letrt # oveds odd bee noiteteset: odt otsdifics? of as 98 tabte | oftse .atasastats avantend to Lsfomaatt »eiood edt aniaots unt eelrine Posvcsners-g pier teede soarlad 2 yd ad ivess. a Ey Cas se ME ee Biate i? _eepeeer eee eevee eeee+r eae eer” ste re gers gaDOlG bea ii i) aa 4 Wie ete oo ond tes ao ue Se: crim eco a otal ec ee ee ish 34 = Pe cae So gay ies baw iewaewe te oe nes sotti JOS 4 EI taba bh daieeennon oheae 64 _ wm—icetysb tot evrsest bus feelq to aolt 00.000, 5 ones eee. gSosmgirps toseqes x02 evzieescH me yrenidoen 20 mols O,002,.é ees eenenene ~2loo? bas : iy : oe GOO Ee noon 3 + sibun oC oom m ee Te ARE cane 1 E\GL te vxotaorn: oct? ) _ £\f ts yrotmevat sat OO ..003 88 Bees iseeucget 2007 202 903.d8 Zo ttre cece egeem EEL = Poi | : : a i ie. f v3 & ‘i ! 245 , You are asked by the Company to prepare a report to the Commissioner of Internal Revenue, to be sworn to by the president of the Company, in accordance with the provisions of the United States Corporation Tax Law of August 5, 1909! Submit-the statement and the working papers ee the ‘items included in each group. Rei. 32-5 164 a iG . edt of Proge: & StEKSTT ot vapaees taoblestc edt yd of nxowe sd of pgp bos kat eit to enoietvorg ed? dé iw :e0@L .¢ Sang to. wed edt airforce 2 ateqey grbasow ox bas rt 4 = PROBLEM NO. 3852. B46 CO H = (N.Y. C.P.A, Examination) THE TURNWELL TRADING Co. Cash Cash receipts Credited disburse~ Charged Trial from to profit Triad ments to profit balance Jan. 1, and loss balance from Jan. and loss Jan. 1, to June June 30, Jan.1l, 1, to June June 3Q, 2710 30,1910 1910 1910 wOy 20.0 1910 Land and buildings,..- $30,000 | Mortgage payable,... $18,000 ¢ 3,500 Horse,wagons & harness 5,000 | Accounts payable,... 9,000 23,500 Investment,bonds...... 10,000 Interest on mortgage 150 «$ 210 Inventory, mdse€.,...+- 11,000 Salaries of salesmen, 1,500 Leora Stable supplies,...... 150 SUrpTe po an sis tees ek gO ae ee eee ee 1? , 500 Capital stock,;,.... 50,000 Accounts receivable,.. 14,800 $36,000 _ PUTCHABES, «us swbee es 230,000 Interest on investment | 400 § 490 Freight, .«esseeesees 425 425 Increase of inv., mdse 500 Stable supplics,.... 300 235 Capital stock,..+....-. 5, 000 Advertising, ....+.6. 50 50 Interest on bank bal.. 80 : 80 Administration, ex- BLOG ss s0 546s oF te kis cb 58,500 penses | 6,500 6,500 Horse, wagons and ; HALNESSgccseseveee 500 "ge ,450 $41,480 £39,570 $88,450 $35,185 &28,995 Prepare a statement showing amount of ledger assets as of January 1, 1910; add to this statement the increase of capital stock and the income of the period; deduct from the state- ment the disbursements of the period, concluding with a balance sheet showing total assets as of June 30, 1910 e Oo~5 Ref 164 f Bis ois 2p ae 2 sag re ; ae | PeLbenat** s+ eee sss HoRre* ugGove sq feo*¢20 $90? r92 #2 Aon * gap bevece | | a thee! yomyuyepgrsgroy* exe — | @. 200 VRACKPTOTURP +++ +s a: -efenre enbbyron’--- 300. a i Gt steerer eer ee wl BMiapuncat ess ses sess TSP Cebyfey onfoce*?*+- +> ero Se Juacomeus’p uses eee | SeyekTOe@ of osrpeawon*- Petts Ferstinge poee bie rn Ivpotese ov MoLrpese | ee ee os PtizeyuseT + te _ Yoosauge Beaupre +++ 98900. -32*260 we 000 é yyoxu ire Re her. tpre?* “ee wd 3 a4, pte: ‘JeI0. + 20°T8TE =~ TATO GT3"900 - $ 2°00 qgp* y* fo 4fNe ane 20° | Tayo | 20° Foro | PSTIVeS que 7° sug foan | fsa I 20 Yue * Bete] reo’ © go Hhorte ES SS ee LeaeTber Qtheq? seq | bk GST arnp LHE rrr IhvbtHe co* : es (u"X* O°R"V’ Bxomyusrrow) | jas itd cos —- BHOBPEN uO" s28° ase s PROBLEM NO. 253. B47 (N.Y. C.P.A. Examination) The Cambria Company is engaged in the manufacture and the sale of millinery. It buys and sells, in addition, gowns, veil- ings, laces, furs and novelties. Its factory, salesrooms and offices are located in one building, Ail its sales are made by salesmen or saleswomen either in the salesroom or on the road. Millinery is sold at retail and wholesale, while the other classes of merchandise are sold at retail only. All retail sales are recorded by means of sales tickets mumberec consecutively and used as a direct medium of posting. Fholesale sales are made on credit only, while retail sales are partly on credit and partly for cash. The firm desires to obtain accurate results of operation regardless of overhead expenses of each class of goods. It also desires a form of retail ledger that would reduce the considerable labor entailed heretofore at the first of each month, due to the fact that the monthly statements give details of sales to customers. (a) Prepare proper form and ruling of a sales summary to take care of the retail sales only. (o) Prepare proper form and ruling of a retail customers? ledger, to comply with the requirements mentioned above. (c) Give instructions for the operation of two books. Ref. 34-1] 164 = at froltemimexd. oA q.9 *. aa SAS Bas sistosionan edt wz bensgns e e ~“LIAV ,Sitvon ,moliibas at a “OL to brabivks « ¥oq bas anoliteglido sti teem of rebro al sdsm 2 a fidoss Ledigeo ati te 000.0088 ao. | PROBLEM NO. 3256. (NeY. C.PeAe Examination) The office of a firm of traders, doing business in San Francisco, was destroyed by an earthquake. The books of account, which had been fully posted, were badly damaged. The following ledger accounts were found to be legible: Purchases, net 969,000; discounts lost, $640; discounts gained, $3,450; sales, $54,000; bills receivable, $33,000. Inquiry at the bank disclosed a balance on deposit, $129,000. Bills re- céivable amounting to $45,000 had been discounted at the bank. An audit of the checks paid by bank showed that $99,000 had been paid creditors (including $60,000 notes payable). A balance sheet pre-. pared at the last closing of the books was produced, containing the following items: Cash, $60,000; accounts receivable, $126,000; loans receivable £24,000; real estate, $90,000; notes receivable, $78,000; capital, $318,000; notes payable, $60,000. Prepare a trial balance supplying the missing accounts. | 164 288 OM MEISONT . (rodtemtmsxE ele. 9 Yom) ; ns? at esertesd natok (axrehatd %6 welt 2: to eeftto oat ~tmuoces to edood edT -.odeppdttes as yd st Saperrirn:—» snl oc nrivoifot siT .bevamsh vfbsd stew ,boteoq yliut a ed bed : :eldigel ed ot bessot stew efmgoocr is Le Ps ataroseth ;O0a09 ,taol etmoosth 000 C32 tere soak at yYrirepart .000,o& .efdsviteoer ailiid £008 366 ,eotsa ;Och, t est siffa .000,eSfe..¢fsecaqsS ac sonerad £ bsooLoe tb aed A .insd edt te bstavooeth ased bs 000,ch, o¢ snisnmomes coreee hisq mood bed 000,002 tsde Beweda dasd wd bisq edosdo sit to +bbes ~siq tesde sonsfa¢d A .(oelfdevyer aotom 000 08s naibylont) etosibers : gainftetnos .hessborqd esv aaood ent as anteots asl eft ts Dex | actos t gaiwolfot 9 sidevigooz areolf 7000, aails .eideviaoer ai aoo0s {000 ,0d¢ iesd -istigso ,000,ST)7 ,sidevisost gseion ;000, O88 «testes Lser 2000 887 2000, cad eldeyer aston ,000,8fé¢ -ofmyoocs grtacim ent aniylaqee sonsted fsiut s oxeqerd E~0e $2 £ PROBLEM NO. 257. 250 (N.Y. C.P.A. Examination) TRIAL BALANCE OF THE GENERAL LEDGER OF JOHN DOE, CIVIL ENGINEER, AT DECEMBER 31, 1911. ce 6, | kar $10,572.44 Manhattan Construc- Furniture and fix- Wenests ic vee. & 5,000.00 aeeod. +. eee 1,054.68 Report #1 Swanee Real estate (Ruther- Creek Railroad,. 5,300.00 Ferd Homey oe... 6,000.00 Report #2 Englewood Investments in NERC TVOLY 2 e's >. 5 4,500.00 Wome Se Be oc ote 15,457.50 Report #3 Long Acre Investments in Lf berg: tog Pee : 3,200.00 Leche tal peas a mae ee 3,000.00 Conn. Tramways Co., gS wt Pet Missouri Pacific Earnings = consult- Margin Account,.. 13,000.00 BE alo eel SE See 3,000.00 Accounts receivable 15,361.33 Report fees,....... 16,000.00 General expense, ... 9,800.00 Sharp & Company, BRC OCG wes 6 56s > 2 1,060.00 DPOKCTS, «262 2. + 11,310.00 Stocks and bonds,.. 4,300.00 aera tie Cte Bile aS Se Shae oo ees 21,745.94 $75,305.94 $75,305.94 Analyses: General expense - salaries; John Doe $6,000, other salaries $1,800; rent $1,000; advertising $600; cables and telegrams $90; stationery and printing $110; other expenses $300. Interest - debited with £1,300 charged by Sharp & Co., brokers on margin account; reduced by dividends of $390, credited by Sharp & Co. on margin account. Balance on loans since repaid. Manhatten Construction Co. -— represents consulting fees re- ceived during the year 1911, the contract running from month to month, with no expense to John Doe. Reports 1-3 - are completed and delivered. Account contains fees, less expenses. Connecticut Tramways Co. — represent $2,000, received Nov. 1, 1911 and expenses $50; according to terms of contract, John Doe is to act as consulting engineer for 10 months and to receive al- together $5,000. Report fees - fees received under contract for report. 9,000 received on contracte on which no work has been done; balance is earned. Stock and bonds - are sold. Account represents balance. 164 ee Oke ee ee ee oag ToS .O” MEIGOAF : (rottantowed .A.T.9 + , doua gicrG .abmod To eslee mo atitexg eeorty edt tae rsitdeso off oe ) ,resrold brod eft +07 ci0t 5° Sie t x - J. i a a - See ste vd £86 .O% MEIAORT (nottemimsxd .A.T.0 .¥.1) a a aa sigeo [anoit this gatrivpet oltsereqzoo aivuegostuass A” | a edt dtiw .woled nevwig tnomotsts oad et it 2 perigee = 7 ae fstigesd .stkierg egiel YIsv -trow gdt as Liew se .tasiq ; betiupet o4- ~ot tusmetste edt ssylemA -2eoeyoigas beflide yidgid to eorot gad cbnets attasdavocos sit mott ¢i ao yltelad tmeumos bas teined oat | : yrer fe YIU... = 600 ,de 3 a ee a o ugles wee on g OERIRO 148 } 000, 0059 - ce dwbuvartinsee ORtS Teekaeo me “oe , 000605 Cp eres canes se @¥TQRdaoan . ia 000,02 | ~ ss +e + gS ORITHOD mC BOONSTDA | | ae a 000.8 . sss se peekkaawe bas afsizoten 00¢,¢ Seer Geir SP Ale a 2 - 000, 02 rere ee ee -* a gi liRsooe va; a : Bae s:, Poon een illeegzeno botrstst =” b ecatee 1. eldevisost etmvoooA Q0E,8063 .. 008 .8eLs Ie ee pal eas Pe ee ee. ie ene ye] ee ee omelet ee ey! ne ET ae ee ee Pe, heh 254 PROBLEM NO. 262. (N.Y. C.P.A. Examination) R & Company and S & Company, two large umber dealers, organized a syndicate with a view to a consolidation of their lumber interest. The books of the two corporations were ex- amined and all assets valued by appraisement, showing the follow- ing result: R & COMPANY S & COMPANY STA a a en charg x ugh. nj case,» a's $1,500,000 $1,000,000 Phe le foe Te: 0 1a ye a a 700 ,000 800 ,O00 Trams and logging outfits,...... 100, 000 150,000 Mill structures and equipment,.. 200, 000 250 , 000 Materials and supplies,........- 20,000 30, 000 EOC eeL Ah COIN olaeio mein ni Wie a lx wie 100, 000 200 , 000 Sawed lumber in sheds,.......+.-.. 230, 000 330,000 Bilis and notes receivabie,..... 40,000 30,000 to5 aa: AM Cols 010) + a: are 110 ,000 330, 000 $3,000,000 $3,000,000 The syndicate organized the Upland Lumber Company and sold to this new company all of the above property and accounts, ex- cepting the title to the land. The syndicate also entered into a contract with the new lumber company, conveying the right to ' cut and remove all standing timber, on a stumpage basis. The syndicate agreed to accept as its consideration for such.sale $3,000,000 of the Upland Lumber Company's preferred stock, and 3,000,000 of its common stock. The syndicate aiso organized the Hilltop Land Company, and sold to this new company all the lands, as well as the stumpage contract made with the Upland Lumber Company, receiving as its ‘consideration $1,500,000 of the land company's first mortgage bonds and <.1,000,000 of its capital stock. In organizing these two companies the syndicate paid into the treasury of the lumber company $500,000 in cash, for an equal amount of common stock, at par, and into the treasury of the land company $500,000 for a like amount of its capital stock, at par. Prepare a balance sheet of each company, giving effect to the organization transactions and to the purchases made by each company from the syndicate. Ref. 44-5 ae ee — bs das , | .So8 .Om Macon? ,otofsebh xedast ogtel ort ,yneqnod 4 € fan Yasqmod oH aiedt to moitsbifoanmoo # ot weivy 8 dete ateolbaya s Sos tansy’ mx oTer acoitsroqros ows sat to edood eaT ..feeaetn: TS -wollot edt saivode .tnemesistqgqs yd Soulev atoces Efe bas hentia wer otOm 6 © ae Sey OR Tana. 3 3 YuATOo 3 8 00 000, I> 000,008. I¢ ) ** see + ‘ial eee eee oe .ebast xodmtT. : & 000,008 OOO, OoY eon nals = = eee ee gredaute na tbassé <] > ee 006,0ef 000 ,OOL toes gat ltdue gargnct pae axcrt «© =i 600,085 000 ,OOS ..ainongivpe Ans esstuterite LLIN 900 ,O& 000,08 aeeesees @9liguye Bae eletretes OTO ,00G 600 ,00L Lau veawease whee g@OOC O07 BD aged 000,086 Q00,0c5 - eevaeseeeyebene St tsdaul bares | O00 Cz OC , OF | .. es gaidevisoss, sotom hae aitle b 000 , Oss COO,OLE tae es ees . vee, 8tavoocs *etemotex0 ; a Blos bas yasqmod stodemd baefqU od? bestaegzo eseothbays eat 4 ~azs ,siayooos bas yiueqoag svocs suis to Ife yaeqmoc ten etd? of = ota berotne cole otsoibaye sdT .bael edt of eitit ext anitges a ot ¢dyix ad? gmiyevaco ,ymequooe xyedmul wen oct diie tcriutass B ee edt .atesd opeqmds s ao ,tedmid goibasis fis evonue:' bas too a afso.doue 20i motdexosbiemeo «tf es tqsooe OF SesTSe steolbare | bas. ,Moode botretery a*yasqmod redeml Saslql edt? to 000,000.88 2 ~xoo¢e monmos avi To 000,000.89 | es bas .yasqmod bred qgosiiih od? besinsgro cete« stsothays edt Seas eyscmnts sit as Ifer es ,ebast od? ife yaramoo wen eidt ot Silos sti a6 guivieses ,yaeqaod. socal SasiqU ont ative shsaa torestaeo ejegizom terit s'yasquos baef sfz to 906,008, £2 nolttsteblanog ; ~woots fetiqso etl to 000,000,f3 bae shaod — otai bteq etsoibays edt. setmeqmon ov? seodt gaisicegte at me tot ,deco st 000,0083 yaequoo sodmul ont to yuweseat ods to yrvesexd sit otmk Bas .te9 te .scotea mommos te tmrome Leype ~woote Istiqso eft to énuome oil 2 tot G00,008¢ yaermce bast ode | bieq sssyors be Pe asamooks ,eoxeet 2ée obSS,9¢ Bis= siist ' bis@ sesmeqzs zodto ffs «CG. h88,E,5 Sieg. “eos pian Poets Guta borrsos bre oub 128.2822 eseme Tx9 bess0ce et gub 21205840 7 esutmery somemuomre1 beysoos Sap ogh ~T28,2 nen Laer ae | aera east 268,05¢ sev Semro esitiasosa Yo oe fexzen 6cT tae Mash emrinuesg Befrxso iusee od? to bas edt te eorot at axeizt act. to o¢egerags emt est 33. TST .2882 mus dois to Pi spt foe. ser GB.CIL£,ocfG bas ,seoi tO Te6y SHO maton eieli 20 eng iy Semiseay ent et&9Y eno nedy 910m Ropar eet evstit £o OFeRQOTERS § 3 +33. oge, fi o¢ betavens defd= xo eas hm ecreem 16% eomerofis evh gatden- eae embont edt “bas PROBLEM NO. 264. (N.Y. OC.P.A. Examination) A professional firm require an estimate of their profits, and a statement showing the Fa SPAS Sten of their cash. The gross fees are estimated to be 50% profit. The books are: kept on a ash basis. Prepare estimate and statement from the following sane: Cash receipts from fees, ........-.+ecee $218 , 000 Pre Le Cee. AOCOUNTEs:. gals. Sid oe Oa Siete. 42,000 2S CEB a lcreal cp goles a Ge a, 65, 000 PROBLEM NO. 2365. (N.Y. C.P.A. Examination) A public library presents the following trial balance of its ledger: Ajlen fund for purchase of historic PIC erate. Ot ey oes Beas wean ses § 92,000 Smith fund for purchase of Civil War SL GOTACTS fo ols bok « 08 208 MIIBORT he (noitanimexd bh. e3 ar fins a e2dit tong atect ic ofcaites ne otivpet wait 4 suomy edt .Heso zied#? to aoisie 20g LD. ody: £ to tqoi ‘ors axlood oiT .t£toxwq Fe am ot git sutwofiot sdt sort #mometste Das osenisoe casgert G00. Bf69 ¢ Seer ..e+eg899t morl efgiscer decd 000.33 Por ee -esevceeses qgatamosos Hesosifoony - 000,28 LL ae Cal nt de) SAS 0 METEOR 7 a ae ( noldsafasxd she de 5 Xe) e se i ; to somefed Ietat gotrollot edt atnsesxq yrexdil sifiduq ee : srepbel sett cfxoseid to essdousg tol Snvt asia OOC.SE Scat seccesensweser enter seo gQtserosle ‘ae ) xref [fvi0 to eesdoseq tot Snast — es 000, af Cone t vere rern neve scosenseg STMBIGEE com be oor 6 aWcnele aw eee eee teolt mort epee os ie 002 af ocasccneecoceseg0092 [agnmneh qitetecaea | 7 3a5°2 oe ee we? veeee ou pee asita wort enoort . at OSs cr rrsspreecsee quant SP inc rot z 6mep . ae - 023.8 g..,sseneqxe ytheve Sar eeitals2 =s 00.3 vote et ace ees cence ree sr bees gaten | cae COS. exotvexstil£ ofsosefd fo sendo ees merstil is% Iivid to susdounT ee Odh ons ee cea wen so 09 els oe gee aes > ae Oc .é Jesse we site k eee ee Re SBBQ 000,08 ....-.+s-ebmut moflA aeisiaeese | 900,21 cechend nae GAME it iad seta! wipes” PROBLEM NO. 266. (N.Y. C.P.A. Examination) | A corporation had a balance in surplus account at the end of its fiscal year, January 31, 1915, of $304,044.03 which in- cluded the profits for the twelve months ending January 31, 1915, $80,385.35. The profits to January 31, 1916, were $91,248.42, to January 31, 1917, $134,052.27 and to January 31, 1918, £150 ,107.14. : The dividends paid were, May 26, 1916, $100,000, April 10, 1917, $100,000; on January 31, 1918, they charged to Surplus $13,000 for salaries of officers that had been omitted from . Profit and Loss account before closing. | Prepare a statement showing the surplus on February 1, 1918. This statement should also show the undistributed balance of each calendar year's earnings, as well as the undistributed balance of the earnings prior to January 1, 1915. In preparing this detail, bear in mind the fact that the dividends were paid from the most recent carnings. PROBLEM NO. 267. (B.Y. C.P.A. Examination) From the following data (a) prepare one trading account for the years 1916 and 1917, stating the gross profit for the two years, (bo) prepare a trading account with estimated inventory for 1918; PALER 3910 gw Wiaeie sures - $290,696.81 Sales nominal,....- $493,476.87 eee OM 623 YP Ree pe ee 293,548.21 Sales in carload Purcnases 1916. ..02.5 241,709 .33 De aes win a cote 39,351.68 Purchases 1917,...-... 253,791.95 Return sales,..... 15,504.58 Sales discounted 1916 1,238.55 Sales discounts,.. 4,267.30 Sales discounted 1917 Jpvoo~eno Purchases, .......- 443,685.15 Preipney im 1916, ....' 3,084.35 Freight in,.....-- 6,211.53 Present A soe t sos ms « 4,094.70 Gross gain on car- Inventory, Jan. l, loka lots, «..... 1,956.42 2216, | 63,784.78 Inventory, Dec. 31, LoL 107 ,517.80 Ref. 47-32 164 . een eer Mn Oe =e Ars ae *evrew @Pevensere tnonetsta Letomentt s*eof ersqott . 8D ., tof -,etodizoadya 000.4 etsbommoccse of = ~02 2a egsstrom Oz - -Laype me # tedd? bebivorg essattom sebaod edt to dolfqueber edt tot yarqmoo aalisvereqo Bas aintetatssn 9600 | oe 06% bas emodqelet == ,00CL ..f ytavasG motte ey tedo ot —— Sit Le bites if fer 260 PROBLEM NO. 272. (N.Y. C.P.A. Examination) Henry Richardson purchased an office balicing for : 5,000,000, on which there was a mortgage of $3,000,000 at 6%, title to pass December 1, 1919, Interest on the mortgage is payable March 1 and September 1; taxes for the year 1919, $160,000, payable October l, 1919, were unpaid; special assess-— ments of £180,000, due January 31, 1920, unpaid. The transfer was made on December be Soace The inventory of supplies on hand Bea eoee 1, 1919, amounted to $29,500; rents collected in advance $42, 000; rents due and uncollected °54, 000; rents for last quarter of calendar year due December 31, $52,500; due to contractor $285,000. The insurance policies expiring March 1, 1920, covering the eh ode ageregate $4,000,000, the yearly premiums amount to $387,000. Subcontractors had placed liens on the property anounting to “68,000, while the contractor =. claims he owed them only $54,000. The agreement provided that 50 per cent of the purchase price over the mortgage indebtedness should be paid in cash, the balance to be secured by a second mortgage. Prepare 4 statement showing how much cash should be paid to the seller on December 1, 1919; alse prepare proper entries to record the acquisition of the property on the books of account of ichardson. Ref. 49 ~4 164 036 , -STS OW MEL@ORT ( moitsaiaserd oA.$.9 -¥.®) rot aatblind seltte ms beesdorwg soebrstolf yxrtet - ~seoess Ietoogs ,bkotne ster .eLef .I xrsdoted efdsysq . 0 : jn auaeb enh ,000, Mee -000,823 yao sedt? bero ed anisio — easdogeq sdf to too 0@ tsd? bobivozy fmemeetgs ocT fees at bisg od Givens’ seounbetdebai egsgtrom edt xevo seltg~ & Stsyetd .egegfsom bmooee # yd betyoes ed of sonsisd edt wsiies edt of blex ed blyoda deso doum wod rode sneuetsss — eas biocez oF asiasae rsqo1q exegqetg osls ; af tedmecesd 20 te gayocog to exood sdf mo ytaeqorq ed? to moitielspos = 2D zo +t) PROBLEM NO. 275. (N.Y. C.P.A. Examination) E61 John Jones and William Smith agree to merge their respective businesses as at January 1, 1920, into an incorporated company in which each shall own such share as shall be reflected by the proportionate net profits from their respective businesses the year ending December 31, 1919, when taken as a whole. for John Jones owns the factory building used by him which is valued at £1,000,000. businesses are deemed to be equal in value for the purposes the merger. The books of John Jones show as follows for the year e December 31, 1919: ee, ee a Ls 5's own d meee wins &1, 500,000 PURCRAGES TAT Me COTTAGE) «cone e ss cee acnunscagnes 700,000 Rr enGOr Te wanuaey 2s Lola gadn ase eb acasccaces umes 130, 000 eaventory, December 31, L919, -wwwcese ce cecaen ees 95,000 EEE alata ies bite lanca eae = ie reat ae MMA ca! ds (i gsr kn sek oo poli 300 ,O00 Repadre to Oallding,...~ aie a Se ewe 1,800 Hi SGoOulin GO CUB TOUGES, <60 canes Sew enn cee aw eeeoe 1,700 Taxes, federal income and excess profits,...... : 76,000 interest on borrowed capital, ........eeesseeeees 6, 000 For the same period the books of William Smith show as follows: my 1a REE SORES oO oR ESS ea ee ea $2,000, 000 PUTCOAGSG , «eseccs Pe ee i atatntecte meee sala nal ss SS 1,050,000 Inventory, December 31, 1919,......2-s02-seeneee 160,000 inventory, January 1, 1919,...-.ceesesenerccnes . 185, 000 Repairs tO machinery, .-cccseccesccivewassessaces 64,000 ee a, Calne ann abe a's ca SO + 4 ew MR ee oe ee 8 600, 000 ECG) OXPENSOR 5 ness 40s Vin 6 es eee ew eee meh ees 22,000 Mot sik be whee ene eS hie 5 oo st eee Was ea aiar em ok 76,000 PLT es eae a a dah ww Gs oes an oe One oe es ok ee ke 0 8 13,500 ‘Federal income and excess profits taxes,........- 86, O00 Interest on bank balanacesS, ..-e- cs eee eee eeeeecce 22,000 Bad debts charged off, ...-..eeevcee sere ccevccnes 500 “Dascoants G6 Customers, s« ceca ccc ee wae esa wenese ne 2,000 Selling Expenses, ...- cers ecceencserrerrcsvercces 10,000 The assets and liabilities of the two of nding SBS * say rr = ~ — he Se ae, FP ee foe ee Las ‘ «BES -O% MEIGOAT ' | | ' a it (moitentnexd .A.7.0 «¥-%) os svitosqes1 zisds egrem of SoTyS Agimd meifIET bas senol adob | yrsqnos botetoqreeml ms ofni ,OSer ,f yrsumel te es aovesatend eft yd betociier od Ifsds as stade dsya sro Ilene dose dotdy at mot eocesniond evigosqeet ttedt sort efitotq fon egemolsroqorg efods s as msust aete ,ofer .fe sedmeced gnihae sssy sade ei doine sid yd boas naibkiud yrotoss adt omwo eonoL sfol ont oft to eeitifidert bas atsece odT .000,000 .f2 #s boxulev to sesoqusa eit 10t sulev at Leupo sd of beweoh ors coseonteud = cS mmibas steey odd soit avolfet es Tode asnct adot to eiood eft ae 7 ae ht ae 3@fer ,.f& redmeced 090,006.25 oad dakessbhe comes eoas See oe nee ae «dim tin «sey ge 6 060,095 eee ela beedcvesgeLolzstem Men, ,eeeenoses 909,.c2f 5 en a pecsccseceegesed gk Nusueee axyrotaeval ts cay. hee ane wsvevegesod ,f& xrsdmooed eyrosaeval — wr Ag AS eecenane ee es ees eee bales SO bees ae eee eee : O00 dF slacnecceccocccccuea (haeenqitieanMen ie —=—m—— gs 000.08 ae eee Pane fee aeereeese getomglups o¢ erisqoeh 000,02 rr ere gaiiied 059,32 saline: Soaks pe cevecevcécbate desgQGGNOGRe Spmaen. 000.6 omnes taney s ea ee os see ee BONO BAOL OF yscled O9s48 ee eee eu debe ee ee Sut as ae re 508 .é oe et Ge Saladin cai eee ee .poxet 003.2 euececdusvevvived sb s6ugeeneneaeuee Isteeqs ,aexeT 006 bbe eenaces eres sseess git bonrsdo eideb bed o08.f ew eweacccccccevecs seve SOORSERG Anne ae tesistal ee eee ed eee cecsensccoeveccese+esgmotanyo of smvocett 000,89 cecessegetitota seeors bas emoont Ie1gbst ,aoxsT 000 .3 Peree rere eee ~-glatiqse Deroxziod ac sastetal as wonds dfin®? usiflrf to sfood ent Solreq Sass ei? 10F Ws setroffot 000 .000,.8¢ eer eere se atine we on wdele oe we apenas ease ; Q00 .Oc0,f er 009 ,05£ Stee seas sewacrequeel gE sodusoed .YIorAsvA 000 .<8£ ye wecccccescccsgblek gi YESuUaSL ,YrOsMeva 606.38". § 9 Snwae wae wacccceceecesceveseyiomidess of. stieqet O000.00G «<6 oc eo 4 halo dats ta dade eds tee ae 600,66 . a wees eee « deesceedegseceaqQegemere 8oliio 000.37 ee rvreeerzpeee zr ee ee gee ta ee, ae eid «> ase eo §0¢.oL on ow iy cre lm saaerga mala ct dau anaes Ws 9b Ja We wg 900,38 He See .,sexst efitery secoxs bea sucont Ierebet 000.88 ecewaccoveccccsceoe. gponensisd wned ao Seosssat > o0¢ “ Se dewessccecepacecasssse@ 230 RORRBR® BICR Oem ) 002.5 Cine oki e'n ewig wedi es 6kn as g ORME RND OF stesroos it 000.0 oo gee dn ales sees estes seen es ewe g COC BERR awe nee a bal ; ct af a ——e | 2628 Jones's expense for insurance on real property | amounted to &4,000 and he charged off depreciation on building $90,000 and on equipment £30,000, while Smith charged depreciation on equipment °40,000. The corporation into which the businesses are merged has authorized capital stock of £3,000,000 divided into 60,000 shares of the par value of $50 each, and an authorized issue of 5% 20- year gold bonds of &1,000, 000, due January 1, 1940. Prepare statement showing comparable net earnings of the two enterprises, and also the interest of each party in the corporation after the merger became effective. ‘Ref. 49-6 164 , Sas of bovavoms YI T9GOTY 3 bas 000,005 aaibiinod so me tto Segzed so goitsioorieh begrado & af tar .O0Gy oe f, ¢ 22 to sweet bostzodivs a6 bus. core act ai wtisq dese to testovat ost gels San ,sestiqis “augtoctie eusoed segisa ect settle moire. ~— ol PROBLEM NO. 2374. 263 (N.Y. C.P.A. Examination) The board of directors of the D,E,F Company removed their manager on April 50, 1917, on the general suspicion that his books misrepresented the true financial condition of the business. Prepare a statement showing the nature and the probable extent of the misrepresentation, also an approximate statement of in- come and profit and loss for the four months ending April 50, 1917, and a balance sheet as of April 30, 1917. a sane following is a trial balance taken from the books April . » aie: CORREA. AGtOOE pe ved eed Krewe A ede aleayMats Aetehiot. & 75,000 CEOs ied bs a ooo 0 a dee Pe phi Tee $ 10,000 suventory, January 14 I9L7»« «. cere 128,600 POS PSG. OF 2 6S. PLUTON Saxveas Mist wren ere 15,450 ACCOUNTS TECCIVADlE, we tee wevnvece ag 34,500 AGcouNntS payable). oss. eli. iat od Wane 39,000 Loans payable,..-..... SO aA erates ‘ 10,000 Sales; edocs Wateda Sidddevene lied kes 51,000 PD WAICORSDOO PS, be. AP Ovum deevetever eos 40,700 Salaries, saleoman,..-.sececsesscees 2,200 AGVECCl eines «vcs swwwwedovewes when tun 1,650 SSSOElOG OFT LCGy odd ee wtees tawaedeces 1,100 PSN, FO. CUPS ROS Dtcddbaetetetowde nee 400 BE CONVGSG So ro see cece des ee ae 300 Insurance, January 1 to December 31, “ ES ly Deere re MARE DA AERTS CORE Owe 999 Stationery and printing,....«........ 105 Reserve for depreciation of fixtures . 2,710 SUrpiUs, January Ly LT pees cidade es 48 ,394 9220 , 004 226 , 004 An analysis of the Purchases and Sales accounts revealed the following: purchases, year 1914, $122,000; sales, year 1914, $153,750; inventory, January 1, 1914, $101,000; purchases, year 1915, $123,000; sales, year 1915, $153,170; inventory, January 1, 1915, $100,000; purchases, year 1916, $121,000; sales, year 1916, $154,722; inventory, January 1, 1916, $102,000. Fixed charges were $29,263 per annum. A further loss of $4,112.45 occurred by reason of excess charges paid on loom labor and there was a loss of materials from theft and careless- ness of strike breakers amounting to $500. The total productive loom hours accomplished were 43,064. The maximum hours per loom were 1200. The normal production, at mill cost, would be $119,203.47. Five per cent on actual loss of production was also to be paid. Prepare a statement showing what the manufacturer is en- titled to. 164 bas | Lays .Om NEIGORT { xoitenmimexs ekeG OTRAS xiedd Rovomet yasquod 1, 39,0 oft to arorget ods ONS noisiqema fexedteg od? mo ,vtel -nt %© ¢senetsts otemixotags ms celts OE LtigA patbae adtcom avot said TO | | rer ,0f Lfrgk io ea Teods sonsisd 2 bar ae {izqA axlood edd aott mexed somsisd fsizt s et aaivolloy erat ne oe i eae ae 000,27 ¢ piedd ates sbeeek ees e nee Isztqso e 000, 0£ ~ | oe boceabeaneos oveehe ease fos OCCA0GE . hencearks .Tlek .f yrusenet eae sing ft $x9% 000, ff - odin ie cone oe ais > 04 SONDOICe feren99 ie ig Si Ogf, S582 oer. Toa BT) OO LES i a as ac ; OED in #145 aT RES Se 265 Prepare 2 plan of a depositor's ledger for a trust company that sllors 2% interest on daily balances. Incorporate in this plan the folloving varticulars exemplifying A's account: Deposits - July 1, 1900, $5,000; October 1, 700; November 1, (60; April 1, 1901, 350; May 1, 60; June 1, (4,807.78; July 1, $2,045; August 1, $100; November 1, $120. Withdrawals - July 1, 1900, $4,245; July 1, 34901, 87,103.30. 164 OWS oe ceytot ," (pone. ombacxt eh. 4.0 a2 ei etzosbeogse # to nslt . ac -taotetah - ~ 2oy szeyo (SqmMoo Feusss 6 “it at ow eorrsentt: «805m {so bag B &k “ Sty a ee Ves rte ae Meee fro ay. al fro. ssancoous ofA aniyriiqnexs t32" j00ry: a sash ye | | ‘ ine ies Wee: =e * ,ooer .f pik = Seale Loree > ae Fast 3 he BS : & wee “© fae ; ex ; : : sOt- SOL, 32 a* wnat : gap60 200Cadt: ORS ak nae et eget 4 »* ~/ + 4 - -O38 rer rf tet aves f me qg we 7 -™ s ceed ~* & a . te 74 oe > ea) ; ite. (Et SOR ey ot Ore joe of as * Los 4 . ——=) Deter a tale 40 ny gf fn 2 088814824