Advanced Bookkeeping Volume 2

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1919 Excerpt: ...it is determined (a) to create a reserve of % on $140,000 of the accounts receivable in order to provide for possible bad and doubtful accounts, (b) to carry a further sum of $5000 to the reserve for depreciation on buildings and equipment. Interest on the bonds to December 31 is also provided for. Prepare a profit and loss statement 20 and a balance sheet 15 in accordance with the above. LEDGER CLOSING Closing Entries Exercise l (a) Show the journal entries required to close the ledger of Miles & Jones as represented by the data given in Exercise 1, page 44. (b) Set up and close all the accounts involved. EXERCISE 2 (a) Show the journal entries required to close the ledger of Kendall & Parsons as represented by the data given in Exercise 7, page 49. (b) Set up and close all the accounts involved. EXERCISE 3 (a) Show the journal entries required to close the ledger of the National Box Co. as represented by the data given in Exercise 14, page 55. (b) Set up and close all the accounts involved. Adjusting Entries 1. Referring to Exercise 4, page 47, make the journal entries required for the given inventories and adjustments preliminary to closing the ledger. 2. Referring to Exercise 19, page 60, make the journal entries required for the given inventories and adjustments preliminary to closing the ledger. 3. Show the proper journal entries for the following adjustments incident to the closing of a certain set of books: (a) Machinery costing $3000 has depreciated 10% during the year. (b) The accounts receivable show a total of $18,500. Two per cent of this amount is set aside out of profits as a provision against possible losses. (c) A number of accounts receivable amounting to $346.50 are charged off as worthless. (d) Taxes accrued, but not yet due, amo...