Student's handbook of accounting; solutions to questions in theory of accounts, practical accounting, and auditing contained in Elements of accounting ... teachers, students and practicing accountants

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. 1915 Excerpt: ...has this day incorporated under the laws of New York State. The following entries are made to close the old books and to transfer all assets and liabilities to the L. E. Smythe Co. (2) Goodwill $2,660.00 To L. E. Smythe, Capital $2,660.00 Excess valuation placed upon the business of L. E. Smythe, by the L. E. Smythe Co., a corporation, to which Mr. Smythe has agreed to sell his business as per contract. (3) L. E. Smythe Co. $17,990.00 To Cash $6,580.00 Merchandise 3,400.00 Fixtures 300.00 Notes Receivable 200.00 Accounts Receivable 4,850.00 Goodwill 2,660.00 To transfer all our assets to the L. E. Smythe Co., as per agreement. (4) Notes Payable $8,000.00 Accounts Payable 1,990.00 To To L. E. Smythe Co. $9,990.00 Assumption by the L. E. Smythe Co. of the existing liabilities of this business, as per agreement. (5) L. E. Smythe Co. Stock $8,000.00 To L. E. Smythe Co. $8,000.00 Received in full payment 80 shares of stock as per agreement, at $100 per share. (6) L. E. Smythe, Capital $8,000.00 To L. E. Smythe Co. Stock $8,000.00 Distribution of 80 shares of L. E. Smythe & Co.'s stock in full payment as per contract. SOLUTIONS TO EXERCISES CHAPTER VII BALANCE SHEETS AND TRADING AND PROFIT AND LOSS ACCOUNTS Group One 1. Differentiate between (a) Trial Balance; (b) Statement of Assets and Liabilities; (c) Balance Sheet. 1. (a) A Trial Balance is a summary of the balances of all the accounts. All of these accounts appear in the Ledger, though sometimes some of the accounts appear elsewhere, as for example, the Cash Account, in the Cash Book. There are two kinds of Trial Balances--Trial Balance of Totals and Trial Balance of Differences. The latter is the more practical one, and it is the one we have in mind when we discuss the Trial Balance. (6) A Statement of ...