Michigan C. P. A. manual; State Board of Accountancy, 1920

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. 1920 Excerpt: ...therefor, with interest at 6%. Five members fail to pay the assessment. The association having executed a contract for the sale of the property for $110,000, the club disbands at the end of the year. The club expenditures for the year were as follows: taxes, $1,800; interest on mortgage, $3,600; repairs, $1,000; improvements, $3,000; furniture and fixtures, $2,000; general expenses, $500; help (sundry employees) $1,600.00. There were house charges against the members of $500 which were subsequently collected; and there were payable book debts of $4,000. A second assessment of $100 called for to pay off the club debts, was paid by the proprietary members of the association. Frame journal entries, raise and close accounts on the association and the club books, and prepare balance sheet and revenue account for each. 6. The ledger of Jenkins and Brown at the end of the fiscal year showed the following balances: H. Jenkins' $18,950.00 A. Brown 18,950.00 Bills receivable 750.00 Cash $ 3,000.00 Book Accts. receivable 18,000.00 Inventory: Raw materials $ 8,000.00 Labor 12,000.00 Manufactured goods 6,500.00 26,500.00 Accounts payable 2,350.00 Bills payable 8,000.00 $48,250.00 $48,250.00 Pursuant to agreement each partner had drawn $2,800 as salary which had been charged as an expense to the business. The profits and losses were then divided equally. The results for the period just ended showed a net loss of $2,500 which the partners were unable to understand in view of the fact that they had done a business of $100,000, and according to their cost calculation this should have produced a profit over and above their salaries. An accountant was called in to explain the unaccountable loss. An analysis of the merchandise and profit and loss accounts (into one or the othe...