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Power Plant Sundries, 145D.

Buildings, Repairs and Maintenance, 146.

Machinery and Equipment Repairs and Maintenance 147.
Factory Expense, 148.

Factory Sundry Expense, 148A.

Water Purchased, 148B.

Gas Purchased, 148C.

Portable Equipment, Repairs and Maintenance, 148D.
Lug Boxes, Repairs and Renewals, 148E.

Cold Storage Expense, 148F.

Motor Vehicles, Maintenance and Operation, 149.

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Oils and Gasoline, 149A.

Repairs and Maintenance, 149B.
Insurance, 149C.

Service and Expense, 149D.
Depreciation, 149E.

Incidental Sales and Income, 150.

Royalties and Rentals Leased Machines, 151.
Depreciation and Obsolescence Expense, 152.
Improvements to Land Depreciation Expense, 152A.
Buildings Depreciation Expense, 152B.

Machinery and Equipment Depreciation Expense, 152C.
Furniture and Equipment Depreciation Expense, 152D.

GENERAL OVERHEAD (ADMINISTRATIVE) EXPENSE:

General Overhead Expense, 160.

Administrative Salaries, 161.

Administrative Expense, 162.

Office Salaries, 163.

Telephone and Telegraph, 164.

Stationery, Postage and Expense, 165.

Exchange and Collections, 166.

Credit Information, 167.

General Expense, 168.

Bad Debts, 169.

Bonuses to Office Employees, 170.

Taxes, Corporation and Federal, 171.

State Corporation License, 171A.

State Franchise, 171B.

Federal Capital Stock, 171C.
Revenue Stamps, 171D.

WAREHOUSING AND SELLING COSTS:

Warehousing Expense, 180.
Warehouse Labor, 180A.

Insurance on Canned Goods, 180B.

Sundry Warehouse Expense, 180C.

Brokerage and Commission, 181.
Discounts Allowed, 182.

Selling Expense, 183.

Salesmen's Salaries, 183A.
Salesmen's Expenses, 183 B.
Sales Department Salaries, 183C.
Sales Department Expenses, 183D.
Samples, 183E.

Advertising and Sales Promotions, 183F.
Demonstrations and Displays, 183G.
Sundry Sales Expense, 183H.

SALES RETURNS AND ALLOWANCES:

Canned Goods Purchased, 190.
Canned Goods Sales, 191.
Sales Allowances, 192.

Overcharges and Shortages, 192A.
Swells and Swell Allowances, 192B.

Swells Arising in Warehouse, 192C.
Canned Goods Returned, 192D.
Sales Freight, 193.

ALLOWABLE AND TAXABLE EXPENSE AND INCOME:

Discounts Received, 195.

Revenue Received from Stocks and Bonds, Taxable, 196.
Revenue Received from Real Estate, 197.

Revenue Received from Cafeteria Operations, 198.
UNALLOWABLE AND NON-TAXABLE EXPENSE AND INCOME:
Unallowable and Non-Taxable Expense and Income, 205.
Interest on Investment, 206.

Contingent Expense, 207.

Life Insurance Premiums, 208.

Income Tax Expense, 209.

Revenue Received from Stocks and Bonds, Exempt, 210.
Profit and Loss, 215.

Account No. 1-Petty Cash Funds

These are small funds to be maintained at all plant offices out of which to pay all petty items of expense that cannot be forwarded to headquarters for payment. All disbursements must be supported by receipts, or memorandums approved by the properly authorized person, showing the nature of the disbursement.

When it is desired to reimburse this fund, the receipts, totaling the amount of expenditures, shall be listed on and attached to a "Petty Cash Report," showing the accounts to which the disbursement is chargeable. The petty cash report shall then be handled in the same. manner as a vendor's invoice by the invoice clerk of the cost department and payment of the amount will be made by check to the person at the plant sending in the report.

Closing Entry: The petty cash funds are current assets and will show as such in the balance sheet at the close of the year.

Account No. 2-Cash in Banks

This is a main office account and all cash received will be deposited

daily to the credit of the company and subject only to drafts issued by the main office.

Debit this account with all cash received.

Credit the account that produced the cash.
Credit this account with all cash disbursed.

Debit the account that received the benefit of the cash. Balance the account daily.

Closing Entry: Balance Sheet. Current Asset. Cash.

Account No. 3-Accounts Receivable Control Sales

This is a controlling account of the individual balances of the accounts receivable in the sales ledger. Close each account by the following journal entry:

Debit Accounts receivable control 3, and credit the individual account receivable with the balance of the accounts.

Note: Only the aggregate of all the individual accounts need be posted to accounts receivable control.

Closing Entry: Balance Sheet. Current Asset. Accounts Receivable, Sales.

Account No. 4-Personal Accounts Receivable, Control

This is a controlling account of the individual balances of all personal accounts receivable except those in the sales ledger. Close each account by the following journal entry:

Debit personal accounts receivable, control, 4, and credit the individual account receivable with the balance of the accounts.

Note: Only the aggregate of all individual accounts need be posted to personal accounts receivable control.

Closing Entry: Balance Sheet, Current Asset, Personal Accounts Receivable.

Account No. 5-Surrender Value of Life Insurance

It is a modern practice of large corporations to insure the lives of those executives who are influential in the administration of its affairs to provide for any contingency that might occur in case of death.

Debit the account each year with the increase in the cash surrender value of the policy.

Credit the account when policies are surrendered and cash settlement is accepted.

The balance of the account will represent the cash surrender value of policies in force.

Closing Entry: Balance Sheet. Current Asset. Life Insurance Surrender Value.

Account No. 6-Finished Goods

Open this account at the beginning of the fiscal year by direct Debit entry of the value of the inventory of finished goods on hand.

Then at the close of the fiscal year, by journal entry, Debit this account with the balance of canned goods purchased, Crediting canned goods purchased, 190.

Then Debit profit and loss and Credit finished goods with the amount of the inventory at the beginning of the fiscal year.

Then Debit profit and loss and Credit finished goods with the total of canned goods purchased account. Then Debit finished goods and Credit profit and loss with the value of the inventory at the close of the year.

Then to close the account Credit it with the value of the inventory at the close of the year transferring this amount to the balance sheet as a current asset. Inventory. Finished goods.

This method is adopted merely to show in the profit and loss statement the totals of opening and closing inventories and the value of canned goods purchased. The same result would be attained by charging finished goods with the inventory at the beginning of the year and with all purchases of finished goods and crediting the account at the end of the year with the value of the closing inventory and then transferring the balance to profit and loss to determine the net cost of sales made. Account No. 7-Consignments

In accounting for consignments of canned goods each consignment. should be considered separately and given a number.

Debit the proper consignment number with the value of the consignment figured at list prices and Credit consignments out, account.

When the goods have been sold by the consignee and account sales rendered, Debit consignments out and Credit the proper consignment. with the amount of the sales.

When payment for the account sales has been received Debit cash, 2, and Credit canned goods sales, 191.

All expenses incidental to the consignment will be charged to the regular expense accounts affected.

To close out the consignment account Debit and Credit the consignment account and the consignment out account with the balances of these two accounts, the accounts to be debited or credited depending on whether the difference is a gain or a loss on the consignment as invoiced. It is sometimes the case that when consignments are sold by the consignee the collection is made by the consignor. In this case when the goods have been sold Debit the customer and Credit the proper consignment number with the value of the sale. Then when payment is made by the customer Debit cash, 2, and Credit the customer. Then to close the account Debit or Credit the proper consignment number and Credit or Debit consignment out account, with the gain or loss on the sale of the consignment. Then Credit canned goods sales, 191, and Debit consignment out account with the balance of consignment out account.

The consignments will be inventoried and any remaining undisposed of at the close of the fiscal year will be transferred to the balance sheet, current asset. Inventory. Finished goods on consignment.

Account No. 8-Seed Stock Account

Debit this account with all purchases of pea seed, tomato seed, spinach seed, asparagus seed and any other kind of seed purchased during the year, Crediting the firm from whom purchased or cash, as the case may be, then:

Debit seed furnished farmers, 109, with the cost value of any seed. furnished free to farmers, or,

Debit the farmer if he is to pay for the seed and Credit seed stock account, 8.

At the close of the fiscal year take an inventory of stock seed on hand at cost. If the inventory value does not agree with the balance of the ledger account then transfer such profit, or loss, by journal entry, to seed furnished farmer. When closing the books for the fiscal year: Credit seed stock account, 8, "by inventory," in red ink. Balance and rule the account. Reopen by carrying forward the inventory value, in black ink, Ito the debit side of the account.

Closing Entry: Balance sheet. Current asset. Inventory. Stock accounts. Factory materials and supplies.

Account No. 9-Can Stock Account

Divide this account into sub-accounts with each size can used. These sub-accounts should correspond with those of account, 112.

Debit each sub-account with the inventory value of cans on hand at the beginning of the fiscal year and with the cost plus freight value of all cans purchased during the year.

Credit the can company from whom purchased or cash, 2, if paid for in cash. At the close of the fiscal year take an inventory of all cans on hand, then Credit can stock account, 9, with the balance of the account after deducting the inventory and Debit cans used, 112.

When closing the books at the end of the fiscal year Credit can stock account, 9, "by inventory" in red ink. Balance and rule account. Reopen by carrying forward the inventory value to the debit side of the account in black ink.

Closing Entry: Balance sheet. Current asset. Inventory. Stock accounts. Factory materials and supplies.

Account No. 10-Bottles and Caps Stock Account

Divide this account into sub-accounts with each size bottle and jar. These sub-accounts should correspond with those of account No. 113. Debit each sub-account with the inventory value of bottles and caps on hand at the beginning of the fiscal year and with the cost, plus freight, of all bottles and caps purchased during the year.

Credit the firm from whom purchased.

At the close of the fiscal year take an inventory of the bottles and caps on hand and then:

Credit bottles and caps stock account, 10, with the balance of the account after deducting the inventory value.

Debit bottles and caps used, 113. When closing the books at the end of the fiscal year: Credit bottles and caps stock account, 10, "by inventory" in red ink. Balance and rule the account. Reopen by carrying forward the inventory value to the debit side of the account in black ink.

Closing Entry: Balance Sheet. Current asset. Inventory. Stock accounts. Factory materials and supplies.

Account No. 11-Lye Stock Account

Same explanation as 9.

Account No. 12-Condiments Stock Account

Divide this account into sub-accounts with 12A, sugar, 12B, salt; 12C, spices; and vinegar; 12D, etc. Same explanation as account 9.

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