BOOKS OF ORIGINAL ENTRY 113 



lem 2 above, complete the trial balance for the first year before 

 beginning the entry of the second year's transactions of Mr. 

 Rodgers. The money columns in the cash journal are to bear 

 the headings, Labor Dr., Cash Dr., Sundry Dr., Sundry Cr., 

 Cash Cr., and Poultry Cr. 



4. Prepare for an oral discussion on the comparative results 

 of problems 1, 2, and 3 above, and the effect of the three methods 



(a) on the appearance of the ledger accounts, 



(b) the net results of the ledger accounts, and (c) on the trial 

 balance. 



(d) Also compare the ledger accounts and trial balances with 

 those constructed from the same set of transactions when the 

 latter were placed directly into the ledger accounts as in prob- 

 lems 2 and 3 of Chapter IV. 



5. On Sept. 30, 1917, A. E. Long verifies his cash and rec- 

 onciles his checking account. He totals the cash columns of 

 the Cash journal in pencil to date and records a debit total of 

 $2160.38, which includes the balance at the beginning of the 

 year; and records a credit total of $1328.48. His check stubs 

 show a balance of $820.31 and he counts $11.59 in his pocket- 

 book. The bank pass book was balanced on Sept. 30, 1917, 

 showing a balance of $851.69. In comparing the canceled checks 

 returned by the bank with the check stubs, it is found that 

 check No. 198 for $25 and check No. 201 for $6.38 issued to T. 

 Somers and John Walters, respectively have not been "cashed" 

 by the bank. 



You are asked to reproduce the statement verifying the cash 

 balance in accordance with the facts stated above; and also to 

 show the bank reconciliation statement. 



6. This problem is to be worked, considering the statements of 

 problem 5 above, if necessary. 



On Dec. 31, 1917, A. E. Long again verifies his cash and 

 reconciles his checking account. It is the first time his bank 

 book has been balanced since Sept. 30, as stated in problem 5 

 above. The cash journal on Dec. 31 shows a debit total of 

 $3520.17 after including the balance carried into the explanation 

 column on Oct. 1, and a credit total of $2117.17. All checks 

 and, items deposited hay$ been entered in the cash journal ex- 



