BOOKKEEPING F0R'^G!RM2S" ELEVATORS. 33 



To account for all tho mcrfhanaiso piircliaseil and to hIiow tlii.s loss as an expense 

 of operation. 



Debit. (.')) Crcfm. 



000 Ijoss and Gain 



Storage Liability 000 



To set up on the books the lialnlity arising from outstanding storage tickets and 

 to reflect its result in tho net income. 



Debit. (f.) Credit. 



000 Insurance Expense 



Prepaid Insurance 000 



To place in the expense account the amount of insurance consumed during the 

 period, and to reduce the asset of prepaid insiirance to its actual amount. 



Debit. (7) Credit. 



000 Printing, Stationery, and Oflice Supplies 



Printing and Stationery Inventory 000 



To show the expense for this item and to reduce the asset account to the actual 

 value of supplies on hand. 



Debit. (8) Credit. 



000 Salaries and Wages 



Accrued Salaries and Wages 000 



To show the expense in the period in which it accrued and to set the amount up 

 as a liability on the books. 



Debit. (9) Credit. 



000 Rent and Taxes 



Accrued Rent and Taxes 000 



(See entry No. 8.) 



Debit. (10) Credit. 



■ 000 Interest 



Accrued Interest on Notes Payable 000 

 (See entry No. 8.) 



Debit. (11) Credit. 



000 Depreciation — Plant 



Reserve for Depreciation — Machin- 

 ery 000 

 Reserve for Depreciation — Build- 

 ings . 000 

 Reserve for Depreciation — Office 

 Furniture and Equipment 000 

 To show the expense arising from depreciation on the books and to reserve an 

 amount out of the year's income to cover it. 



Debit. (12) Credit. 



000 Loss from Bad Accounts 



Reserve for Doubtful Accounts 000, 



To reserve out of the income of the period an amount estimated to cover the loss 

 which will accrue from credits extending during the period. 



Debit. (13) Credit. 



000 Accrued Interest on Notes Receivable 



Interest 000 



