BOOKKEEPING FOR GRAIN ELEVATORS. 33 
To account for all the merchandise purchased and to show this loss as an expense 
of operation. 
Debit. (5) Credit. 
000 Loss and Gain 
Storage Liability 000 
To set up on the books the liability arising from outstanding storage tickets and 
to reflect its result in the net income. 
Debit. (6) 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 insurance to its actual amount. 
Debit. (7) Credit. 
000 Printing, Stationery, and Office 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 
