Practical accounting problems Volume 1 ; theory, discussion, and solutions - Tapa blanda

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. 1922 Excerpt: ...142,089.87 $421,042.84 Notes Payable-Contain $45,000 demand notes held by bank without collateral. The notes are endorsed by the president of the company in his individual capacity as sole owner of a manufacturing plant in Connecticut; the balance were issued to creditors for merchandise; they are due February 15. Claims-Amount compensated by reserve is subject to lawsuits for collection; this is true, in fact, of the whole amount of the claims account. Counsel reports the basis to be of a doubtful value from the legal standpoint. Accounts Receivable-Amount compensated by reserve is still in doubt, with the presumption against collection. The control account conceals, besides, $5,000 of advances to a promoter operating in China. This may be lost. Notes Receivable-Contain a $3,000 note given by a former employee of the company, to cover theft of material; the note is due in February, 1919, but information is at hand that it will probably not be paid. Development Expenses. Foreign Branches-Has been carried as an asset for over one year. It represents, in reality, advances to foreign correspondents for the purpose of establishing agencies." The war in Europe having killed all prospects, the whole amount is undoubtedly worthless. General-Some of the goods shipped in prior periods are still held at Pacific Coast points for transshipment to India, China, and Japan. Demurrage, storage, handling charges, etc., have accumulated to date to the extent of $8,500. The liability has not been recorded but must be met. The goods themselves are subject to losses which, however, cannot be estimated. The unpledged portion of the inventory contains sundry lots which cannot be pledged, owing to their undesirable nature. It is doubtful that some of them could be sold for co...