Cash $535.62 Accounts Receivable 57.63 -------- $593.25 Merchandise Inventory 1,042.77 1,042.77 1,636.02 -------- _Liabilities_ Sundry Accounts Payable 149.02 149.02 -------- Present Worth $1,487.00 [Illustration: Closing Entries, Trading and Profit and Loss Accounts] EXERCISE =15.= On a certain date the assets and liabilities of John Noble are as follows: ASSETS: cash, $450.00; inventory, $762.50; due from sundry debtors--John Lane $30.00, Henry Watson $17.60, D. B Olin $27.60. LIABILITIES: due sundry creditors--Perkins & Co. $90.00, F. C. Watkins $54.00. The following transactions take place: April 1: Sold to Wm. Aultman on account, 1 bbl. apples $4.50; 10 bu. corn @ 48c. Bought from Mills & Sweet, 114# cheese at 11c. April 2. Sold to Henry Watson on account, 10 bu. potatoes @ 75c; D. B. Olin paid his account in cash; sold for cash, miscellaneous merchandise $17.20. April 3. Sold to Andrew Nevin on account, 20# lard at 11c, 14-1/2# ham at 15c; sold to Homer Miller on account, 1/4 bbl. flour, $1.55, 3 doz. eggs @ 26c, 20# sugar @ 5-1/4c; sold for cash, miscellaneous merchandise $18.60. April 4. Paid Perkins & Co., cash 90.00; sold Marvin Stetson 1 bbl. apples $4.50, 2# coffee @ 40c, 1# tea @ 60c; Wm. Aultman paid his account in full; sold for cash, miscellaneous merchandise $16.30. April 5. Bought from Geneva Milling Co. 100 bbls. flour @ $3.25; sold to D. Wiseman 2 bbls. salt @ $1.10, 10# sugar @ 5-1/2c; sold for cash, miscellaneous merchandise $14.90. April 6. Sold F. C. Watkins 20 bu. corn @ 35c, 10# butter @ 30c, 1 vinegar cask $1.50; paid F. C. Watkins cash $42.50; Henry Watson paid his account in full; paid 1 month's rent $35.00; paid clerk hire $7.00; sold for cash, merchandise $27.90. At the close of business, the merchandise inventory was $987.75. Using journal, cash book, and ledger, open the books, enter and post these transactions Make a trial balance and a balance sheet, showing present worth. Does the business show a profit or a loss, and how much? How is the amount determined from the balance sheet? Close the books into the proper accounts, showing gross and net profit and loss. To what account is the profit or loss transferred? RETAIL COAL BOOKS =16.= The proprietor wishes to retire from the grocery business, and, having an opportunity to sell the stock at inventory value, does so, receiving $1,042.77 in cash. He immediately pays sundry accounts payable, $149.02. He collects all accounts receivable except the amount due from L. B. Jenkins, $24.45. This leaves him with assets consisting of cash $1,462.55; due from L. B. Jenkins, $24.45; and no liabilities.