Classification of Corporations--Joint Stock Company--Creation of Corporation --Stockholders--Stock Certificates--Capitalization--Capital and Capital Stock --Stock Subscriptions--Management of Corporations--Powers of Directors and Officers--Dividends--Closing Transfer Books--Sale of Stock Below Par--Corporation Bookkeeping--Books Required--Opening Entries--Changing Books from Partnership to Corporation--Stock Donated to Employes--Reserves--Computing Sinking Funds--Premium and Interest on Bonds--Manufacturing and Cost Accounts--Factory Assets--Factory Expenses--Balance Ledger THE VOUCHER SYSTEM OF ACCOUNTING _By James B. Griffith_ Page 273 Use of Vouchers--Voucher Checks--Journal Vouchers--Voucher Register--Operation of System--Auditing Invoices--Executing Vouchers--Paying, Filing, and Indexing Vouchers--Voucher File--Demonstration of System--Voucher Accounting--Unit System --Combined Purchase Ledger and Invoice File--Private Ledger --Private Journal--General Ledger--Manufacturing Accounts --Charting Accounts--Chart of Trading Business--Chart of Manufacturing Accounts--Examples of Charts--Explanation of Charts REVIEW QUESTIONS Page 325 INDEX Page 345 [Illustration: THE ACCOUNTING DEPARTMENT IN THE OFFICES OF THE GREEN FUEL ECONOMIZER COMPANY, MATTEAWAN, N. Y.] THEORY OF ACCOUNTS PART I Like every other special branch of study, the Theory and Practice of Accounts has its own special vocabulary of technical terms. In all literature of accounting and business methods in general, these terms are frequently employed; and the student will find it not only advantageous, but in fact absolutely necessary, to familiarize himself thoroughly with their use. The commercial terms and definitions in the following list are the ones most commonly used in business. Great care has been exercised in preparing a list that is practical and in making the definitions clear. DICTIONARY OF COMMERCIAL TERMS _Acceptance_--When a draft or bill of exchange is presented to the payer, he writes across the face "Accepted" or "Accepted for payment at ..." and signs his name. It is then termed an acceptance. _Accommodation Note_--A note given without consideration of value received; usually done to enable the payee to raise money. _Account_-- (_a_) A statement of debits and credits. (_b_) A record of transactions with a particular person or persons, or with respect to a particular object. _Account Books_--Books in which records of business transactions or accounts are kept. _Account Current_--An account of transactions during the present month, week, or other current period. An open account. _Account Sales_--A statement in detail covering sales, expenses, and net proceeds made by a commission merchant to one who has consigned goods to him. _Accrued; Accrued Interest_--