Purchased goods on his own account $3,000.00 Sold goods on commission 5,000.00 Sold his own goods 2,500.00 Commissions earned 150.00 Received cash for goods sold 6,250.00 Paid expenses on consignments 37.50 Rendered account sales with which cash was remitted to cover net proceeds 2,712.50 Rendered account sales on which net proceeds were credited to the account of principals 2,000.00 Paid cash on account of goods purchased 2,200.00 Paid cash for sundry expenses 75.00 Inventory of goods owned at the close of the period 800.00 Prepare trading and profit and loss accounts and balance sheet. STORAGE =58.= Storage, as here used, is the business of furnishing storage for merchandise on its way to market until such time as it is sold and delivered to the purchaser. The source of supply and customs of the trade in certain classes of merchandise render the question of storage an important one. This is particularly true of the grain trade. Large buyers of grain, located in important distributing centers which have become the principal grain markets owing to their manufacturing or transportation facilities, locate their buyers in the grain producing sections to buy grain from the producers. At these points are located small grain handling plants or elevators, where the grain is received from the farmers and shipped to the distributing centers. Here, extensive storage facilities must be provided, that these shipments, aggregating enormous quantities of grain, may be held until the condition of the market is favorable for selling. If it were not for this custom of storage it would be necessary to market all of the grain—except the small quantities stored by the farmers—soon after harvest, which would result in lowering prices to all concerned, from the farmer up. These conditions have resulted in the organization of warehousing companies to provide storage for the owners. When grain, or other classes of merchandise, is received for storage a warehouse receipt is issued, and the merchandise will not be delivered without the presentation of the receipt. Warehouse receipts are negotiable and since they are evidence of the ownership of certain merchandise stored in a warehouse, bankers will loan money to the owner and accept the warehouse receipt as security.