Real Estate (Land and Buildings) $38,000.00 Machinery 27,750.00 Material 11,227.60 Supplies 648.50 Goods in Process 3,984.70 Manufactured Goods 5,290.00 A cost system was desired by the management, consequently in opening new books it was necessary to provide for the needed accounts. The complete entries used to change these books from single to double entry are shown in the model journal illustrated, page 29. [Illustration: Ledger After Changing to Double Entry ] [Illustration: Ledger After Changing to Double Entry ] EXERCISE The books of the Star Coal Company, a corporation with a paid-up capital of $10,000.00, have been kept by single entry. The following facts are gathered from the books: Cash in Bank $3,500.00 Personal Accounts Debit Balances 6,500.00 Cash in Office 200.00 Personal Accounts Credit Balances 2,500.00 An inventory results as follows: Coal 3,750.00 Horses and Wagons 800.00 Furniture and Fixtures 300.00 Make necessary journal entries to change to double entry. Provide a reserve of 5% for uncollectible accounts, 10% for depreciation of horses and wagons, 10% for depreciation of furniture and fixtures. Declare a dividend of 10% and transfer balance of profits to surplus, making all journal entries to record these transactions. [Illustration: TWO HEMISPHERICAL BOTTOMS FOR 100,000-GALLON ELEVATED TANKS RIVETED TOGETHER, SHOWING CLASS OF WORKMANSHIP NECESSARY ON WORK OF THIS CHARACTER Chicago Bridge & Iron Works, Chicago, Ill. ] TRIAL BALANCES AND COMPARATIVE STATEMENTS =14.= The construction of comparative statements is one of the most important duties of the bookkeeper. The ability to properly classify the accounts that make up trading and profit and loss statements, and balance sheets is a valuable asset to the bookkeeper who aims to advance to the highest position. Statements of this kind, unless properly classified, are unintelligible to the average business man. A mere statement of the balances of the ledger accounts arranged without respect to their relationship, one to the other, may show that the ledger is in balance, but does not present information of special value to the manager of a business. What he wants—and expects—is a statement from which he can readily extract desired information; it must emphasize the salient points.