$19052.42, sales of grain. 2) 2982.02, net gain of firm. $3183.29, excess received by Brown, or the amount due from Brown to Hart. EXPLANATION.-Credit Brown for the $12000 cash sent by him to Hart, and debit Hart for the same amount. Credit Hart for the $14382.50 paid by him for grain, and debit Grain for the same amount. Credit Grain for $15600, the price received by Brown for the 40 car loads of corn, and debit Brown for the same amount. Credit Hart for the $438.20 expenses paid by him, and debit Grain for the same amount, as an element of its cost. Credit Brown for the $1,249.70 freight paid, and debit Grain for the same amount as an added element of its cost. Now under the dissolution agreement, debit Hart for $1128.42, the inventory value of the grain taken by him, and credit Grain for the same amount, as having virtually been sold to Hart. Debit Brown for $2324, the inventory value of the oats taken by him, and credit Grain for that amount, as having virtually been sold to Brown. Having now disposed of all the grain, the difference between its cost, Dr., and the returns from its sales, Cr., will show the gain or loss. Foot the debits, and find the total cost to have been $16070.40; foot the credits, and find the total receipts from sales to have been $19052.42, showing a net gain of the difference, or $2982.02, one-half of which, or $1491.01, should go to the credit of each partner. Debit Grain for Hart's one-half of the gain, $1491.01, and credit Hart for the same amount, to which he is entitled by the partnership agreement; and for like reasons, debit Grain for $1491.01, as Brown's one-half of the gain, and credit Brown for the same amount, as his one-half of the gain, and find that while Brown is entitled, as shown by his credits; to only $14740.71, he has actually received, as shown by his debits, $17924, or that he has received the difference $3,183.29, more than he is entitled to receive. Also find that while Hart is entitled, as shown by his credits, to receive $16311.71, he has actually received, as shown by his debits, only $13128.42, or that he has received the difference, $3183.29, less than is due him. If then, Brown pays the excess, $3183.29, that he has received, over to Hart, the accounts of both, as well as the Grain account, will be in balance, and the obtained results will be shown as follows: 1st. Net gain, $2982.02. 2d. Net gain of each, $1491.01. 3d. Brown owes Hart $3183.29. 2. Hopkins and Hawley formed a partnership Sept. 1, 1886, for two years, and agreed that the gains or losses in the business should, on settlement, be adjusted according to the average investment. Sept. 1, 1886, Hopkins invested $6250, and Hawley invested $4500. Three months later each invested $1750. On Mar. 1, 1888, Hopkins drew out $3000, and Hawley invested $2000. How should a gain of $9400 be divided? 3. Three boys bought a watermelon for 244, of which price Charles paid. 94, John 84 and Walter 74. Ralph offered 244 for one-quarter of the melon, which offer was accepted and the melon divided. How should the 244 received from Ralph be divided among the other three boys? 4. At the time of closing business, the resources of a firm were: Cash, $931.50; Mdse., per inventory, $13196.25; notes and accounts due it, $8154; interest on same, $211.50; real estate, $11150. The firm owed, on its notes, acceptances and bills outstanding, $7142, and interest on the same, $348.50; and there was an unpaid mortgage on the real estate of $2500, with interest accrued thereon of $88.50. If the invested capital was $22500, what was the net solvency or net insolvency of the firm at closing, and how much has been the net gain or net loss? 5. Gray, Snyder and Dillon entered into partnership with equal investments, and agreed that, in case no withdrawals of capital were made, and no added investments made by either, they should share the gains or losses equally; but in case either party increased or diminished his investment, the gains or losses should be shared according to average investment. At the end of 6 months Gray withdrew $2000, and Snyder $3000, and Dillon invested $5000. Three months later Gray invested $1000, and Snyder and Dillon each withdrew $1500. At the end of the year they dissolved the partnership, having as total resources, $51000; total liabilities, $16500. No interest account having been kept, what was the present worth of each at closing, and what was the gain of each, the whole gain being $6900? 6. Phelps, Rogers, and Wilder enter into partnership for five years. Phelps invested $10000; Rogers, $20000; and Wilder, $30000. At the end of each year Phelps withdrew $1000; Rogers, $1600; and Wilder, $1800. Upon final settlement, the value of the, partnership property was $57200. How much of this sum should each receive? 7. Apr. 1, 1884, Smith and Jones commenced business as partners, Smith investing $8000, and Jones $C000; six months later each increased his investment $1500; and on Jan. 1, 1885, Brown was admitted as a partner with an investment of $2400. On Oct. 1, 1885, each partner drew out $1500; on Apr. 1, 1886, Smith and Jones each drew out $1000, and Brown invested $6000. On Jan. 1, 1889, it was found that a net gain of $37500 has been realized. What was the share of each? If by agreement Smith, at final settlement, was to be allowed $1200 per year for keeping the books of the concern, what was the present worth of each? 8. Burke, Brace, and Baldwin became partners, each investing $15000, and each to have one-third of the gains or sustain one-third of the losses. Burke withdrew $2100 during the time of the partnership, Brace $1800, and Baldwin $2000. At close of business their resources were: Cash, $3540; Mdse., $14785; notes, acceptances, and accounts receivable, exclusive of partner's accounts, $16250; real estate, $28500. They owed on their outstanding notes $8125, and on sundry personal accounts $1950. Find the present worth of each partner at closing. 9. Parsons and Briggs became partners Apr. 1, 1887, under an agreement that each should be allowed 6% simple interest on all investments, and that, on final settlement, Briggs should be allowed 10% of the net gains, before other division, for superintending the business, but that otherwise the gains and losses be divided in proportion to average investment. Apr. 1, 1887, Parsons invested $18000, and Briggs $4000; Jan. 1, 1888, Parsons withdrew $5000, and Briggs invested $3000; Aug. 1, 1888, Briggs withdrew $1500; Dec. 1, 1888, the partners agreed upon a dissolution of the partnership, having resources and liabilities as follows: Cash on hand and in bank...$ 1101.05 Notes and acceptances... Accounts receivable... 16405.50 Outstanding accounts. Int. accumulated on same. 287.41 9716.55 $6520.00 21246.50 1200.00 Mdse. per inventory- - - If, of the accounts receivable, only 80% prove collectible, what has been the net gain or loss? What has been the gain or loss of each partner? What is the firm's net insolvency at dissolution? What is the net insolvency of each? 10. Bradley and Maben became partners July 1, 1885, under a 3-year's contract which provided that Bradley should have $1500 each year for superintending sales, and that Maben should have $1000 each year for keeping the books of the concern, and that these salaries should be adjusted at the end of each year and before other apportionment of gains or losses was made. July 1, 1885 each invested $12500. Six months later each increased his investment $5000. July 1, 1886, Bradley drew out $3600, and Maben drew out $3000. Oct. 1, 1886, Bradley withdrew $1000 and Maben invested $2000. July 1, 1887, each drew out $1500. At the expiration of the time of the contract the resources exceeded all liabilities $47280. What was the gain of each, and the present worth of each ? 11. Clark, Wilkin and Ames bought a section of Kansas land for $6400, of which Clark paid $1600, Wilkin $2000, and Ames the remainder. Wheeler offered $4000 for one-fourth of the land; the offer was accepted, and each of the four had set apart a quarter-section for his exclusive use. How shall the money received from Wheeler be divided? 12. A, B, and C, formed a copartnership for 2 years, investing equal sums, with the agreement that each shall receive interest at the rate of 6% on all sums invested, be charged interest at the same rate on all sums withdrawn, and the gains or losses shown on final settlement be apportioned according to average not investment. Three months after the formation of the partnership A drew out $1200, and six months later B and C each drew out $1000, and A invested $6000; at the end of the first year each drew out $500. On closing the affairs of the firm, the following statement was made: net gain, $15000; present worth, $75000. What was the original investment of each? What was the present worth of each at the time of dissolution? What was each partner's share of the gain? A and B became partners for one year; A investing of the capital, and B; the agreement being that the gains or losses shall be apportioned according to average net investment, and that each partner be allowed 6% interest per annum on all investments, and be charged interest at that rate on all sums withdrawn. At the end of the year the firm had as resources: Mdse., per inventory, $21460; real estate, $15000; cash, $1950; bills receivable, $13146.50; interest accrued on the same, $519.25; accounts due it, $11218.50; store furniture, $1320; delivery wagons and horses, $2100. The liabilities were: mortgage on real estate, $7000; interest on same accrued, $210; notes outstanding $26950; interest accrued on same, $811.75. The firm owes Barnes, Clay & Co., of Boston, $33560. It is found that 33 per cent. of the accounts due the firm are uncollectible. If the firm's losses during the year have been $12000, how much was invested by each partner? What is the present worth or net insolvency of the firm, and of each partner, at closing? 14. Clay and Hard commenced business Nov. 1, 1883, with the following resources: Clay invested cash.. $10000 | Hard invested Mdse., valued at_ _ $13500 12000 Cash 3000 Marble fixtures, valued at...----- 1500 Good will of trade, valued at... 7500 The firm assumed an outstanding mortgage on the store of $6000, and a note made by Hard for $3000, and due without interest July 1, 1884. Jan. 1, 1884, each partner withdrew $300; May 1, 1886, Clay withdrew $2000, and Hard invested the same amount. Jan. 1, 1887, Dunn was admitted to the partnership, with a cash investment of $4500. Nov. 1, 1887, each partner invested $1000; and on Nov. 1, 1888, the partners agreed upon a dissolution, the following being shown from the ledger of the firm: Resources. Mdse., per inventory.. Cash... Accounts receivable... Real estate..... Movable fixtures and sundries, 3114.50 Due Hard for keeping the books 5000.00 It was agreed that Hard should, at the time of dissolution, be allowed $1000 per year for keeping the books of the concern. If no interest account was kept and the gains or losses be apportioned according to average investment, what are the net resources of the firm at closing? What has been the net gain or loss? What has been the gain or loss of each parter? What is the present worth of each at closing? APPENDIX. STOCKS AND BONDS. 843. Stocks is a term applied to shares in the capital stock of banking, insurance, railroad and other incorporated or joint stock companies. 844. A Stock Certificate is a written or printed instrument of a Joint Stock Company or Corporation, signed by the officers of the company, certifying that the holder of the certificate is the owner of a certain number of shares of its capital stock. A share represents simply a certain component part of the capital stock, which is usually divided into shares of $25, $50, $100, $1000. The Stock Certificate represents the number of shares specified therein. The Capital Stock of a company is the sum of all the shares issued, at their par value. The Par Value of stock is the sum for which stock is issued. The Market Value is the sum for which stock can be sold. Stocks are at par when they sell for the value written on their face. Stocks are below par when worth less than their face value, and above par when worth more than their face value. 845. The Preferred Stock of a corporation is stock on which dividends are payable before those on the original shares or common stock. Preferred Stock is usually issued to take up certain floating indebtedness of a corporation and agreed dividends are declared at certain intervals out of the net earnings, and before any dividend can be declared on the common stock. Such stock is usually issued upon the reor. ganization of railroads and consolidated joint stock companies. 846. A Bond is a written or printed obligation of government, Joint Stock Company or Corporation. It is conditioned to pay a certain sum of money at a specified time and at an agreed or fixed rate of interest, payable at regular intervals. Bonds of business corporations are usually secured by mortgage on their real estate. Municipai Bonds are issued by a vote of the people or their representatives, and for the payment of which a Sinking Fund is accumulated by a yearly rate per cent. levied on all the real property within the limits of the municipality. 847. Government Bonds are bonds issued by the general government. Their names are usually derived from the interest they bear and the time when due; as 4-Twenties, 4-'91's, U. S. Cur. 6's.'97, etc. 848. A Coupon Bond is one with certificates attached showing amount, date of interest and when due. When paid the coupons are detached and canceled as vouchers. 18 |