1, West Coast Lumbermen's Ass*n SEATTLE. WASH. NEW YORK CITY PORTLAND. ORE. UNIFORM COST ACCOUNTING SYSTEM^ (Price $25.00) DEVISED BY John G. Mcintosh — J. G. Mcintosh & Co., Certified Public Aocountants, Seattle, Wash, J. P. Robertson — Smith, Robertson & Moorhouse, Certified Public Accountants, Seattle, Wash. Paul R. Chaney — Whitfield, Whitcomb & Co., Certified Public Accountants, Portland, Ore. C. D. Moore — ^The Emerson Engineers, New York. COST ACCOUNTING COMMITTEE F. H. JACKSON, Clear Lake, Wash. W. B. NETTLETON, Seattle, Wash. E. A. POYNEER, Everett, Wash. C. H. WATZEK, J. G. McINTOSH, Seattle Wash. J. P. ROBERTSON, Seattle, Wash. P. R. CHANEY, - Portland, Ore. C. D. MOORE, Wauna, Ore. Seattle, Wash. Montgomery Printing Co.. Seattle. Wash. Copyrighted, March 1919 ■i'4H ii*awA « jiaiHiadfJiijJI iauoD Ih'^W uno>nwj ^^ MaT8Ya D/IIT/I(J033A T8C>3 U VU; r^^0J)^7^ Agric . - Forestry. M airrl^ibrary fi^,. FOREWOED. This publication is for the purpose of presenting to the lumber industry, the West Coast Lumbermen's Association Uniform Cost Accounting System which is built up upon correct accounting practice and sound economic principles. General use of this system within the industry will, through composite ana- Ij^ses, accurately reflect fundamental conditions, enabling the industry to so regulate its merchandising that it will not be the last of staple commodities, in an upward swing on a rising market nor the first on the downward swing, never rising relatively as high as other staples, and always falling relatively lower as has been the case with lumber in the past. The system will make it possible for the industry as a whole to appear be- fore any tribunal and obtain justice, whether in the regulation of prices, re- turns ion capital investment, dealing intelligently with the labor problem, or in the enlighteiunent of the public in matters of industrial economics. Operators will know definitely what returns must be obtained to sustain the industry in a manner commensurate with the welfare of communities which are largely dependent upon lumber manufacturing for their prosperity and civic pro- gress. The system eliminates guess-work from month to month as to the final out- come of the year's operation in profit and loss statements. Each concern using the West Coast Lumbermen's Association Uniform Cost xiccounting System will know the industry's composite cost of lumber through its various phases or steps of manufacture, and may compare such costs with similar data for the individual operation. Each concern using the system will know in gr^de percentage what consti- tutes the typical log and returns therefor, which may be compared with its particular results. The system will enable a concern to determine its correct profits as a result of operation, excluding capital returns, for the determination of income and excess profit taxes. It will render very much less expensive the actual installation of an ac- counting system, whether the work is done by professional acounting concerns or by the company itself. It will facilitate the auditing of a company's books by certified public ac- countants. Correct accounting methods and properly authenticated reports have meant much to mills in the negotiation of property sales, the negotiation of credit, the adjusting of fire losses, and the safe- guarding against financial loss through clerical mistakes or through fraud. The adoption of this system will result in a saving in stationery expense, making it possible to keep in a central place, a supply of standard stationery that can be drawn upon as needed. The system will enable the operator to at all times know how his invest- ment per thousand feet of annual output compares with that of the industry as a whole. Similar comparison is accurately possible as to all cost segregations apply- ing to labor, supplies and other expense. The system explains the handling of each account in detail. Entries are followed through the books to the condensed operating statement and balance sheet. Each form is fuly explained as to entries to be made in each column and the proper procedure to be followed in transferring to the general ledger and sub- sidiary ledger. Arrangement of forms and the numbering thereof provide for the expansion and elaboration of the system for such operations as require it. The forms also provide for the elimination of detail in small operations with- out altering the general plan or results. The standard classification of this system calls for nineteen segregations of logging costs, but the small operator may carry only such items as logging, rail- road,, sundries, depreciation and stumpage, which, if segregated, as between labor, supplies and other expense, as outlined, will be wholly comparable in to- tals with other operations which may use the complete classification. Under manufacturing costs, standard or complete classification calls for eighteen segregations. Small operators, however, may find it more desirable to carry only sawing, yard, sundries and depreciation, which, if built up as to out- lined instructions, will result in entirely comparable totals. It should be kept in mind that the system was designed in application to the industry as a whole and not to a particular operation. It, therefore was nee- .?i."tn5;; nmi^ essary to adopt certain fundamental principles as standard, including the fol- lowing : The setting up of logging as a distinct operation. The carrying f. o. b. sales and underweights as separate returns f6r pro- duct. The carrying of shipping as a separate cost. The carrying of interest and discount as a financial cost. The West Coast Lumbermen's Association Uniform Cost Accounting Sys- tem has been designed by experts, — experienced specialists in lumber account- ing practice. The Association desires to make this acknowledgment of the conscientious and intelligent effort of the men who have given of their experience, time and thought to the perfecting of the Uniform Cost Accounting System — to Mr. John G. Mcintosh, C. P. A., of John G. Mcintosh & Company of Seattle, Wash.; Mr. J. P. Eobertson, C. P. A., of Smith, Robertson & Moorhouse, Seattle, Wash.; Mr. Paul R. Chaney, C. P. A., of Whitfield, Whitcomb & Company, Portland, Oregon ; and Mr. C. D. Moore of The Emerson Engineers, New York. WEST COAST LUMBERMEN'S ASSOCIATION Robert B. 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I (5 « c Z Form \G-f\ Actual- 3i2e: 7-x U' ■^ii •>- e c r c c — c T „ K "^ )r 5- 5: tt M ir t 1 < 8 N eg ■a CM 8 CO % '~ 1 ■ >. ~~ 1 — / £ cr V *J « X ry s |5 i) a ^ s tJ ^ N "0 ^ M S 0) ^ M ^ i^ W « i K ij J 1 « n C 4 :2 I/' ; in I J T -- K 1 n I ; - h ^ — ; r J' 'W- ^ N ^ \U » S r O 1 L- J) % « > > 1 ^ X £ 13 c 3 (U '^ (0 tO 2 *J 0" J i c s V E 13 t •J a c > D X c D 1 (A X iE c UJ r c a. s 01 £ \ X J c f 1 { (fl V ^ c? J) ^ )S a \n cf ^ Q ^ n ^ r •*> z u t > 0- j: h ^j TS ' hJ ^ E n I Form \e-B AcTUflU SiziE 7 x. 11 ^ WEST COAST LUMBERMEN'S ASSOCIATION UNIFORM COST ACCOUNTING SYSTEM FORMS 1. Cash Receipts and Settlement Journal. 2. Check Register. 3. Journal and Voucher Register. 4. Sales Journal. 5. Sales Analysis. 6. Distribution. 7. Journal Voucher. 8. Insurance Register. 9. Prepaid Supplies and Expenses Register. lOA. Accounts Receivable. lOB. Accounts Receivable. IOC. Accounts Receivable. 15. Pay Roll. 16A. Time Sheet (Camp). 16B. Time Sheet (Mill). 30. Condensed Comparative Balance Sheet. 31. Condensed Operating Statement. 32 A. Detailed Operating Statement (1). 32B. Detailed Operating Statement (2.) 32C. Detailed Operating Statement (3 ) n WEST COAST LUMBERMEN'S ASSOCIATION UNIFORM COST ACCOUNTING SYSTEM CHART OF ACCOUNTS. ASSETS. No. Account. lA Petty Cash Fund. IB Cash (Undeposited). IC Bank. ID Bank. 2 Accounts Receivable. 3A Notes and Acceptances Receivable. 3E Notes and Acceptances Endorsed. 4A Inventories — Logs (Woods, Landing, Booming, Ground, Mill Pond.) 4B — ^Lumber. 4C —Lath. 4D —Wood. 4E — Box Factory. 4F —Cut Up Factory. 4G — Shingles. 4H — Stock of Supplies. 41 . — Store Merchandise. 4J — Camp Commissary. 4K —Hotel. 4L — Mill Mess House.' 4M — Camp Mess House. 4N — Camp Wood. 5A Investments — U. S. Liberty Bonds. 5B — Stocks and Bonds. 5C — Real Estate (non-operating). 9 Sinking Fund. 10 Timber and Timber Land. IIA Real Estate— Mill Site. IIB — Townsite and Others. 12A Manufacturing Plant — Buildings. 12B — Equipment. 13 Logging Equipment. 14 Railroad. 15 Furniture and Fixtures. 16 Stock in Subsidiary Companies. 20 Unexpired Insurance Premiums. 21 Prepaid Supplies and Expenses. 22 Temporary Spurs. CHART OF ACCOUNTS— Continued. LIABILITIES No. Account. 30A Pay Roll. 30B Time Orders Payable. 30C Commissions Payable. 31A Vouchers Payable. 31 B Accounts Payable. 32A Notes and Acceptances Payable. 32B Accrued Interest Payable. 32C Collateral Notes Payable. 32E Notes and Acceptances Endorsed. 33 Unredeemed Coupons. 34 Accrued Taxes. 40 Reserve — For Bad and Doubtful Accounts and Notes. 41 — For Anticipated Discounts. - 42 — For Freight. 44 — For Depreciation. 45 — For Anticipated Repairs. 46 — For Shut Down Overhead. 49 Mortgage Bonds. CAPITAL. 50 Capital Stock. 51A Surplus — 51B — Timber and Timber Land Appreciation. 52 Profit and Loss. CHART OF ACCOUNTS— Continued. REVENUES. No. Account. 60A Logs Sawn — Saw Mill. 60B Logs Sawn — Shingle Mill. 60C Logs to Others. 60D Logs Lost and Used. 61A Lumber — Rail. 61B — Cargo. 61 C — ^Local. 61D — Company Use. 061 — ^Allowances (Deduct from Sales). 62A Underweights — Lumber. 62B —Lath. 62C —Box Shooks. 62D —Shingles. 62E — Miscellaneous. 63 Lath. 64 Wood and Saw Dust. 65A Box Shooks. 65B Cup Up Factory. 67 Shingles. 68B Lumber Sales — Direct Shipments, 70A Store — Merchandise. 70B Camp Commissary. 72A Hotel. 72B Mill Mess House. 72C Camp Mess House. 72D Camp Bunli Houses. 75 Barn. 76 Power, Light and Water. 78 Rentals. 79 Floating Equipment. 85 Outside Services. 86 Stumpage — Profit and Loss. 87 Sundry Income. 88 Discounts Taken. 89 Interest Received. CHART OP ACCOUNTS— Continued. PURCHASES. No. Accounts. 90A Logs Sawn. 90B Logs Purchased. 93 Lath. 95A Lumber to Box Factory. 95B Lumber to Cut Up Factory. 97A Shingle Mill— Logs. 97B Shingles Purchased. 98A Lumber Purchased — Mill. 98B Lumber Purchased—Direct Shipment. OPERATING COSTS & EXPENSES CONTROLS. A Labor. B Supplies. C Expenses. D-E ' Repairs. 400 Power, Light and Water. 410 Blacksmith and Machine Shop — Mill. 420 —Camp. 500 Selling — Administrative. CHAET OF ACCOUNTS— Continued. OPERATING COSTS. LOGGING. Labor Supplies Expense Repairs Labor Material No. Account. A B C D E 100 Contract Logging. lOOA lOOB lOOC lOOD lOOE ]01 Rigging Ahead. lOlA lOlB 102 Falling & Bucking. 102A 102B 103 Yarding & Loading. 103A 103B 103D 103E 104 Wire Rope. 104B 109 Depreciation — Logging. 109C 110 Railroad. llOA HOB HOC HOD HOE 111 Spur Tracks. lllA lllB lllC 112 Water Haul. 112C 113 Other Haul. 113A 113B 113C 113D 113E 114 Booming & Rafting. 114A 114B 114C 114D 114E 115 Boom Stick Towing. 115C 119 Depreciation — Transportation. 119C 120 Salaries & Wages. 120A 120C 121 Sundry Expenses. 121C 122 Anticipated Repairs. 122C 123 Shut Down Overhead. 123C 128 Logs Lost. 128C 130 Stumpage. 130C CHART OF ACCOUNTS— Continued. OPERATING COSTS— Continued. MANUFACTURING. Repairs Labor Supplies Expense Labor Material Pond or Log Yard A B C D E 200 200-A 200-B 200-C 200-D 200-E 201 Saw Mill 201-A 201-B 201-C 201-D 201-E 202 Sorting Table 202-A 203 Dry Kiln 203-A 203-B 203-C 203-D 203-E 204 Yard — Timber Dock 204-A 205 — Transportation 205-A 205-B 205-C 205-D 205-E 206 — Piling 206-A . 207 — Rough Dry Shed 207-A 208 — Dry Sorting 208-A 209 —Finished Shed 209-A 210 — General 210-A 210-B 210-C 210-D 210-E 220 Planing Mill 220-A 220-B 220-C 220-D 220-E 221 Sizer 221-A 229 Depreciation 229-C 230 Salaries and Wages. 230-A 230-C 231 Sundry Expenses 231-C 232 Anticipated Repairs 232-C 233 Shut Down Overhead 233-C 300 Lath 300-A 300-B 300-C 300-D 300-E 310 Wood 310-A 310-B 310-C 320 Box Factory 320-A 320-B 320-C 320-D 320-E 330 Cut Up Factory 330-A 330-B 330-C 330-D 330-E 340 Shingle Mill 340-A 340-B 340-C 340-D 340-E 390 Shipping 390-A 390-B 390-C CHART OF ACCOUNTS— Continued. OPERATING EXPENSES. SELLING. No. Account. 510 Advertising. 511 Salesmen's and Selling Salaries. 512 Salesmen's Expenses. 513 Commissions. 514 Branch Expenses. ADMINISTRATIVE. 550 Executive Salaries. 551 Office Salaries. 552 Stationery, Printing & Office Supplies. 553 Rent and Light. 554 Postage, Telephone & Telegraph. 555 Ofr i^e V^ n k 556 Professional Services. 557 Sundry Expenses. 558 Fire and Boiler Insurance. 559 Liability Insurance. 561 Taxes. 562 Depreciation — Furniture and Fixtures. 570 Bad and Doubtful Debts. 571 Discounts Allowed. 572 Interest Paid. 573 Special Losses. 574 Timber Interest, Taxes and Expenses. lA— PETTY CASH FUND Dr: Or With amount of fund created to meet petty disbursements. No further entries shall be made to this account unless the fund is either in- creased or decreased. A fixed office working fund shall be established for the purpose of meeting petty disbursements. Receipted vouchers shall be obtained for all payments from the fund. When the fund gets low and at the close of each month the vouchers shall be added and fastened together and a check drawn for the exact amount. This amount shall be distributed through the Journal and Voucher Register, Form 3, the total being entered in Vouchers Payable column 31- A and charged to accounts affected. r^rrrTRq IB— CASH (Undeposited) Dr: Cr With cash on hand when books are opened. With total of cash column on Cash Receipts and Settlement Journal, Form 1. With total of deposits column on Cash Receipts and Settlement Journal, Form 1. The purpose of this account is to record all cash received (excluding petty cash fund) until deposited. If all receipts are entered immediately in the de- posits column this account will not be required. :!(] .Dot 10— BANK Dr: Or: With the balance on deposit in the bank when books are opened. At the close of each month with de- posits during the month from Cash Receipts and Settlement Journal, Form 1. At the close of each month with total of checks issued per Check Register, Form 2. An account shall be opened with each bank and numbered IC, ID, etc. :i() 2— ACCOUNTS RECEIVABLE Dr: Or: With balance of open Accounts Re- ceivable when books are opened. With total charges to accounts from Accounts Receivable, column 2, in Sales Journal, Form 4, and from Journal and Voucher Register, Form 3. With total Accounts Receivable credits from Cash Receipts and Settle- ment Journal, Form 1, and Journal and Voucher Register, Form 3. When several controlling accounts are desired, separate Ledger Accounts shall be opened, such as, 2A— Rail 2B— Cargo 2C— Local 2D — Employees, Etc. £t3dW 3A— NOTES AND ACCEPTANCES RECEIVABLE Dr: Or: With balance of Notes and Ac- ceptances Receivable on hand when books are opened. With total of column 3A Cash Re- ceipts and Settlement Journal, Form 1. With total of column 3A Cash Re- ceipts and Settlement Journal, Form 1. With Notes and Acceptances Re- ceivable charged back to customers' accounts from Journal and Voucher Register, Form 3. A Note and Acceptance Register shall be kept and reconciled with the bal- ance of this controlling account monthly, if a considerable number of notes and acceptances are handled. .t 3E— NOTES AND ACCEPTANCES ENDORSED Dr: Or: With all Notes and Acceptances, not matured, endorsed for either discount or accommodation, when books are opened. With paper discounted or endorsed during the month from Journal and Voucher Register, Form 3. Credit Notes and Acceptances Endorsed 32E. With total Notes and Acceptances discounted or endorsed, paid or charged back to customers' accounts from Journal and Voucher Register Form 3. Charge Notes and Accept- ances Endorsed 32E. Charges and credits to this accoimt are offset by credits and charges to ac- count 32E. 4— INVENTORIES (4A to 4M, inclusive, excepting 4H) Dr: Or: With physical inventory at begin- At the close of fiscal period, with ning of fiscal year. inventory shown on the debit side of this account. Accounts 4A to 4G, inclusive, shall show the quantity in feet B.M. or units. 4H— INVENTORY STOCK OF SUPPLIES Dr: Cr: With physical inventory when books are opened. With cost of supplies and materials purchased for stock. With cost of supplies and materials drawn from stock on requisition. With physical inventory when books are closed. This is a store account covering supplies and material that are not charged direct from invoice to operations but are first put in stock and later, as used, charged on requisition. It is recommended when practical that all material and supplies pass through this account. It must be cleared of any balance at close of fiscal period by either a charge or credit to operating expenses pro rata. See account 21. :'/) iUJUTJ' 4N— CAMP WOOD Dr: Or: With inventory when books are opened. With stumpage on timber used for fuel, crediting account 60D. With approximate cost per M of falling and bucking, and yarding and loading, crediting account 60D. With labor of cutting logs into fuel when done specially, direct from pay- roll through Journal and Voucher Register Form 3. With cords of fuel used by yarding and loading, railroad, mess house, and bunk-houses, etc., and chargeable to these accounts at an estimate cost suf- ficient to clear debits under Supplies. With inventory of wood at end of period at cost. This account must be cleared of any balance at close of fiscal period by either a charge or credit to operating supplies proportional to the estimated consumption of wood by the railroad, donkeys, camp mess houses, etc. ,IT 5A— INVESTMENTS U. S. LIBERTY BONDS Dr: Cr: With the cost of all U. S. Liberty Bonds when books are opened. With the cost of all U. S. Liberty Bonds purchased thereafter. With cost of Bonds sold, adjusted by any entries made to take care of amortization. Profit realized or loss taken on sale of bonds shall be credited or charged to Sundry Income Account 87, which will be closed to Profit and Loss at end of year. Interest earned shall be credited to Interest Received Account 89. When Bonds are purchased above or below par, the amount of interest re- ceived taken as income should be adjusted by amortization. a 5B— INVESTMENTS— STOCKS AND BONDS. Dr: Cr: With the book value of Stocks and Bonds other than Government when books are opened. With the cost of Stocks and Bonds purchased therafter. With book vahie or cost of Stocks. With the book value or cost of Bonds sold, adjusting by any entries made to take care of amortization. Profit realized or loss taken on sale of Stocks and Bonds shall be credited or charged to Sundry Income Account No. 87, which will be closed to Profit and Loss at end of year. Interest earned shall be credited to Interest Received, Account No. 89. When Bonds are purchased above or below par, the amount of interest re- ceived taken as income, should be adjusted by amortization. Stock in Subsidiary Companies should be recorded in account 16. 5C— REAL ESTATE— (Non-Operating) Dr: Or: With the cost or book value of all With book value or cost of Real Real Estate owned when books are Estate sold, opened. With cost of Real Estate acquired thereafter. Profit realized or Loss taken on sale of Real Estate shall be credited or charged to Sundry Income Account No. 87, which will be closed to Profit & Loss at end of year. Operating expenses and rentals shall be recorded in Account No. 78. Important properties shall have separate accounts designated as 5C1, 5C2, etc., and where there are a large number of separate parcels a subsidiary rec- ord should be kept. .r.)-^ii;:*0 9— SINKING FUND Dr: Cr: With balance of Sinking Fund when books are opened. With subsequent deposits or invest- ments. With payments to retire indebted- ness, or with proceeds of investments to be immediately used in retiring in- debtedness. Profit or Loss on sale of Sinking Fund investments shall be debited or cred- ited to this account and credited or debited to Sundry Income 87. 10— TIMBER AND TIMBER LAND Dr: Cr: With feet and book value of Stump- age and Timber Land owned when books are opened. With feet and cost of all purchases thereafter. With feet and book value or cost of all timber disposed of. Any profit realized on Stumpage shall be carried to Stumpage Profit & Loss, account No. 86, which shall be analyzed at the end of fiscal or calendar year for the purpose of Income Tax return. This account shall be detailed in subsidiary records to show description, species, cruises, etc. For an accurate accounting on timber investments the difference between the cruise and production must be taken into consideration. riff IIA— REAL ESTATE— MILL SITE Dr: Or: With book value when books are With book value or cost of land opened. sold. With cost of additional land for plant purposes. .bi<>8 IIB— REAL ESTATE— TOWN SITE AND OTHER Dr: Or: With book value when books are opened. With cost of acquirements there- after. With cost of additions, betterments, improvements and assessments. With book value or cost of Real Estate sold. With book value or cost of build- ings or improvements abandoned or sold. Difference between income from sale of property and value at which it was taken into account shall be carried to Sundry Income, account No. 87. Important properties shall have separate accounts designated as 11-Bl, 11-B2, etc. In cases where there are a large number of buildings there should be sub- sidiary records. :iO .Hbi 12A— MANUFACTURING PLANT— BUILDINGS Dr: Cr: With book value when books are With book value or cost of buildings opened. torn down or abandoned. With cost of new buildings acquired or constructed thereafter. With cost of additions, betterments and improvements. Separate accounts should be kept for each building or group of buildings and numbered 12A1, 12A2, etc. 12B— MANUFACTURING PLANT— EQUIPMENT Dr: ' Cr With book value when books aro With book value or cost of equip opened. ment sold or abandoned. With cost of acquirements there- after. With cost of additions, betterments and improvements. Separate accounts should be kept for each group of machines and equip- ment such as saw mill, planing mill, horses, etc., and numbered 12B1, 12B2, etc. 13— LOGGING EQUIPMENT Dr: Or; With book value when books are With book value or cost of equip- opened. ment sold or abandoned. With cost of acquirements there- after. With cost of additions, betterments and improvements. Separate accounts should be kept for each class of equipment such as don- key engines, tools, camp buildings, etc., and numbered 13A, 13B, etc. 14— RAILROAD Dr: Cr: With book value when books are With book value or cost of equip- opened. ment sold or abaridoned. With cost of acquiremeuts there- after. With cost of additions, betterments and improvements. Separate accounts should be kept for each class of facility such as, main line, rolling stock, tools, spur steel, buildings, etc., number 14A, 14B, etc. .-.^T 15— FUENITURE AND FIXTURES Dr: Or: With book value when books are With book value or cost of furni- opened. ture or fixtures sold or abandoned. With cost of fixtures acquired there- after. lO 16— STOCK IN SUBSIDIARY COMPANIES Dr: Or: With book value or cost when books With book value or cost of stock are opened. disposed of. With additional investments. -ii> .DOiXyo 20— UNEXPIRED INSURANCE PREMIUMS Dr: Or: With unexpired premiums when books are opened. With premiums paid or payable. With the total of monthly pro rata columns for respective months from the Insurance Register, Form 8, charg- ing account 558. The purpose of this account is to control the Unexpired Insurance Prem- iums as detailed in Insurance Register, Form 8, and the balance should be reconciled periodically. *dil fiJtfliQiq 21— PREPAID SUPPLIES AND EXPENSES Dr: Cr: With items of supplies and expenses paid or payable in advance when the books are opened. With similar items incurred there- after. With total of monthly pro rata for respective months as shown by Pre- paid Supplies and Expense Register, Form 9. The purpose of this account is to distribute the charges for operating ex- penses, which benefit more than one month, over the period, during which such benefit accrues. Chargeable to this account shall be expenses paid in advance such as taxes, licenses, rent, etc., and supplies such as wire rope, mill saws, etc. This ac- count shall control Prepaid Supplies and Expenses as detailed in Register Form 9. ^^f Miiub Jbohoi] 22— TEMPOEARY SPURS Dr: Cr: With labor clearing right of way, With pro rata charge to lllC dur- grading, laying and removing tracks, ing operating months, etc. (Falling and Bucking prelimin- ary to clearing right-of-way should be charged account 102.) With material and supplies used in building and removing temporary spur tracks, such as new ties, explosives, small tools, bolts, spikes, etc., (steel rails, frogs, switches, and connections should not be charged this account, but should be capitalized under Rail- road, account 14.) In extensive operations the cost of temporary spurs should be charged to this account and transferred to lllC monthly during the operating period preferably on a per M basis. An individual record should be kept for each Tem- porary Spur constructed. .AiiU' U'*oqo ■.,: r Vmfl 10 i ad iidi -gaiiub \idiiiom Ottl oi bQiia^da^'ii baa imrc .bodou'itaj: loq 30A— PAY ROLL Dr: Or: With charges from Check Register, Form 2. With all deductions appearing on Pay Roll, from Journal and Voucher Register, Form 3. With balance due for Pay Roll when books are opened. With amount of Pay Roll as entered in Journal and Voucher Register. Form 3. // &<i 30B— TIME ORDERS PAYABLE Dr: Cr: With Time Orders paid during month, from Check Register, Form 2. With Time Orders outstanding when books are opened. With Time Orders issued thereaf- ter, from Journal and Voucher Regis- ter, Form 3. Time Orders (Time Checks) are issued to employees between regular pay- days, ordinarily by time-keepers or foremen in lieu of regular pay roll or other checks by General Office, and are usually issued at places distant from General Office. 30C— COMMISSIONS PAYABLE Dr: Cr: With coimnissions paid from Check Register, Form 2. With total commissions payable from Cash Receipts and Settlement Journal, Form 1. With adjustment of commission items (marked 30C) from the General Ledger column on the charge side of Cash Receipts and Settlement Jour- nal, Form 1. With commission adjustments from Journal and Voucher Register, Form 3. With commissions unpaid when books are opened. With commissions earned thereaf- ter from Sales Register, Form 4. With adjustments of commission items (marked 30C) from the General Ledger column on the credit side of Cash Receipts and Settlement Journal, Form 1. With commission allowance or ad- justments from Journal and Voucher Register, Form 3. For large operations this account may be used as a control account for Commissions Payable Ledger. 1(1 31A— VOUCHERS PAYABLE Dr Cr; With total vouchers paid from' Check Register, Form 2. With adjustments from Journal and Voucher Register, Form 3. With total unpaid vouchers when books are opened. With total Vouchers Payable, from Journal and Voucher Register, Form 3. By Vouchers Payable is meant all bills paid monthly when individual ac- counts with vendors are not required and which are therefore not credited to Accounts Payable Ledger, 31B. '') nr-. 31B— ACCOUNTS PAYABLE Dr: Or With total Accounts Payable col- umn from Check Eegister, Form 2. With Accounts Payable adjust- ments, from Journal and Voucher Register, Form 3. With balance of Accounts Payable outstanding when books are opened. With total Accounts Payable col- umn from Journal and Voucher Reg- ester, Form 3. The purpose of this account is to control the Accounts Payable Ledger, the balance of which shall be reconciled each month. In cases where the number of accounts payable would not warrant a sub- sidiary ledger, individual accounts may be carried in the General Ledger and numbered 31-Bl, 31-B2, etc. JIU 32A— NOTES AND ACCEPTANCES PAYABLE Dr: Or: With total paid, from Check Regis- ter, Form 2. With renewals where entry is made in Journal and Voucher Register, Form 3. With balance of all Notes and Ac- ceptances unpaid when books are opened. With total of Notes and Acceptances issued, from Cash Receipts and Set- tlement Journal, Form 1, or Journal and Voucher Register, Form 3. A Note and Acceptance Register shall be kept and reconciled monthly with the balance of this controlling amount. All renewals shall be entered and marked ** Renewal/^ 32B— ACCRUED INTEREST Dr: Cr: With payments made, from Check Register, Form 2. With interest accrued which is in- cluded in settlements entered in Jour- nal and Voucher Register, Form 3. With balance of Accrued Interest payable when books are opened. With Accrued Interest Payable at end of each month, from Journal and Voucher Register, Form 3. 320— COLLATERAL NOTES PAYABLE Dr: Cr: With total paid, from Check Regis- ter, Form 2. With balance of outstanding Col- lateral Notes Payable when books are openedi With total notes issued, from Cash Receipts and Settlement Journal, Form 1. When notes secured by collateral are issued they shall be recorded in Cash Receipts and Settlement Journal, Form 1, charging Cash and crediting Account 320. When customer remits to bank the bank should issue a credit memorandiun for the remittance received by it showing all deductions such as freight, dis- count, shortages, etc., and a debit memorandum for the note and interest. The complete transaction shall then be entered as follows: A check shall be issued to cover debit memorandiun, charging Collateral Notes Payable 320 and Interest Paid, 572. The credit memorandum shall be entered in the Cash Receipts and Settle- ment Journal, Form 1, crediting Account Receivable 2, and charging Cash, Freight, etc., and Bank in deposit column. The practice of entering such transactions as a net amount is erroneous. ^/.(Y/ 32E— NOTES AND ACCEPTANCES ENDORSED Dr: Cr: With Notes and Acceptances En- dorsed which are paid or charged back to customers' accounts from Journal and Voucher Register, Form 3, credit- ing Notes and Acceptances Endorsed, 3E. With all Notes and Acceptances not matured, endorsed for either discount or accommodation, when books are opened. With paper discounted or endorsed during the month from Journal and Voucher Register, Form 3, charging Notes and Acceptances Endorsed, 3E. Charges and credits to this account are offset by credits and charges to account 3E. The purpose of this account is to record contingent liabilities on account of endorsements. 33— UNREDEEMED COUPONS Dr: Cr: With coupons redeemed each month from Coupon Register thru Journal and Voucher Register, Form 3. With Unredeemed Coupons when books are opened. With coupons issued during the month from Coupon Register thru Journal and Voucher Register, Form 3. The purpose of this account is to record on the books, the outstanding li- ability for Coupons or other local medium of exchange. / .8 34— ACCRUED TAXES (Real Estate and Personal Property) Dr: Or: With taxes actually paid, from Jour- With Acrued Taxes when books are nal and Voucher Register, Form 3. opened. With accruals each month, from Journal and Voucher Register, Form 3. 40— EESERVE FOR BAD AND DOUBTFUL ACCOUNTS AND NOTES Dr: Or; With bad accounts and notes ac- tually charged off, from Journal and Voucher Register, Form 3. With balance of estimated reserve when books are opened. With estimated monthly reserve, from Journal and Voucher Register, Form 3. The purpose of this account is to record the estimated reserve to provide for possible losses in collection and the amount estimated shall be based on in- dividual experience. 41— RESERVE FOR ANTICIPATED DISCOUNTS Dr: Cr: With actual cash discounts allowed, from Cash Receipts and Settlement Journal, Form 1. With estimated discounts each month, from Journal and Voucher Register, Form 3. The purpose of this account is to record the estimated liability for cash discount on Sales. This estimate shall be based on individual experience. 42— RESERVE FOR FREIGHT PLAN 1 Dr: Or; With actual freight, from Cash Re- ceipts and Settlement Journal, Form 1. With the total of underweights col- umn in Cash Receipts and Settlement Journal, Form 1, being the net excess of entries for freight in Sales Jour- nal, Form 4, over expense bills. With the total of freight outstand- ing when books are opened. With the total of actual freight column in Sales Journal, Form 4. With the total of underweight col- umn in Cash Receipts and Settlement Journal, Form 1, being the net excess of expense bills over the entries for freight in Sales Journal, Form 4. PLAN 2A With the total of estimated freight, from Cash Receipts and Settlement Journal, Form 1. With the total of estimated freight outstanding when books are opened. With the total of estimated freight, from Sales Journal, Form 4. PLAN 2B With the total underweights, from Cash Receipts and Settlement Journal, Form 1. With actual freight, from Cash Re- ceipts and Settlement Journal, Form 1. With the total of estimated freight outstanding when books are opened. With the total of estimated freight from Sales Journal, Form 4. The purpose of account 42 Reserve for Freight, is to set up the freight li- ability on delivered shipments included in Accounts Receivable Ledger. iiT 44— RESERVE FOR DEPRECIATION Dr: Cr Witli cost of abandonments and re- placements, from Journal and Vouch- er Register, Form 3. With balance of Reserve for Depre- ciation when books are opened. With estimated depreciation accrued each month, from Journal and Vouch- er Register, Form 3. An individual account should be kept with detailed classifications, such as Buildings, Equipment, etc., and numbered 44A, 44B, etc. 45— RESERVE FOR ANTICIPATED REPAIRS Dr: Cr: With actual cost of major repairs as incurred and provided for on the credit side of this account, from Jour- nal and Voucher Register, Form 3. With an amount each month esti- mated as sufficient to provide for ma- jor repairs, from Journal and Voucher Register, Form 3, charging accounts 122 or 232. The purpose of this account is to equalize over the operating period the cost of major repairs usually incurred during shut-down periods. The estimated re- serve shall be based on individual experience. Actual expenditures should be analyzed as incurred, preferably on a separate distribution sheet, and each department charged at the final closing with its share of Actual repairs, segregated as to labor and material, and this account credited. After the above transfer has been made account 45 should be debited and ac- counts 122 and 232 credited with the anticipated amounts set up for repairs. TJ la aeiuitibaoq [1 dHi^ 46— RESERVE FOR SHUT DOWN OVERHEAD Dr: Cr; With actual cost of overhead ex- penses during shut down periods, from Journal and Voucher Register, Form 3. With an amount each month esti- mated as sufficient to provide for all overhead expenses during shut down periods, from Journal and Voucher Register, Form 3, charging account 123 or 233. The purpose of this account is to equalize over the operating period the cost of all overhead expense during shut down periods. This reserve shall be based on individual experience. Actual charges should be analyzed as incurred, preferably on a separate dis- tribution sheet and charged to the respective operating accounts at the end of fiscal period, and this account credited. After the above transfer has been made account 46 should be debited and 123 and 233 credited with the amounts set up for Anticipated Shut Down Overhead. 49— MORTGAGE BONDS Dr: Or: With payments made on bonded in- debtedness. With total bonded indebtedness at time books are opened. With subsequent bond issues. Other fixed indebtedness such as mortgages, etc., shall be treated in a simi- lar manner. If desired, separate accounts may be kept, numbered 49A, 49B, etc. ot.) 50— CAPITAL STOCK Dr: Or; With par value of Stock retired. With the par value of Stock out- standing when books are opened. With par value of Capital Stock is- sued thereafter. 51A— SURPLUS Dr: Or: With dividends declared. With income and excess profits taxes. With balance of Profit and Loss ac- count annually if a loss. With balance of Surplus when books are opened. With balance of Profit and Loss ac- count annually if a profit. aaaoxe bllR . .88XX: .gat Al&mux 51B— SURPLUS— TIMBER AND TIMBER LANDS APPRECIATION Dr: Cr; With corrections of amounts origin- ally set up as appreciation. With dividends declared out of the realized portion of this account. (Such dividends should be clearly designated as being paid out of Capital apprecia- tion or Earnings prior tg March 1, 1913.) With difference between cost and ap- praised value as of March 1, 1913. With corrections of amount origin- ally set up as appreciation. 52— PROFIT AND LOSS Dr: Or; This is a clearing account for all Income and Operating Accounts affect- ing operations for the year, no direct charges shall be made to this account un- til the end of the fiscal period. After all income and expenditure accounts have been closed into this account the resulting balance shall be transferred to Sur- plus 51A. .,.^ 60A— LOGS SAWN— SAW MILL Dr: Or: At end of fiscal period close to Prof- Monthly with market value of logs it and Loss Account. sawn by Saw Mill, charging account 90A. The quantity used in computing the monthly credit as above shall be de- termined by scales of logs sawn, or by inventories if available. If monthly in- ventories have not been used in determining footage sawn, then in addition to the regular monthly estimated credit, an adjusting entry shall be made when- ever a physical inventory is taken for the entire period. This adjustment shall be shown on the Condensed Operating Statement, Form 31. Memorandum of the feet shall be entered opposite each credit. UiimK ,A(;v; 60B— LOGS SAWN— SHINGLE MILL Dr: Or: At end of fiscal period close to Prof- Monthly with market value of logs it and Loss Account. sawn by shingle mill. Memorandum of the feet shall be entered opposite each credit. The method of computing the credit for shingle mill logs will be determined according to conditions at individual mills. 60C— LOGS— TO OTHERS Dr: Or; At the end of fiscal period close to With income from logs sold to oth- Profit and Loss Account. ers. Memorandum of feet shall be entered opposite each credit. 60D— LOGS LOST AND USED Dr: Or: At the end of fiscal period close to Profit and Loss Account. With the cost of logs lost and used, i. e. logs used in construction, repairs, etc. Memorandum of feet shall be entered opposite each credit. 61— SALES— LUMBER Dr: Or: At end of fiscal period close to Profit With f. o. b. amount of lumber sold and Loss account. from Sales Register, Form 4. Separate accounts may be kept such as 61A Rail, 61B Cargo, 61C Local, etc. Lumber used by the Company shall be credited to 61D at cost. 061— ALLOWANCES Dr: Or: With allowances made on Sales At end of fiscal period close to Prof- f rom Cash Receipts and Settlement it and Loss Account. Journal, Form 1, or Journal and Voucher Register, Form 3. Indicate kind of products in reference column on Forms 1 and 3, classify and post accordingly. If transactions are numerous open separate accounts such as the following: 061A Lumber, 061B Lath, 061C Box Shooks, 061D Shingles. 62— UNDERWEIGHTS PLAN 1 Dr: Cr: With the total of underweights col- umn in Cash Receipts and Settlement Journal, Form 1, if the amount of ex- pense bills exceeds the entries for freight in Sales Journal, Form 4. With total underweights column from Sales Journal, Form 4. With the total of underweights column in Cash Receipts and Settle- ment Journal, Form 1, if the amount of entries for freight in Sales Jour- nal, Form 4, exceeds the amount of expense bills. PLAN 2A With the total of actual freight from Cash Receipts and Settlement Jour- nal, Form 1. With the total estimated- freight from Cash Receipts and Settlement Journal, Form 1. PLAN 2B With the total of underweights col- umn from Cash Receipts and Settle- ment Journal, Form 1. Account 62, Underweights may be sub-divded if desired into underweights Lumber 62A, Shingles 62B, etc. For full explanation see following page. 62— UNDERWEIGHTS— (Continued) Owing to the fact that it is impossible for all mills to determine the actual freight on cars at time of shipment it is deemed advisable to explain the two methods of procedure. It is essential in any case that the estimated or price list freight be recorded so that the correct f. o. b. price on sales and also underweights may be deter- mined uniformly for all mills. PLAN I. This plan is to be used when the actual weight of shipment is determined promptly either from the mill's scales or the railroad scales. The amount of freight determined by applying the freight rate to actual weight is entered in Actual Freight column in Sales Journal, Form 4. The es- timated freight determined by applying freight rate to the total estimated price list weight of car is entered in Estimated Freight column in Sales Journal, Form 4. The underweights or the difference between estimated freight and actual freight determined as above explained is entered in Underweights column 62 in Sales Journal, Form 4. At the end of the month the total of Actual Freight column is credited to Reserve for Freight account 42 (Entry No. 1 in illustration) and the total of Underweights column 62 is credited to Underweights account 62, (Entry No. 2 in illustration). When entering the underweights in Sales Journal, Form 4, a symbol will be set opposite items in Reference column to indicate underweights other than lum- ber such as lath, shingles, etc. The total of each class of underweights will be posted separately to the credit of Underweights acount 62A, 63B, etc. The total of the Estimated Freight column in Sales Journal, Form 4, will not be carried to the General Ledger. When expense bill is received for credit the actual amount of freight will be entered in Actual Freight column, Cash Receipt and Settlement Journal Form 1. Any difference between the f^mount of expense bill and the amount shown in Actual Freight column, in Sales Journal, Form 4, will be entered in Underweights column in Cash Receipts and Settlement Journal, Form 1, over- ages in red and shortages in black. These differences on items other than lum- ber will be symbolized to indicate whether lath, shingles, etc., in Reference col- umn, and the net total of each class will be carried to debit or credit of respective Underweights Account 62 in the General Ledger (Entry No. 3 in illustration) ;d^m'' and the offsetting debit or credit will be posted to reserve for Freight 42, (En- try No. 4 in illustration). The total of Actual Freight column in Form 1, will be charged to Reserve for Freight 42, (Entry No. 5 in illustration). PLAN 2 Where actual weights are not obtainable at time of shipment, the matter of estimated freight and underweights will be handled as follows: The amount of freight determined by applying the rate to the price list weight will be entered in the Estimated Freight column of Sales Journal, Form 4, and items in this column other than lumber will have a symbol indicating whether lath, shingles, etc. The total amount of this column will be credited to Reserve for Freight account 42, in the General Ledger, (Entries 6 and 10 in il- lustration.) The settlement will be handled oy one of the following methods in the Casl\ Receipts and Settlement Journal, Form 1. A. Enter amount of estimated freight as shown in the Estimated Freight column. Form 4, in the Estimated Freight column. Form 1. Items in this col- umn other than lumber will have a symbol indicating whether lath, shingles, etc. At the end of the month post the total of this column to the General Ledg- er, charging account 42 (Entry No. 7 in illustration) and crediting account 62, (Entry No. 8 in illustration). The actual amount of the freight shall be entered in the Actual Freight column in Cash Receipts and Settlement Journal, Form 1. The total of Actual Freight column. Form 1, shall be posted at the end of the month to the General I^edger, charging account 62, (Entry No. 9 in illustration). The balance of Underweights account 62 will then show the underweights on settlements received. B. Enter in the Underweight column. Form 1, the difference between the, estimated freight as shown in the Estimated Freight column. Form 4, and the actual freight as per Expense Bill (or, in other words, the Underweights). At the end of the month post the total of the Underweights column. Form 1, to the General Ledger, charging account 42, (Entry No. 11 in illustration) and credit- ing account 62, (Entry No. 12 in illustration). In this case the total of Actual Freight column. Form 1, shall be posted to the General Ledger, charging ac- count 42, (Entry No. 13 in illustration). NOTE — It is recommended that mills not having scale weights include the underweights earned in each month in that month's business by following Plan 1, with the following modification: Enter in Actual Freight column of Sales Journal, Form 4, an approximate Actual Freight amount, in lieu of actual freight based on scale weights. ILLUSTRATIVE ENTRIES RESERVE FOR FREIGHT— 42 PLAN 1 Dr: -Actual Freight from Cash Receipts and Settlement Journal, Form 1, per Ex- pense Bill $175.01 Cr: 1 — Actual Freight per Sales Journal, Form 4 $175.00 4 — Difference between entr}^ for freight per Sales Journal Form 4, and Expense Bill from Cash Receipts and Set- tlement Journal, Form 1 01 $175.01 PLAN 2A 7 — Estimated Freight from Cash Receipts and Settle- ment Journal, Form 1 $200.00 6 — Estimated Freight from . Sales Journal, Form 4 $200.00 PLAN 2B 11 — Underweights from Cash Receipts and Settlement Journal, Form 1 $ 24.99 13 — Actual Freight from Cash Receipts and Settlement, Journal, Form 1 175.01 10 — Estimated Freight from Sales Journal, Form 4 $200.00 $200.00 {laudii ILLUSTRATIVE ENTRIES UNDERWEIGHTS 62 PLAN 1 Dr: Or: 3 — Difference between entry for freight per Sales Journal, Form 4, and Expense Bill from Cash Receipts and Settlement Journal, Form 1 $ 2 — Underweights per Sales Journal, Form 4 .$ 25.00 .01 PLAN 2A 9 — Actual Freight from Cash Receipts and Settlement Journal, Form 1 $175.01 8 — Estimated Freight from Cash Receipts and Settle- ment Journal, Form 1 $200.00 PLAN 2B 12 — Underweights from Cash Receipts and Settlement Journal, Form 1 $ 24.99 M(l 63— LATH Dr: Or: At end of fiscal period close to Profit With f . o. b. amount of lath sold, and Loss Account. from Sales Journal, Form 4. Memorandum of pieces shall be entered opposite each credit. -fCT 64— WOOD AND SAW DUST Dr: Chr: At end of fiscal period close to Prof- With amount from sales of wood it and Loss Account. and saw dust from Sales Journal, Form 4. Memorandum of units shall be entered opposite each credit. When wood is credited with the delivered price this amount will be debited with the delivery charge which is a credit to auto truck services, teaming, or outside parties. jiiq b^iovild .«f>tj'i 65A— BOX SHOCKS Dr: Or: At end of fiscal period close to Prof- With f . o. b. amount for sales of Box it and Loss Account. Shooks from Sales Journal, Form 4. Memorandum of feet shall be entered opposite each credit. 65B— CUT UP FACTORY. Dr: Cr: At the end of fiscal period close to With f.o.b. amount of sales of Cut Profit and Loss Account. Up Factory products, from Sales Journal, Form 4. Memorandum of units shall be entered opposite each credit. 67— SHINGLES Dr: Or: At end of fiscal period close to Prof- With f . o. b. amount of Sales of it and Loss Account. Shingles, from Sales Journal Form 4. Memorandum of pieces shall be entered opposite each credit. .JiiihiO'Ji yd. 68B— LUMBER SALES— DIRECT SHIPMENTS Dr: Cr With all expenses directly connect- ed with wholesale business, such as commissions, etc. At the end of fiscal period with the cost of Sales as shown by Account 98B. Close balance to Profit and Loss Account. With sales of Avholesale lumber pur- chases for direct shipment from Sales Journal, Form 4, or from special wholesale register if used. Memorandum of number of cars and feet shall be entered opposite each credit. The purpose of this account is to reflect the net profit on outside purchases for direct shipment. It can be further sub-divided into 68B1 Lumber, 68B2 Lath, etc. If desired the expenses may be kept in separate accounts and transformed to 68B at end of fiscal period. 70A— STORE MEECHANDISE. Dr Or: With inventory when books are opened. With all purchases of merchandise. With freight and express charges paid on incoming merchandise. With salaries, supplies and ex- penses. At the end of fiscal period close to Profit and Loss Account. With the gross sales of merchan- dise. With inventory when books are closed. In the case of large operations this account shall control individual ac- counts for inventories, purchases, expenses, and revenues. 70B— CAMP COMMISSARY Dr: Cr: With inventory when books are opened. With all purchases. With freight and express charges. With wages, supplies and ex- penses. At end of fiscal period close to Prof- it and Loss Account. With the Gross Sales of Merchan- dise. With Inventory when books are closed. In order to account accurately for merchandise charged to Commissary it is recommended that each purchase be extended on the purchase invoice at sell- ing price and the selling price entered in the column of Distribution, Form 8, next to the column containing the cost price. Also that inventories of Camp Commissary be entered in two columns, one at cost and the other at selling price. The sales plus the closing inventory at selling price should be very close to purchases at selling price plus beginning inventory at selling price. Any abnormal shortage indicates leakage and requires explanation. iTo' > 72A— HOTEL Dr: Cr: With inventory when books are opened. With purchases. With freight and express charges. With labor, supplies, expenses, de- preciation, etc. At the end of fiscal period close to Profit and Loss Account. With the Gross Income. With inventory when books are closed. . ' •. 72B— MILL MESS HOUSE Dr: Cr: With inventory when books are With Gross Income, opened. With inventory when books are With purchases. closed. With freight and express charges. With labor, supplies, expenses, de- preciation, etc. At the end of fiscal period close to Profit and Loss Account. 72C— CAMP MESS HOUSE Dr: Or With inventory when opening books. With purchases. With freight and express. With labor, supplies and expenses. At the end of fiscal period close to Profit and Loss Account. With Gross Income. With inventory when books are closed. h}W Ilia Ik' 72D— CAMP BUNK HOUSES Dr: Cr: With inventory of supplies when With Gross Income, books are opened. ^^^j^ inventory when books are With supplies and expenses used in closed. the upkeep of Bunk Houses. At the end of fiscal period close to Profit and Loss Account. rj tlUI; iiiui' 75— BARN Dr: Cr: With inventory when books are opened. With purchases. With freight and express. With labor, supplies, expenses, de- preciation of horses, etc. At the end of fiscal period close to Profit and Loss Account. With the use of horses charged de- partmental operations. With miscellaneous income. With inventory when books are closed. The charges to departments, such as yard, shipping, wood delivery, etc., should be sufficient to cover depreciation of horses, their feed, care, etc. :'jn ':fc! i)i OSulo boJldq iiii)' 76— POWEE, LIGHT AND WATER Dr: Or: With the cost of Power, Light and With the Revenue derived from Water furnished activities other than Light and Water Power sold, operation, crediting account 400. At the end of fiscal period close to Profit and Loss Account. The total units, or horse power developed should be estimated and this ac- count charged with its proportion of the total cost. \'.> * * ' i • - :»:r -. i 19W0q 98 ' )[']' iao9 lajoi orii io nofiic ^iw bog'iBi 78— RENTALS Dr: Cr: With labor, supplies and materials With all receipts from rental of used in the upkeep of rental buildings. property. With depreciation. With insurance, taxes, and other ex- penses directly chargeable to rental property. At the end of fiscal period close to Profit and Loss Account. .vp^yi] 79— FLOATING EQUIPMENT Dr: Cr; With labor, supplies and expenses, taxes, insurance, depreciation, etc., chargeable to the operation of tugs, lighters, etc. At the end of fiscal period close to Profit and Loss Account. With use of tugs, lighters, etc., charged to departmental operations. With miscellaneous income. If desired this account may be sub-divided into 79A, tugs ; 79B, scows ; etc. 4 ill I 85— OUTSIDE SERVICE Dr: Cr: With labor, material and supplies With revenue from services per- used on jobs where a charge is to be formed for others, made for a service performed for others. At the end of fiscal period close to Profit and Loss Account. 86— STUMPAGE— PROFIT AND LOSS Dr: Or; With any loss incurred on stump- With any profit realized on stump- age during the year. age during the year. At the end of fiscal period close to Profit and Loss Accoimt. oJ Ob-' 87— SUNDRY INCOME Dr: Or: With loss which can not be charged With gains which can not be cred- to any specific account. ited to any specific revenue account. Close either credit or debit balance to Profit and Loss Account. The details included in this account shall be fully itemized in the annual Profits and Loss statement. 'O' 88— DISCOUNT TAKEN Dr: Cr: At the end of fiscal period close to With cash discounts taken. Profit and Loss Account. Discounts on bills for Construction or Equipment may be deducted from such bills and not credited to this ac- count. :*i;l.i .JUliODOi, 89— INTEREST RECEIVED Dr: Or: At close of fiscal period close to With interest received from all Profit and Loss Account. sources. lO .a9'> 90A— LOGS SAWN Dr: Cr: With feet at market value of logs At the end of fiscal period close to sawn by saw mill. Profit and Loss Account. Memorandum of the feet shall be entered opposite each debit. See account 60A. 90B— LOGS PURCHASED Dr: Or: With cost, plus towing charges of At the end of fiscal period close to logs purchased. Profit and Loss Account. With log buyer ^s salary, scaling fees, etc. Memorandum of the feet shall be entered opposite each debit. gailfioa /(laliia a*it*y;tici ^ui liji /* .d lUil (lubaaioiuaM 93— LATH Dr: Or: With the cost of lath purchased. At the end of fiscal period close to Profit and Loss Account. Memorandum of pieces shall be entered opposite each debit. 95A— LUMBER TO BOX FACTORY Dr: Cr: With f . 0. b. market value of lum- At end of fiscal period close to Prof- ber delivered to Box Factory. it and Loss Account. Memorandum of feet shall be entered opposite each debit. 95B— LUMBEE TO CUT-UP FACTORY Dr; Cr: With f . 0. b. market value of liim- At end of fiscal period clo§e to Prof- ber delivered to Cut-Up Factory. it and Loss Account. Memorandum of units shall be entered opposite each debit. tO 97A— SHINGLE MILL— LOGS Dr: Or: With market value of logs sawn by At the end of fiscal period close to shingle mill. Profit and Loss Account. Memorandum of feet shall be entered opposite each debit. 97B— SHINGLES PURCHASED D>: Cr: With cost of shingles purchased. At the end of period close to Profit and Loss Account. Memorandum of pieces shall be entered opposite each debit. 98A— LUMBER PURCHASED— MILL Dr: Or: With cost of lumber purchases for At the end of fiscal period close to stock. Profit and Loss Account. Memorandum of feet shall be entered opposite each debit. vli 1 :ia >R/irhirj<T Tfiffrrtf! 98B— LUMBER PURCHASED— DIRECT SHIPMENTS Dr: Cr: With cost of outside purchases for direct shipment. At the end of fiscal period close to account 68B, Lumber Sales — Direct Shipments. Memorandum of feet shall be entered opposite each debit. The purpose of this account is to reflect the cost of purchases for direct shipment. Lumber purchased for reworking or yard stock shall not be charged to this account but shall be charged to account 98A. gJtsiii i)*i8jt5a?i A— LABOR Dr: Or: With the total of the operating col- At the end of fiscal period close to umn '^A" from Journal and Voucher Profit and Loss Account. Register, Form 3. This account shall control all operating accounts marked "A.'' •n B— SUPPLIES Dr: Cr: With the total of the operating Sup- At the end of fiscal period close to plies column ''B" from Journal and Profit and Loss Account. Voucher Register, Form 3. This account shall control all operating accounts marked *'B.'' C— EXPENSE Dr: Cr: With the total of the operating Ex- At , the end of fiscal period close to pense column ''C" from Journal and Profit and Loss Account. Voucher Eegister, Form 3. This account shall control all operating accounts marked *'C." D-E— EEPAIRS Dr: Or: With the total of the Repairs col- At the end of fiscal period close to umn *'D-E" from Journal and Vouch- Profit and Loss Account, er Register, Form 3. This account shall control all accounts marked "D-E.** 400— POWER, LIGHT AND WATER By: Or: With labor of engineers, firemen, oil- With charge to departments based ers, etc., operating power, light and on best estimate obtainable, water plant. With supplies such as oil, tools, etc., used in operation. With expenses such as power and light purchased, inspection fees, etc. With labor and materials used in re- pairing, light and water plants, and upkeep of fire hydrants and sprinkler systems. This account shall be cleared at the end of each month, as outlined in ex- planation of statements. If more than one power plant is in use separate ac- counts may be kept under the headings of Plant 1 and Plant 2. ,aoUHi.i 410— BLACKSMITH AND MACHINE SHOP— (Mill) Dr: Cr: With sundry supplies such as coal, With charges to departments bene- iron, tools, etc., that can not be located fitted on basis of shop labor distribu- to specific operating accounts. tion. Do not charge labor to this account. It shall be charged direct to depart- ments benefitted. Do not charge iron and other ma- terials to this account if it can be charged direct to departments benefit- ted. This account must be cleared each month. Large stocks of any kind must be carried in Inventory Account 4H Stock of Supplies. 420— BLACKSMITH AND MACHINE SHOP— (Camp) Dr: Cr: With sundry supplies such as coal, With charges to departments bene- iron, tools, etc., that can not be located fitted on basis of shop labor distribu- to specific operating accounts. tion. Do not charge labor to this account. It shall be charged direct to depart- ment benefitted. Do not charge iron and other ma- terials to this account if it can be charged direct to departments benefit- ted. This account must be cleared each month. Large stocks of any kind must be carried in Inventory Account 4H Stock of Supplies. ..tlTIiO: .boi 500— SELLING— ADMINISTRATIVE Dr: Cr: With the total of Selling and Ad- At the end of period close to Profit ministrative column ''500'^ from Jour- and Loss Account, nal and Voucher Register, Form 3. This account shall control all operating accounts marked *'500." riCI OPERATING ACCOUNTS. The following accounts shall not be kept in the General Ledger but recorded on "Distribution of Operating Accounts, Form 6.'^ 100— CONTRACT LOGaiNG. lOOA— Labor. lOOB— Supplies. lOOC— Expenses. lOOD-E— Repairs. Charge labor assumed by company in connection witli contract logging. (Charge to this account supplies furnished by company to contractors. Charge with amounts credited to contractors for logs delivered. No charge unless company furnishes equipment to contractors in which case repairs on such equipmeni: shall be charged to this account. 101— RIGGING AHEAD. lOlA— Labor. lOlB— Supplies. lOlC — Expenses. lOlD-E— Repairs. Charge labor expended in rigging ahead and making- landings, etc. Charge to this account supplies used. No charge. No charge. 102— FALLING AND BUCKING. 102A — Labor. Charge labor of fallers, buckers, filers, snipers, etc. 102B — Supplies. Charge supplies used such as axes, saws, wedges, oil, etc. 102C — Expenses. No charge. 102D-E — Repairs. No charge. .a?3iiq< 103— YARDING AND LOADING. 103A— Labor. 103B— SuppUes. 103C — Expenses. 103D— Repairs. 103E— Repairs. Charge labor of donkey engineers, firemen, hook ten- ders, chokermen, chasers, rigging men, loaders, sig- nal boy, etc. Charge supplies used such as axes, saws, oil. etc. Wood used by donkeys is charged this account and credited to 4N. No charge. Charge all labor used in making repairs to yarders and loaders. Charge material used in making repairs to yarders and loaders. 'HUoOb "iiuh-.l. .8oilq<i 104— WIRE ROPE. 104A— Labor. 104B — Supplies. 104C — Expenses. 104D-E— Repairs. No charge. Charge wire rope used in yarding and loading. No charge. No charge. 109— DEPEECIATION— LOGGING. I09A— Labor. 109B— Supplies. 1090 — Expenses. 109D-E— Repairs. No charge. No charge. Oharge each month, estimates depreciation of Log- ging Equipment. No charge. Oredit Reserve for Depreciation Account 44. 110— RAILROAD. IIOA— Labor. HOB— Supplies. HOC — Expenses. 110^— Repairs. HOE — Repairs. Charge labor of engine and train crews. Charge supplies used such as oil, wood, waste, tools, fittings, etc. Charge log freight and hauling paid others. Charge labor overhauling locomotives and cars, and labor of main line section crews in the upkeep of railroad. Charge all material and supplies used in the upkeep of locomotives, cars, and main line railroad. Repairs to Rolling Stock may be kept separate from upkeep of road by using accounts 110 Dl 110 D2 110 El 110 E2, respectively. TT Ill— SPUR TRACKS. (Accounts 111 A and lllB shall be used only when costs of temporary spurs are not pro rated in accordance with footnote.) lllA — ^Labor. IIIB — Supplies. IIIC — Expenses. IIID-E— Repairs. Charge labor clearing right of way, grading, layino; and removing track, etc. Falling and Bucking pre- liminary to clearing right of way should be charge account 102. Charge material and supplies used in building and removing temporary Spur Tracks, such as new ties, explosives, small tools, bolts, spikes, etc. (Steel rail, frogs, switches, connections, should not be charged to this account but should be capitalized under the proper sub-division of Account 14 and charged off thru the Reserve for Depreciation Ac- count 44.) Charge amounts transferred from Temporary Spurs account 22. No charge. In extensive operations the cost of temporary spur should be charged to ac- count 22, and transferred to lllC monthly during the operating period pre- ferably on a per M basis. An individual record should be kept for each Tempor- ary Spur constructed. T.iffp.. .89ilqqu^ .Boanaqxv" 112— WATER HAUL. 112A— Labor. 112B— Supplies. 112C — Expenses. 112D — Repairs. 112E — Repairs. No charge. No charge. Charge use of company tugs, (credited to 79) and hire of other tugs, excepting return of boom sticks cov- ered in 115. No charge. No charge. ■l'>'if- Mn n 113_0THER HAUL. 113A — Labor. 113B— Supplies. 113C — Expenses. 1 13D — Repairs. 1 13E — Repairs. Charge labor engaged in transportation of logs, other than by railroad and water, such as auto trucking, etc. Charge supplies used in transporting logs, other than by railroad and water. Charge auto trucking hire and per diem expenses for transportation of logs other than by railroad and water. Charge labor of repairing auto trucks, etc., used in transporting logs. Charge material and supplies for repairing auto trucks, etc. 114_B00MING AND RAFTING. 11 4A — Labor. 114B — Supplies. 114C — Expenses. 114D — Repairs. 114E — ^Repairs. Charge labor of booming and rafting logs. Charge supplies used in the booming and rafting of logs. Charge expenses incurred, not covered under othei- segregations of account 114. Charge labor repairing Boom and Rafting Equip- ment. Charge material and supplies such as, cable, chain, piling, etc., used in the upkeep of Booming and Rafting Equipment. PiZ^lT^' .'>ifqqn8— a^l .8|^<>[ .H'Vdiil' .aiiuqe' 115— BOOM STICK TOWING. 115A — ^Labor. 115B — Supplies. 115C — Expenses. No charge. No charge. Charge use of Company tugs, (credited to 79) and hire of other tugs for return of Boom Sticks. 1 15D-E — Repairs. No charge. 119— DEPRECIATION— TRANSPORTATION. 119A— Labor. No charge. 119B— Supplies. No charge. 119C — Expenses. Charge each month estimated depreciation of Rail- road Transportation Equipment. 119D-E— Repairs. No charge. Credit Reserve for Depreciation Account 44. 120— SALARIES AND WAGES. 120A— Labor. Charge the salaries of logging superintendent, pro- portion of salary general superintendent, time- keepers and clerks in logging operations, watchmen, etc., that can not be directly charged to accounts 100 to 115, inclusive. 120B— Supplies. No charge. 120C— Expenses. Charge Expense Accounts of employes included above. 120D-E— Repairs. No charge. 121--SUNDRY EXPENSES. 121A— Labor. No charge. 121B— Supplies. 121C — Expenses. No charge. Charge such expenses as telephone, current for camp lighting, etc., that can not be classified. 121D-E— Repairs. No charge. This account must not be burdened with items that can be classified into other accounts. 122— ANTICIPATED REPAIRS. 122A— Labor. No charge. 122B— Supplies. No charge. 122C — Expenses. Charge during operating months an estimated amount sufficient to provide for major repairs usually in- curred during shut down periods. These expenses when actually incurred should be charged to Re- serve for Anticipated Repairs Account 45. 122D-E— Repairs. No charge. .j^^rlcfCfrj- iiU: 123— SHUT DOWN OVERHEAD. 123A— Labor. No charge. 123B— Supplies. No charge. 123C — Expenses. Charge during operating months an estimated amount sufficient to provide for overhead expenses during shut down periods. These expenses when actually- incurred should be charged to Reserve for Shut Down Overhead account 46. 123D-E— Repairs. No charge. 128A— Labor. 128B— SuppHes. 128C— Expenses. 128D-E— Repairs. 128— LOGS LOST. No Charge. No Charge. Charge at Cost logs lost, and credit SOD. No Charge. The purpose of this account is to record and show in operating costs, thf value of logs lost. .todjaJ .axij: .Jaoi 130'-STUMPAGE. 130A — Labor. No Charge. 130B— Supplies. No Charge. 130C — Expenses. Charge the value of Stumpage logged. 130D-E — Repairs. No Charge. .aout)' 200— POND OR LOG YARD. 200A— Labor. 200B— Supplies. 200C— Expenses. 200D— Repairs. 200E— Repairs. Charge labor operating Pond or Log Yard, including putting logs on log haul. Charge materials and supplies used in the operation of Pond. Charge expenses directly located to Pond not covered by the other segregations of this Department, such as shifting logs with tug, etc. Charge labor repairing Pond or Log Yard, such as dredging, cleaning out, driving piling, etc. Charge material and supplies necessary to make re- pairs. .811 r 201— SAW MILL. 201A— Labor. 201B— Supplies. 201C — Expenses. 201D— Repairs. 201E— Repairs. Charge operating labor in Saw Mill from the dock to the sorting chain, including deckman, sawyer, dog- gers, setter, off bearer, trimmer, edgermen, resaw- yer, oilers, rolls men, mill tallymen, foreman, etc. Charge all supplies used such as saws, belts, tools, oil, grease, etc. Charge expenses directly located to sawing but not classified under other segregations of the depart- ment, such as Light, Power, etc. Charge labor engaged in overhauling and repairing machinery, building, foundations, docks adjacent thereto, etc., such as millwrights, etc. Charge all materials and supplies used in overhauling and repair work. Expense of rehandling lumber for remanufacturing should be charged this account. i \ ' .ffrtii Lijniiii- JIIiJO^&: 202— SORTING TABLE. 202A— Labor. Charge labor on table, including marker, table rolls and sorting crew. 202B— Supplies. 202C— Expenses. 202D-E— Repairs. No Charge. No Charge. No Charge. .tocfj; .89ilqqif8 — HS: .a'>8r 203— DRY KILN. 203A— Labor. 203B— Supplies. 203C— Expenses. 203D— Repairs. Charge labor loading, operating and unloading Dry Kiln. Charge supplies used in the operating of Kilns. Charge expenses directly located to Dry Kiln not classified under other segregations of this depart- ment, such as Light, Power, etc. Charge labor repairing Dry Kilns, stackers and un- stackers, docks and foundations adjacent thereto, etc. 203E— Repairs. Charge materials and supplies used in making repairs. 204— TIMBER DOCK 204A— Labor. 204B— Supplies. 204C — Expenses. 204D-E— Repairs. Charge labor handling timbers from mill to loading track, except sizing. Loading on cars is chargeable to shipping. No Charge. No Charge. No Charge. •lodju; 205— TRANSPORTATION. 205A— Labor. 205B— Supplies. 2050 — Expenses. 205D— Repairs. 205E — Repairs. Charge labor of teamsters, jitney and tractor drivers, traveling crane men, etc., handling liunber. Charge supplies used by the above. Charge expenses directly located to transportation such as power, horse hire, etc. Charge labor repairing transportation equipment. Charge material and supplies used in repairing trans- portation equipment. t brrr. .lod&s iioiJiiJ'K'qsxiJ^'; .g^ciiiuqz. .tfionn: ''diji^DqHriB-ij i^nhifiqfn locfal fj^iiiii) .8iiijqo/ t itqqua bn. ff-> .B'lxjsqs' 206— PILING. 206A— Labor. Charge labor for piling, sticking and stacking lumber in yard or on dock. It includes putting on covers, building pile bottoms, etc. (Taking down from pile is chargeable to shipping.) 206B— Supplies. No Charge. 206C— Expenses. 206D-E— Repairs. No Charge. No Charge. .TodijJ 207— ROUGH DRY SHED. 207A — Labor. Charge labor employed in rough dry shed. 207B— Supplies. No charge. 207C— Expenses. No charge. 207D-E— Repairs. No charge. 208— DRY SORTING. 208A — Labor. Charge labor on dry sorting chain and marker. 208B — Supplies. No charge. 208C — Expenses. No charge. 208D-E — ^Repairs. No charge. .a'iiuq 209— FINISHED SHED. 209A— Labor. 209B— Supplies. 209C— Expenses. 209D-E— Eepairs. Charge labor employed in finished dry shed. (Shed Stacking.) No charge. No charge. No charge. .aiiijq^^ 210— GENERAL. 210A— Labor. 210B— Supplies. 210C— Expenses. 210D— Repairs. 210E— Repairs. Charge yard labor not definitely located to other yard cost accounts, such as truck rustlers, cleaners, sweepers, etc. Charge expenses not definitely located to other yard cost accounts. Charge yard supplies not definitely located to other yard cost accounts. Charge labor making repairs benefitting the yard generally and which can not be definitely located to other yard costs. Such items will be repairs to trams, docks, tracks, sheds, etc. Charge material making repairs as explained above in D. The repairs "D-E" may be segregated and shown in separate accounts as: 210 Dl trams. 210 D2 cargo dock. 210 D3 tracks. etc. 220— PLANING MILL. 220A— Labor. 220B— Supplies. 220C— Expenses. 220D— Repairs. 220E— Repairs. Charge labor of planing mill crew such as feeders, off bearers, trimmers, graders, oilers, cleanup, fore- men, etc. Charge supplies used such as oil, belting, planing knives, saws, twine, etc. Charge expenses such as light, power, etc. Charge labor repairing building, machinery, tools, etc. Charge materials and supplies used in repairs. .lodi^Li 'finiEt; gifidO .a-tUqfjII .K*IIJ>^ 221— SIZER. 221A— Labor. 221B— Supplies. 221 C — Expenses. 221D— Repairs. 221E— Repairs. Charge labor sizing lumber. No charge. No charge. No charge. No charge. •S'llJiW: 229— DEPRECIATION. 229A— Labor. 229B— Supplies. 229C— Expenses. 229D-E— Repairs. No charge. No charge. Charge each month estimated depreciation of manu- facturing investment. No charge. Credit Reserve for Depreciation Account 44. ,*iod^J M .arifiqe' 230— SALARIES AND WAGES. 230A— Labor. Charge proportion of salaries of general superintend- ent, manufacturing superintendent, clerks, time- keepers, watchmen and others that can not be di- rectly charged to accounts 200 to 221. 230B— Supplies. 230C — Expenses. No charge. No charge. 230D-E— Repairs. Charge expense accounts of employes included above. .lod^tl .^li'ii j&QilqqiiS — HOUt .8iUqoH-~v^-C! 231— SUNDRY EXPENSES. 231A— Labor. 231B— Supplies. 231 C — Expenses. 231D-E— Repairs. No charge. No charge. Charge miscellaneous expenses such as fees, licenses, etc., not directly located to any of the other manv- facturing accounts. No charge. This account must not be burdened with items that can be charged direct to other accounts. .eoati^qx. L IT 232— ANTICIPATED REPAIRS. 232A — Labor. No charge. 232B — Supplies. No charge. 232C — Expenses. Charge during operating months with an estimated amount sufficient to provide for major repairs usually incurred during shut down periods. These expenses when actually incurred should be charged to Reserve for Anticipated Repairs, Account 45. 232D-E — Repairs. No charge. todjii A-Ui-Al'i 233— SHUT DOWN OVERHEAD. 233A— Labor. 233B— Supplies. 233C— Expenses. No charge. No charge. Charge during operating months with an estimated amount sufficient to provide for all overhead ex- pense during shut down periods. These expenses when actually incurred should be charged to Re- . serve for Shut Down Overhead, Account 46. 233D-E— Repairs. No charge. .8£>rIqqoP m:j^,wjv. .siinqo^ — ^-(i 300— LATH. 300A— Labor. 300B— Supplies 300C — Expenses. 300D— Repairs. Charge labor of lath men. Charge supplies used in making and bundling lath. Charge expenses such as power, etc. Charge labor repairing Lath Mill building and equip- ment. 300E— Eepairs. Charge material and supplies used for repairs. .^'tiikj .gniiiq 310— WOOD. 310A— Labor. 310B— Supplier. 310C — Expenses. 310D-E— Repairs. Charge labor of men engaged in pulling wood out of conveyor and loading, also staking and bracing cars when necessary. Charge tools used by wood laborers, also stakes and bracing when same can not be charged to customer. Charge expenses not classified as labor or supplies such as demurrage, etc. No charge. / 320— BOX FACTORY. 320A — Labor. Charge all labor employed in making box shooks, from tbe time lumber is delivered from j^ard until loaded in cars as shooks. Taking down and moving from yard to Box Factory is chargeable to lumber ship- ping- 320B — Supplies. Charge all supplies such as oil, belting, saws, tools, fasteners, wire, etc. 320C — Expenses. Charge power, depreciation, etc. 320D — Repairs. Charge labor repairing factory buildings and equip- ment. 320E — Repairs. Charge all materials and supplies used in repairs. .8i)ilq> .??ihiaoVl 330— CUT UP FACTORY. 330A— Labor. 330B— Supplies. 330C— Expenses. 330D— Repairs. 330E— Repairs. Charge all labor used in Cut Up Factory from the time lumber is delivered from stock until it is finished and loaded. Charge all supplies such as oil, belting, saws, tools, wire, glue, etc. Charge power, depreciation, etc. Charge labor repairing factory buildings and equip- ment. Charge all materials and supplies used for repairs. .YJ in .tnoi(( .lot-fiiJ — AOf; .aallqqi/cr'.—MOK .etxfiqQH- -dOf:; .aiajq').)! KiiU^ 340— SHINGLE MILL. 340A— Labor. 340B— Supplies. 340C — Expenses. 340D— Repairs. Charge all labor employed in Shingle Mill from mill pond or the correct proportion of saw mill cost un- til shingles are loaded. Charge all supplies such as oil, belting, saws, tools, wire, etc. Charge power, depreciation, etc. Charge labor repairing shingle mill buildings and equipment. 340E— Repairs. Charge all materials and supplies used for repairs. .'irj(iit ■.V) 390— SHIPPING. 390A— Labor. 390B— Supplies. 390C— Expenses. 390D-E— Repairs. Charge all labor of unloading lumber from pile and loading in cars or moving to Box Factory or Cut Up Factory. Cargo shipping shall be the operation of loading from dock. Charge supplies such as stakes, bracing, nails, etc., furnished shipping crew when not charged to cus- tomer. Charge expenses such as demurrage, inspection, fees, etc. No charge. .100. .a9&H»qxH SELLING. 510— AD VERTISING. Charge expenses incurred by the business for Advertising. This account should be distributed on an equitable basis to lumber, shingles, etc. 511— SALESMEN'S AND SELLING SALARIES. Charge salaries of field salesmen and office force such as sales manager, clerks, stenographers, etc., chargeable exclusively to selling. 512— SALESMEN'S EXPENSES. Charge expenses located directly to selling, such as traveling expenses, tele- phone, telegraph, postage, etc. 513— COMMISSIONS. Charge commissions, except on wholesale business which is chargeable to ac- count 68B. Entries are obtained from the following books: Charge with total of Commissions column and Commissions in General Ledger column from Sales Journal, Form 4. Charge with debit adjustments of Commission items (513) from the General Ledger column on the debit side of Cash Receipts and Settlement Journal, Form 1. ■ Credit with credit adjustments of Commission items (513) from the General Ledger column on the credit side of Cash Receipts and Settlement Journal, Form 1. Post debit and credit items from Journal and Voucher Register, Form 3. Kind of products shall be indicated as 513A Lumber. 513B Shingles, etc. 514— BRANCH EXPENSES. Charge expenses of field sales offices. ,(0 .1 xxno''»i t;PnT«5 bfT.n trrf^h i-^o*! ^xiijiiiaqjcj o"^ii3u.; ADMINISTRATIVE. 550— EXECUTIVE SALARIES. Charge salaries of officers such as President, Vice President, General Mana- ger, Secretary and Treasurer. These salaries should be apportioned each month on the basis of established percentages to departments benefitted, such as log- ging, manufacturing, selling, shingles, etc., determined by each operation accord- ing to the best judgment of the management. See explanation of statements for procedure in making distribution. 551— OFFICE SALARIES. Charge salaries of general bookkeepers, clerks, stenographers, etc. Appor- tion this expense to logging, manufacturing, selling, etc., the same as outlined for 550 Executive Salaries. 552— STATIONERY, PRINTING AND OFFICE SUPPLIES. Charge stationery, printing, and office supply expenses. Distribute to log- ging, manufacturing, selling, etc., on the basis of established percentages. 553— RENT AND LIGHT. Charge expenses as enumerated in heading, and distribute to logging, manu- facturing, selling, etc., on the basis of established percentages. 55^^-POSTAGE, TELEPHONE AND TELEGRAPH. Charge all general postage, telephone and telegraph expenses to this account and distribute to the important divisions of the business on established percent- age basis. 556— PROFESSIONAL SERVICES. Charge legal, auditing, engineering and similar professional fees not charge- able specifically to any other accounts. Distribute to the important divisions of the business on an established percentage basis. .biy 557— SUNDRY EXPENSES. Charge to this account miscellaneous administrative expenses such as dona- tions, dues, etc., that can not be located to other sub-divisions of Administrative Expenses. Distribute on an established percentage basis. 558— FIRE AND BOILER INSURANCE. Charge all fire and boiler insurance to this account. Distribute to logging, manufacturing, etc., on basis of actual insurance carried for the respective de- partments. 559— LIABILITY INSURANCE. Charge industrial insurance assessments, first aid contiibutions, and ypecial expenses and payments to injured. Credit payroll deductions. Distribute on the basis of payroll. 561— TAXES. Charge personal and real taxes on buildings, equipment and stocks and capi- tal stock taxes, state and city licenses, etc., to this account and distribute as be- tween logging, manufacturing, etc., according to investments. Taxes on timber holdings charge to Timber Taxes and Expenses account 574. Charge Income and Excess Profits Taxes direct to Surplus account 51 A. 562— DEPRECIATION -FURNITURE AND FIXTURES. Charge each month estimated depreciation on office furniture and fixtures. 570— BAD AND DOUBTFUL DEBTS. Charge monthly a percentage of the sales based on individual experience which will be sufficient to provide for possible losses in collection, crediting ac- count No. 40. 571— DISCOUNT ALLOWED. Charge monthly a percentage of sales based on individual experience which will be sufficient to provide for discounts taken by customers, crediting account 41. 572— INTEREST PAID. Charge all interest paid to others, excepting on timber indebtedness which shall be charged to account 574. 573— SPECIAL LOSSES. Charge losses such as fire, floods, strikes, etc. 574r— TIMBER, INTEREST, TAXES AND EXPENSES. Charge interest on timber indebtedness, taxes on timber, cruising, fire pro- tection, etc. CASH RECEIPTS & SETTLEMENT JOURNAL. (Form 1) This form (especially devised) shall be used for recording remittances re- ceived and details of sales settlements. The following columns are provided for on this form: CAR: Initials — Number — Expense Bill No. — Claim No. (Freight Claim). Self ex- planatory. REFERENCE: This column shall be used to designate opposite each item whether the set- tlement affects lumber sales, lath sales, etc. ESTIIMATED FREIGHT: UNDERWEIGHTS: See detailed explanation of Underweights, account 62. If plan 1 or 2B is followed erase "Estimated Freight." If plan 2A is followed erase ''Under- weights." This codumn is not to be used in balancing the page. ACTUAL FREIGHT: See detailed explanation of Underweights account 62. RESERVE FOR DISCOUNTS 41: Enter discounts allowed to customers. At the end of each month the total of this column shall be charged to Reserve for Anticipated Discounts 41. COMMISSIONS PAYABLE 30C: Enter deductions allowed customers! for commissions. Each amount so de- ducted shall be reconciled with the anticipated credit for commissions shown in Commissions Payable column 30C in Sales Journal, Form 4, and differences ad- justed as follows: If the commission allowed exceeds the anticipated amount charge the dif- ference to Commissions 513 in the General Ledger column on the debit side and credit it to Commissions Payable 30C in the General Ledger column on the credit side. If the commission allowed is less than anticipated amount credit the differ- ence to Commissions 513 in the General Ledger column on the credit side and charge it to Commissions Payable 30C in the General Ledger coliunn on the debit side. ALLOWANCES 061 : Enter allowances to customers for grade shortages, errors in price, etc. At the end of each month the total of this account shall be analyzed as to al- lowances on lumber, shingles, etc., and segregated totals shall be debited to ac- coun 061A, 061B, etc. NOTES AND ACCEPTANCES RECEIVABLE 3A: Enter face value of notes or acceptances from customers. At the end of each month the total of this column shall be charged to Notes and Acceptances Receivable 3A. GENERAL LEDGER: Enter charges to accounts having no special column and note account num- ber in Reference column. Amounts entered in this column shall be posted to accounts in General Ledger. All entries in General Ledger column which are posted to controlling ac- counts A, B, C, D, E and 500 must also be posted to the respective distribution sheet, Form 6. DAY: Self explanatory. CASH IB: Enter the net amounts of remittances. At the end of each month the total of this column shall be charged to the Cash IB. DEPOSITS: Enter individual deposits. If there are two or more bank accounts, deposits in respective banks shall be designated in the reference column as IC, ID, etc. All cash received should be deposited. At the end of each month the total deposits in each bank shall be charged to accounts IC, ID, etc., and credited to Cash Account IB. ACCOUNTS RECEIVABLE 2: Enter the total credit of each settlement which will include cash, deductions for freight, discounts, commissions and allowances, and notes and acceptances. One or more columns may be used depending on the number of controlling accounts maintained. GENERAL LEDGER: Enter credits to accounts having no special column and note account number in Reference column. Amounts entered in this column shall be posted to accounts in General Ledger. All entries in General Ledger column which are posted to controlling ac- counts A, B, C, D, E and 500 must also be posted in red to the respective dis- tribution sheets. Form 6. .o nvii NOTES AND ACCEPTANCES RECEIVABLE 3A: Enter cash received on Notes and Acceptances Receivable. At the end of each month the total of this column shall be posted to Notes and Acceptances Receivable 3A. CASH SALES: Enter receipts from cash sales of mill products. At the end of each month the total of this column shall be posted to Cash Sales in Accounts Receivable Ledger and to Accounts Receivable 2. It is important that the Cash Sales nccount be reconciled monthly. BLANK COLUMNS: These columns shall be used when necessary to facilitate posting to accounts having no special column but numerous transactions. CHECK EEGISTER. (Form 2) This form (especially ruled) shall be used for recording checks issued. Use separate sheets for each bank. The following columns are provided for on this form: DAY: Self explanatory. FAVOR OF: Name and Particulars. CHECK NO. : BANK: Enter amount of each check drawn. At the end of each month the total of this column shall be credited to Bank Accounts IC, ID, etc. DISCOUNTS TAKEN 88: Enter amount of discount taken on purchases. At the end of each month the total of this column shall be credited to Dis- counts Taken 88. VOUCHER NO. : Enter numbers of vouchers paid by each check. .Oj'.) VOUCHERS PAYABLE 31A: Enter gross amounts of vouchers paid by each check. At the end of each month the total of the Vouchers Payable column shall be charged to Vouchers Payable 31A. The check number and date shall be entered in Journal and Voucher Regis- ter, Form 3, opposite the vouchers paid by each check. ACCOUNTS PAYABLE 31B: Enter gross amounts paid on accounts carried in the Accounts Payable Ledger. At the end of each month the total of this column shall be charged to Ac- counts Payable 31B. The individual items shall be posted to individual accounts in the Accounts Payable Ledger. GENERAL LEDGER: Enter all charges to accounts having no special column and note account number in Reference column Amounts entered in this column shall be posted to accounts in General Ledger. All entries in General Ledger column which are posted to controlling ac- counts A, B, C, D, E and 500 must also be posted to the respective distribution sheets, Form 6. MEMORANDUM (DEPOSITS— BALANCE) : Enter in first column each deposit made from Cash Receipts and Settle- ment Journal, Form 1. The difference between total of deposits and total of checks drawn shall be entered in the Balance column (overdraft in red), daily or oftener if required. At the beginning of each month the balance on deposit shall be entered on the forward line in the Deposits column. k\v jdjiit>r HW ^JFTAY imiiiti) a~-aTi80s BLANK COLUMNS: These columns shall be used when necessary to facilitate postings to accounts having no special column but numerous transactions. JOURNAL AND VOUCHER REGISTER. (Form 3) This form (especially devised) shall be used as a combination purchase reg- ister and general ledger. The following columns are provided on this form: DATE : Self explanatory. PARTICULARS : Enter name of creditors, or when a Journal entry the names of accounts af- fected. The invoice dates may be shown and also a brief description indicating the nature of transaction. PAID: Date — Check No. Enter the date and check number of checks drawn in payment of vouchers. VOUCHER NO.— Purchase Journal: Enter numbers given to the purchas j vouchers and journal vouchers, in their respective numerical sequence. VOUCHERS PAYABLE 31A: Enter amount of vouchers which may be entered individuallv or collectively by vendors. At the end of each month the total of this column shall be credited to Vouch- ers Payable 31 A, and the total of the unpaid vouchers which is the balance of Vouchers Payable 31 A, must agree with the total of amounts opposite which no reference of payments appear. Items entered in the Vouchers Payable column shall be paid promptly each month, i.e., on or before the 10th of the month following. Where it is found that vouchers for some reason can not be paid promptly, transfer should be made by journal entry from Vouchers Payable to Accounts Payable. [Rfl ito^ edJ fltuoDi . iji- • ' -ylaam ACCOUNTS PAYABLE 31B: When advisable or necessary to carry accounts with creditors the credits shall be made in the Accounts Payable column, and posted to the credit of the in- dividual accounts in the Accounts Payable Ledger. At the end of each month the total of this column shall be credited to the Ac- counts Payable 31B. ACCOUNTS RECEIVABLE 2: Enter credits to accounts in the Accounts Receivable Ledger, not originating in settlements recorded in Cash Receipts and Settlement Journal, Form 1, and post to individual accounts. At the end of each month the total of this column shall be credited to the Ac- counts Receivable 2 or 2A, B, etc. GENERAL LEDGER, Credit: Enter credits to accounts having no special column and note account num- ber in Reference column. Amounts entered in this column shall be posted to accounts in General Ledger. LABOR— A: Enter charges to labor accounts marked "A" and analyze on Distribution sheet. Form 6. At the end of each month the total of this column shall be posted to Control A. SUPPLIES— B: Enter purchases or charges to supplies accounts marked **B", and analyze on Distribution sheet. Form 6. At the end of each month the total of this column shall be posted to Control B. Ldij^t^S- etfli/( »(( if firia ami. ■ -.t eilj ditt< EXPENSES— C: Enter charges to expenses accounts marked "C" and analyze on Distribution sheet, Form 6. At the end of each month the total of this column shall be posted to Control C. REPAIRS— D-E: Enter labor and material chargeable to repairs accounts marked '*D-E'*, and analyze on Distribution sheet, Form 6. At the end of each month the total of this column shall be posted to Control D-E. SELLING AND ADMINISTRATIVE— 500: Enter items chargeable to accounts 500 to 599 and analyze on Distribution sheet, Form 6. At the end of each month the total of this column shall be posted to Control 500. MISCELLANEOUS ACCOUNTS: Enter items chargeable to accounts 70 to 89, inclusive, unless a separate col- umn is used for any of these. Analyze on distribution sheet. Form 6, and sum- marize at foot of column at end of month. Post totals to respective accounts. ACCOUNTS PAYABLE— 31B: Enter charges to accounts in the Accounts Payable Ledger not originating in Check Register, Form 2, and post to individual accounts. At the end of each month the total of this column shall be charged to Ac- counts Payable 31B. .YA^ GENERAL LEDGER, Charge: Enter all charges to accounts having no special column and note account number in Reference column. Amounts entered in this column shall be posted to accounts in General Led- ger. BLANK COLUMNS: These columns shall be used when necessary to facilitate postings to accounts having no special column but numerous transactions. SALES JOURNAL. (Form 4) This form (especially devised) shall be used as a Sales Journal. The following columns are provided on this form: DAY: Self explanatory. NUMBER: It is recommended that invoices be munbered consecutively and numbers in- serted in this column. CAR: Initials — Number. Self explanatory. SOLD TO: Self explanatory. DESTINATION: Self explanatory. ACCOUNTS RECEIVABLE 2: Enter gro_ss amount of charge sales and post to individual accounts. Enter also cash sales in one total at the end of the month. One or more columns may be used depending on the number of controlling accounts maintained. At the end of each month the totals of these columns shall be charged to Ac- counts Receivable 2A, 2B, etc. GENEEAL LEDGER: Enter charges to accounts having no special column and note account number in Reference column. If no separate column is used for local sales control they shall be entered in this column at the end of each month in one total. Lumber for Company use shall be treated in the same manner. Where lumber is invoiced at a price from which commission or a broker's concession has been deducted, the commission or concession shall be entered in this column and credited under the respective sales columns. The total of such items in the General Ledger column shall be posted to Commissions 513. This is intended to include in Commissions 513, the commission or brokerage conces- sion sometimes deducted from the price per M. ESTIMATED FREIGHT: See detailed information of Underweights, Account 62. ACTUAL FREIGHT: See detailed information of Underweights, Account 62. UNDERWEIGHTS 62 See detailed information of Underweights, Account 62. LUMBER F.O.B. 61: Columns are provided for lumber, lath, wood, box shooks, cut-up products and shingles. Enter feet or pieces and f. o. b. mill amount (i.e., invoice amount less esti- mated freight) of lumber, and mill products. The f. o. b. mill amount includes all discounts and commissions allowed. The feet or pieces and f . o. b. amount recorded in these columns shall be analyzed on Sales Analysis, Form 5. At the end of each month the total sales shall be credited to Accounts 61, 63, 67, etc. Lumber sales may be segregated into Rail 61A, Cargo 61B, etc. In some cases it may be necessary to keep separate Sales Journal sheets for Rail, Cargo, etc. COMMISSIONS 513-300: There are two methods of recording Commissions. FIRST — Where no individual accounts are maintained for salesmen or brokers. Enter name of salesman, rate and amount if the commission is to be paid by check. Make out check directly from this entry or entries, if the check is to cover more than one car, and note check number in Reference column opposite each item to indicate payment. Enter rate and amount if the commission is to be deducted from a settle- ment remittance and when deduction is made note in Reference column the folio of Cash Receipts and Settlement Journal, Form 1, on which entry appears. At the end of each month the total of this column shall be charged to ac- count 513 and credited to account 30C. The total of unpaid commissions which is the balance of account 30C, must agree with the total of amounts in this column opposite which no reference of pajonent appears. SECOND — Where individual accounts are kept for salesman and brokers. Enter the name of salesman, rate and amount, indicating by ''A*' the com- missions to be paid by check, and by "B" the commissions to be deducted by purchaser. / Charge the total of this column to Commissions 513 at the end of the month. Where individual accounts are kept in a subsidiary ledger for salesmen, credit the total to Commissions Payable 30C, and post items to the individual ac- counts. Commissions to be deducted from customers' settlements, may be credit- ed to one account designated as ''Deductible Commission." Where there are few salesmen's accounts or where there is no subsidiary ledger they may be kept in the General Ledger and numbered 30-Cl, 30-02, etc., and credits posted to these accounts individually. SALES ANALYSIS. Lumber, Shingles, Lath, etc. (Form 5) This form (especially devised) shall be used to analyze the lumber products disposed of and will be controlled by the sales distribution columns in Sales Journal, Form 4. The Fir total column is for the total of fir Sales in Quantity and Amount. Columns 1 to 9, inclusive, are for the distribution of Fir lumber to the Standard Group Classifications adopted by the Industry. The items of lumber comprising each group are fully detailed following the explanation of this form. The f . 0. b. value of lumber shall be calculated on copy of invoices in two special columns showing estimated freight and f . o. b. amount opposite each item (see sketch appended) , and analyzed as to Fir, entering feet and f . o. b. amounts in respective columns on Sales Analysis. For the purpose of reference the invoice number will be entered in column provided therefor. In the blank columns following ** Invoice Number" show other species such as Cedar, Spruce, etc., and make such grade distributions as are desired. Shingles will also be analyzed as to grades if desired. West Coast Price List arranged according to Standard Group Classifica- tions of Fir Log. GROUP No. 1— No. 3 Clear & Better, 2-in. and Under, 40 Ft. and Under, in- cludes : 1x3 to 6 Fir Flooring. 1 1/4x3 to 6 Fir Flooring." IV4, lil>, 2x8 to 12 Stepping. 1x4 to 12 Finish. ^ 11/4x4 to 12 Finish. No. 1, 2 and 3 Clear & Better. No. 1, 2 and 3 Clear & Better. No. 2 Clear & Better. No. 2 Clear & Better. No. 2 Clear & Better. ^ lV2x4 to 12 Finish. 2x4 to 12 Finish. 4-in. to 6-in. Casing. 8-in. to 12-in. Base. 3/8 x4 Ceiling.^' y2x4 Ceiling^' 5/8x4 Ceiling.>/ 1x4 Ceiling.^' 1x4, 6, 8 Droj) Siding and Rustic.*'' 1x3 Well Tubing.^ 1x6 or 2x6 Well Curbing. ^ 1x4 and 6 Corn Cribbing. 2-in. Tank Stock. - 2x4 and 6 Pipe Stave Stock. 2x6 Silo Staves. 2-in. and 3-in. Battens. / Wagon Bottoms. Fir Pickets. Fir Mouldings.' 1x4 and 6 Car Siding and Roofing.*^ 2x4, 8 and 10 Car Decking. 1x4 and 6 Car Lining. 3/4x8, 10 and 12 Panel Lumber. 1-in., 1^/4, 11/2 and 2-in. Factory Lumber. 1 1/8 and 1 3/8 Sash, Door and Panel Stock. ^ No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. Clear Clear Clear Clear Clear Clear Clear Clear Clear Clear Clear 3 Clear 2 Clear Clear Clear Clear Clear Clear Clear No. 2 Clear No. 2 Clear No. 2 Clear Sel. & Btr. No. 1 Shop, & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better. & Better, and No. 1 No. 1 Cuttings. Shop. GROUP No. 2— No. 3 Clear & Better, 2y2, 3 and 4 (green only) Finish. ^ 4x4 to 8x8 Fir Squares. 3-in. Tank Stock.- 214, 21/2 and 3x6 Pipe Stave Stock. 4x6 and up Pipe Stave Stock. All Fir Decking thicker than 2-in. 3x4, 4x5 and 6 Eave Gutters, w-* All Porch Columns. *^ All Fir Newals. Porch Rail thicker than 2-in. Factory Lumber thicker than 2-in. over 2-in., 40 Ft. and Under, includes No. 2 Clear & Better. No. 2 Clear & Better. No. 2 Clear & Better. No. 2 Clear & Better. No. 2 Clear & Better. No. 2 Clear & Better. No. 2 Clear & Better. No. 2 Clear & Better. No. 2 Clear & Better. No. 2 Clear & Better. No. 2 Clear & Better. ■•?« GROUP No. 3— Select Com. and Merch., 40 Ft. and under, includes: 1x4 and 6 Corn Cribbing. ^ Sel. Com. 4x4 and 5x5 Windmill Stock. Sel. Com. ^ ^, ^ ^^ 6x16 and 10x18 Bridge Stringers.^ Sel. Com. 2x6, 8x10 Car Decking. - ' Sel. Com. Standard Car Framing.*^ GROUP No. 4 — No. 1 Com. Timbers 6x10 and larger, 40 Ft. and under, includes: 6x10 to 24x24 Timbers 40 Ft. and Under. No. 1 Com. Bridge Stringers and Car Sills 40 Ft. and Under. GROUP No. 5 — No. 1 Com. Plank 3-in. and 4-in., small timbers 8x8 and under, 40 Ft. and under, includes: All Fir Com. Plank and Small Timbers. Railroad Ties. GROUP No. 6— Includes No. 3 Clear & Better, 42 Ft. and Over: Self Explanatory. GROUP No. 7 — Includes other grades 42 Ft. and Over: Timbers requiring two or more cars 42 Ft. and longer. Car Sills 42 Ft. and longer. GROUP No. 8 — Includes 1-in. and 2-in. No. 1 Common: 1x2 to 12 Boards or Shiplap. No. 1 Com. 2x3 and up. Dimension. No. 1 Com. 2x6, 8 and 10 Car Decking. No. 1 Com. GROUP No. 9— Includes: All No. 2 Com. and poorer regardless of Size. In compiling the foregoing classification each item in West Coast Price List has been taken and placed under its proper group. The explanation under each group will assist in the placement of items not listed. By keeping the Fir Lumber segregation of sales, and by classifying inven- tories according to the same groups, it will be possible for the mill to know its log run value for any period in percentages and the amount received per grade, for comparison with the Typical Fir Log and market values as reflected by monthly statements issued by the Association. r't^'fffTr' INVOICE COPY. ACTUAL SIZE 91/2 X 11 inclies. Estimated Freight F. O. B. Amount DISTRIBUTION. (Form 6) This form (especially devised) shall be used for making distribution as ex- plained in the text. REFERENCE— AMOUNT Above these headings shall be shown the numbers of the accounts analyzed which shall be grouped according to Chart of Accounts under controls A, B, C, D-E and 500. At the end of each month totals shall be summarized on same form using a line for each month and carrying cumulation total from month to month. At the end of each month the total items entered on the distribution sheets must agree with the balances of the respective controlling accounts. (0 nno'Hl) •jii IT i>yqi;o'i Iv/ .OOg ij JOURNAL VOUCHER. (Form 7.) This form shall be used for the purpose of giving full detailed explanatory note with respect to those journal entries otherwise lacking documentary evi- dence to support the entry made on Journal and Voucher Register, Form 3. (.V f'. INSURANCE REGISTER. (Form 8) This form (especially devised) shall be used to record policies in force. Enter policies grouping them as to risks if possible and leaving a space of three lines between each entry. Prorate each premium entry. At the end of each month total current month column and journalyze as fol- lows: ,, i Dr: Insurance 558 Cr : Unexpired Insurance Premiums diaow PREPAID SUPPLIES AND EXPENSES REGISTER. (Form 9) This form (especially devised) shall be used to determine the monthly charge for supplies and expenses the benefit from which extends beyond the current month. All items charged to Prepaid Supplies and Expenses shall be entered in de- tail on this form, an estimate made of the number of months during which the benefit derived therefrom will accrue and the total charge equally divided among the months affected. Any balance unused at the end of fiscal year will be carried forward to the following year. At the end of each month total current month column and journalyze as follows : Dr: Operating Accounts Cr: Prepaid Supplies and Expenses 21 h^ IL V'>^ ACCOUNTS RECEIVABLE. (Forms lOA, lOB, IOC.) These forms (especially devised) may be used for individual accounts ra- ceivable record. Form lOA has been devised for such concerns as desire to keep full segre- gations of cash, freight, commissions, discounts, claims, etc., in vertical columns for each customer. Form lOB has been devised to facilitate the recording of settlement in part and carrying forward balances. Form IOC has been devised with the view of maintaining simply a debit and credit account on each line, or for using each block of five spaces for a car, and detailing settlement as to cash, freight, commissions, discounts, claims, etc. .:ija bearv^b ylijai' fi i;v>"rn ■ .8'JDUBfjBd b-IfiWlot ^iliYilii'J bffJJ (t iltr/r b'^srvfib iisscf aBff r>OX miiVA PAY ROLL. (Form 15) This form (especially devised) may be used for pay roll purposes. It is in- tended that it shall be used as a recapitulation of time, distribution, deductions, etc., for individual men on time sheets shown by exhibits 16A and 16B. TIME SHEETS. (Forms 16A and 16B.) These forms (especially devised) are for the purpose of keeping daily indi- vidual records for each man of time worked, distribution, and in the lower por- tion of forms, deductions such as hospital and first aid, board, advances, includ- ing amounts and check numbers, etc. Only the principal labor accounts have been shown. The blank lines shall be used for other accounts chargeable, such as repairs, capital expenditures, etc. The total hours, rate, amount earned, deductions, etc., are transferred to the Pay Roll, Form 15, at the close of the month. The distribution may either be carried to the Pay Roll or consolidated on separate distribution sheets, Form 6. J>i i..o( m:»u 1 ill ui ; i n >,.,.,. ff. „.,n- r •Mib^b J[)9trui9 iuuorufi <9ii MONTHLY EEPORT. The monthly report comprises the following statements: Condensed Comparative Balance Sheet, Form 30. Condensed Operating Statement, Form 31. Detailed Operating Statements, Forms 32A, 32B, 32C. After all the current month's entries have been made a Trial Balance of the General Ledger shall be obtained on a Standard Trial Balance Form. The Distribution sheets, Form 6, shall be footed and the totals reconciled with the controlling accounts A, B, C, D-E and 500. No account shall be closed monthly. Statements shall be prepared from the Trial Balance, Distribution sheets, and Inventories at the end of the month either estimated or actual. The preparation of Statements should be handled in the following manner: Proceed as follows: STATEMENT 32C. Post in first column from Distribution sheets the charges to Power, Light and Water Account 400, and show distribution of same. Post charges to Shipping, 390A to 390C, and foot. Post charges to Administrative, accounts 550 to 562, and distribute to de- partments affected according to established method provided for the distribu- tion of each account. Post charges to Selling, accounts 510 to 514 and add on line 550-562 pro rata for administrative expenses as determined under ''Administrative." Total on line "M," and distribute to Lumber, Shingles, etc. Post charges to Financing, accounts 570 to 572 (inclusive) and 574, total on line "L," deduct the total of accounts 8b and 89, showing net amount on line '' J.'' This will complete statement 32C. :jt;,- t8 ^nti^noqO hftlfiit i(f iliiioin arii lo bfle sift itjs eerioinavnl bui. :es//oUo'i. faii Lt»diX>'i*^i vt.'i.j r; r ^f^^TRff*) t80*T 1--.; iiDi : •v.-ii.ji- ... ,;r-... toaiifi r^jjrnujiiiq ■;nO" 'f--:- '^ -' -t .-.■jg'iiiiir; j«o-x STATEMENT 32B. BY PRODUCTS Enter in column 1 Sales for Lath 63, and Wood and Sawdust 64. Enter in column 3 purchases if any, account 93. Enter in columns 4, 5, 6, 7 and 8 charges from distribution, Form 6, ac- counts 300 and 310. Enter in column 10 Inventory at the beginning of period. Enter in column 11 Inventory at end of period. Enter in column 9 the difference between Inventories, increase in red and decrease in black. Enter in column 2 the total of columns 3 to 9, inclusive. Enter the difference between columns 1 and 2 in column 12, profit in black and loss in red. Total column 12, lath and wood net profit or loss and insert on line **0.'' MISCELLANEOUS OPERATIONS Enter in column 1, Sales or revenue of Miscellaneous operations, less pro- portion of selling expenses as shown on Form 32. Enter in column 3 purchases if any. Enter in columns 4, 5, 6, 7 and 8 charges from Distribution, Form 6, adding to column 6 proportion of administrative expenses from Form 32 C. Enter in column 10, inventory at beginning of period if any. Enter in column 11, inventory at end of period if any. Enter in column 9 the difference between inventories, increase in red and decrease in black. Enter in column 2 the total of columns 3 and 9, inclusive. •{/i/i 'r DOiKjq .9/ if. ".ro RUOMVfAv.Iv? Enter the difference between coliunn 1 and 2 in column 12, profit in black and loss in red. Sub total column 12 on line following Shingle Mill. Total column 12, miscellaneous net profit or loss and insert on line ^'N." Transfer to Detailed Operating Statement, Form 32A, in column "C" on line 550-562 under Logging Costs and Manufacturing Costs, administrative ex- penses as shown in the statement 32C. Transfer to Condensed Operating Statement, Form 31, in column 2, lines 33 and 34 the amounts chargeable against Lumber for Shipping and Selling ex- penses and in column 3 line 65 the net amount shown in line **J," Form 320. Transfer to Statement, Form 31, on line 52, column 2, net profit or loss on By Products shown on line ''O," and on line 57, column 2, amount shown on line ' ' N " both on Statement, Form 32B. STATEMENT 32A. Prepare Statement Form 32A as follows: Enter in colunms A, B, C, D and E the totals shown on Distribution Sheets, Form 6, accounts 100 to 128, 130, 200 and 221, 229 to 233. At this point all charges shown on the Distribution Sheets, Form 6, will have been posted to statements, excepting 573. Cross foot columns A, B, C, D and E and enter total in total column. Foot all columns vertically as follows: Add lines 100 to 104, inclusive, enter totals on line Z and prove. Add line Z to line 109, insert total on line Y and prove. Add lines 110 to 115, inclusive; insert totals on line X and prove. Add line X to line 119 ; insert totals on line W and prove. Add lines 120 to 550-562, inclusive ; insert totals on line V and prove. Add lines X, W and V; insert totals on line U and prove. .ho'i m ?ao[ f)itri IfTerrrAtiiiH »ff t AfTi r ^. (fatrr' bnu V .L'S- fiwoila ai^^iiiKi'iH \U tfroaro ''LUlilOL. np.rrf?Si: :>A .avoiq has Y sar igijfoii. at OS:i 89L Add line U to line 330; insert totals on line T and prove. Add lines 200 to 221, inclusive; insert totals on line S and prove. Add line S to line 229; insert total on line R and prove. Add lines 230 to 550-562, inclusive; insert totals on line Q and prove. Add lines R and Q; insert totals on line P and prove. On this form, by using a second sheet, will also be accumulated the opera- tions for all the months of the year to date. For feet column see explanation under Scales. STATEMENT 31. Transfer from Statement, Form 32 A, total amount on line T to line 4, and total amount on line P to line 27, in columns 2 and 6. From Trial Balance and Inventories the remaining amounts will be obtained as follows: ' Line 3, columns 2 and 6, balance of acount 4A and inventories. Line 5, columns 2 and 6, balance of account 90B. Add lines 3, 4 and 5 and insert total on line 7, columns 3 and 7. Line 8, columns 3 and 7, from inventory. Subtract line 8 from 7 and insert difference on line 10, columns 3 and 7. Line 13, columns 2 and 6, balance of account 60A. Line 14, columns 2 and 6, balance of account 60B. Line 15, columns 2 and 6, balance of account 60C. Line 16, columns 2 and 6, balance of account 60D. Add lines 13, 14, 15 and 16, insert total on line 18, columns 3 and 7. Subtract total on line 10 from total on line 18 and insert total on line 20, columns 3 and 7, loss in red. inuhv .H-jii h A nil bbA [ij Line 22, column 3, inventory adjustment covered under "Explanation of Scales." Line 25, columns 2 and 6, balance of account 4B and inventory. Line 26, columns 2 and 6, balance of account 90A. Line 28, columns 2 and 6, balance of account 98A. Add lines 25, 26, 27 and 28, insert total on line 29, columns 3 and 7. Line 30, columns 3 and 7, from inventory this amount not being shown on books. Subtract line 30 from line 29, insert difference on line 32, columns 3 and 7. Add lines 33 and 34, insert total on line 36, columns 3 and 7. Add lines 32 and 36, insert total on line 37, columns 3 and 7. Line 39, columns 2 and 6, balance of account 61 less balance of account 061 A. Line 40, columns 2 and 6, balance of account 62A. Add lines 39 and 40, insert total on line 42, columns 3 and 7. Subtract line 37 from line 42, insert difference on line 44, columns 3 and 7, loss in red. Lines 46 and 47, column 3, inventory adjustments covered in ''Explanation of Scales." Transfer balances of net profit or loss shown on lines 20 and 44 to lines 50 and 51, column 2. Add lines 50, 51 and 52, insert total on line 55, columns 3 and 7. Lines 58, 59 and 60, columns 2 and 6, balances of accounts 86, 87 and 573. Add lines 57, 58, 59 and 60, insert total on line 64, columns 3 and 7. Add lines 55, 64 and 65 ; insert total on line 67, columns 3 and 7. This last amount must agree with Profit and Loss for Current Month as shown on Balance Sheet, Form 10. The Condensed Comparative Sheet, Form 30, can now be prepared. The Assets and Liabilities at the beginning of the fiscal period shall be entered and totaled in column 2. The Assets and Liabilities at the end of each month shall be entered and totaled in column 1, the balances being obtained from the Trial Balance except- ing for the Inventories, account 4, which with the exception of 4H, will not be used. The inventories of Logs, Manufactured Products and Merchandise used to determine the profit or loss in the Operating Statement shall be inserted in- stead. METHODS OF DETERMINING PRODUCTION AND SCALES. ACTUAL PRODUCTION. When physical inventories are taken the actual production of Logs, Lumber, Shingles, Lath, Box Shooks, etc., shall be determined as follows: To the physical inventory, at the end add the feet or pieces disposed of and deduct purchases and the inventory at the beginning. The remainder will be actual production for the period. FEET TO USE ON FORM 31. If physical inventories are taken only periodically, not each month, these inventories shall only be shown at the end of period on the statement, column 5, line 8, and the actual production on line 4, column 5. Inventory adjustments necessary to bring the monthly statement in balance with the period or the cur- rent year to date shall be made on line 22. Follow the same procedure for lumber. When a physical inventory is taken it shall be recorded in column 5, line 30, and the actual production in column 5, lines 26 and 27. Regardless of inventories the production should be shown in column 1, line 4, for logs and lines 26 and 27 for lumber, according to the usual method of calculating production for monthly statements. To reconcile the statement for the month to actual production carry an in- ventory adjustment item on line 47 for lumber. Whenever it is practical to take phj^sical inventories each month they should of course be used in determining the production, line 4 for logs and lines 26 and 27 for lumber, columns 1 and 5. Physical inventories should be taken at least twice each year, on June 30th and December 31st. If physical inventories are not taken each month the best obtainable tallies should be used in determining production. Tallies used for productions should be closely followed by the management in order that every precaution will be taken to assure that they reflect the actual as nearly as possible. One of the important features of Form 31 is that in recording the inventory adjustment as outlined and comparing this adjustment to the actual production for the year, column 5, lines 4, 26 and 27, it is possible to check the results ob- tained from tallies used and the experience thus gained may be of assistance iu adjusting future tallies. Under the logging portion of statement the production is to be reported in Log Scale feet, and all calculations in so far as logs are concerned made on this basis. ji The feet shown on line 26 for logs sawn is the BM production, either a known quantity determined by inventories or an estimated quantity determined by tallies. The dollars are the same as line 13, but the footage is increased by over run of lumber scale over log scale, either a known quantity or estimated, based on scales available. The footage shown on lines 26 and 27 are the same. All quantities used on lines 32 and below should be the footage disposed of. If it is desired to analyze Selling line 31 for sales it should be done on a supple- mentary statement. FEET TO USE ON FORM 32A. 100 Contract Logging — Log Scale feet delivered by contractors. 101 Rigging Ahead — Log Scale feet delivered to pond from Company's Logging Operation. 102 Falling and Bucking — Log Scale feet Failed and Bucked if available, other- wise feet delivered to pond. 103 Yarding and Loading — Log Scale feet delivered to pond by Company's Logging Operations. 104 Wire Rope — Same feet as for 103. Z Total— Same feet as for 103. 109 Depreciation — Same feet as for 103 Y Total — Same feet as for 103. 110 Railroad — Same feet as for 103. 111 Spur Tracks — Same feet as for 103. 112 Water Haul — Log Scale feet hauled by water. 113 Other Haul — Log Scale feet hauled. 114 Booming and Rafting — Log Scale feet handled by boom. 115 Boom Stick Towing — Log Scale feet sold. 120 to 123, inclusive — Same feet as for 103. 128 Logs Lost — Same feet as for 103. 550 to T, inclusive — Same feet as for 103. 200 Pond and Log Yard Cost — BM Production of plant based on actual or tallies. 201 Saw Mill— Same feet as for 200. 202 Sorting Table — BM over tables, i. e., total production less footage not pass- ing over tables. 203 Dry Kiln— BM handled thru kilns. 204 Timber Dock — BM handled over timber dock. 205 Transportation — BM handled by transportation facilities. 206 Piling— BM piled. 207 Rough Dry Shed— BM to Dry Shed. 208 Dry Sorting — BM over dry sorting chain. 209 Finished Shed— BM handled. 210 General — Same feet as for 200. 220 Planing Mill— BM planed. 221 Sizer— BM thru sizer. S to P, inclusive — Same feet as for 200. .aoiiia.1 01 Adia. .^j^^ DA.TB ^^ r ASSESSED fon^ pue. THE P^^ ^TH J -:4 ^'E 0269 ^f^^4 UNIVERSITY OF CALIFORNIA UBRARY wmmmmmmfmmmmmmmmmifm^^ r,-; ; ^1: