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ACCIDENTS AND DAMAGES

Cost of accidents and damages to property and persons, including employees; damages done by company's employees to property of others; legal expenses, medical service, settlement of claims, salary and expenses of claim agent and assistants; wages to disabled employees while off duty.

TAXES

The monthly proportion of the annual amount assessed for taxes, federal, state and municipal, including all sums paid to the government under the terms of the franchise.

Do not include taxes paid on real estate not employed in the operating processes, nor the taxes paid on income derived from investments. The latter should be charged against the income from rents of real estate and the income from investments, respectively. As taxes are levied annually, it is necessary to estimate the amount at the beginning of the fiscal year. The monthly charges should therefore be by journal entry, crediting an account called "taxes accrued" and charging the operating account.

FURNITURE AND FIXTURES

Furniture and fixtures in general office and branches, including chairs, desks, tables, safes, automatic calculating machines, typewriters, and so forth. STORE ROOM-SALARIES AND EXPENSES, FREIGHT AND CARTAGE, SUNDRIES

room.

Under the respective headings, the cost of the storeIn many of the companies this cost is charged to a suspense account, which charge is extinguished by a credit arising from a given percentage added to each storeroom delivery slip or the total expense of the department is distributed over the accounts affected by storeroom deliveries. Either of the latter two plans is preferable, because then every operation of the company taking supplies from the storeroom bears its proportion of the expense of storing the supplies; whereas, if the cost of the department is charged entirely to expense, construction operations, which draw very largely on the supply department, are not charged with their actual cost.

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