Problem;

              30 HASKINS & SELLS April
Problem
F. B. Arnold, A. S. Burke, G. M .
Campbell, on January 1, 1918, became
parties to a joint venture, called a syndi­cate,
for the purpose of trading in securi­ties.
Each contributed $25,000.00 in
cash. The funds were deposited in the
Broad Street Trust Company where the
depositors were to receive interest on the
daily balance.
On January 17, there were purchased
for account of the syndicate 100 shares
of Prairie Oil and Gas (par value $100.00
per share) at 450 plus 1/8 commission.
On April 3, there were purchases of 400
shares of Seneca Petroleum (par value
$100.00 per share) at 14 plus 1/8. These
were sold on October 18 at 16 less
On April 3, there were purchases of 20
shares Hazeltine Copper (par value
$100.00 per share) at 554 plus 1/8; sold
on April 10 at 553 less 1/8. On May 28,
100 shares of Prairie Oil and Gas were
purchased at 492 plus
On May 15, the syndicate borrowed
from the Broad Street Trust Company
$30,000.00 at 5 per cent per annum. Dur­ing
the time they were held, and prior to
September 30, 1918, dividends on stocks
were received in the amount of $2,000.00.
The interest on bank balance to June 30
was $97.23.
On October 19, Campbell withdrew
from the syndicate. For the purpose of
settling with Campbell, the stocks on hand
were valued at the market and the follow­ing
items together with the balance of cash
incorporated in a statement made up with­out
closing the books :
Two hundred shares of Prairie Oil and
Gas at 529; cash dividend on Prairie Oil
and Gas anticipated as receivable October
31, 1918, $1,000.00; loan payable Broad
Street Trust Company, $30,000.00; inter­est
accrued on loan payable, $625.00.
The amount shown as the net result was
then divided by three, Arnold and Burke
each contributed $10,000.00 more in cash
and cash in the amount necessary to liqui-