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I 2-C—THE CHRONICLE, Clinton, S. C., Jan. 15, 1970 Minding Your Business' First-Year ^ Options • (Editor's Note: This is the first te a series of columns by John £ Sutherland of Clinton. Mr. Sutherland is a certified public accountant and his columns are designed to enlighten Chronicle readers about accounting and tax mijtters which they may face in t&feir everyday lives.) % accounting, however, a taxpayer reports all income that has been earned or sales charged to the customer and deducts all expens es incurred whether paid that year or later. BY JOHN J. SUTHERLAND : Certified Public Accountant ithoose your method of ac counting carefully when starting aihew business. You may have to life with it for some time. -J shall endeavor here to high light a few first-year options a- vgllable to new businesses. For a'iaxpayer starting a new busi ness during the year, the method of accounting is very important a$d the one chosen can greatly affect his taxable income for the first year and all subsequent years. Generally, having chosen a certain method of accounting, this method cannot be changed with out permission from the Internal Revenue Service. Under the hybrid method, gen erally sales and costs of sales are reported on the accrual basis and expenses are reported on the cash basis; that is, sales made and charged to a customer are reported as income and all costs of sales deducted whether or not paid. However, operating ex penses including labor, interest or anything else, generally are not deducted until paid. The In ternal Revenue Service, however, usually accepts any hybrid me thod so long as it is followed consistently. most of his expenses in cash, should choose the cash method of reporting income. This way he can defer paying income tax until he has received payment for his sales or services but can deduct all expenses that have been paid. It should be noted that these ex penses can be deducted even though the taxpayer had to bor row the money with which to pay them. The advantages and dis advantages of a hybrid method would have to be considered in each individual case and can not be generalized here. A tax payer, of course, has until the return is filed to make these de cisions. Once the return has been filed the method chosen is gen erally binding upon that year and all future years. Ridgell Named Area Alcoholism Representative E.C. Ridgell Jr., has been na med by the South Carolina Com mission on Alcoholism as its representative for Laurens county. Other first-year options will be discussed in future columns. A native of Batesburg, Mr. Ridgell received a B.S. degree from Wofford College and is a graduate of the Southeastern School of Alcohol studies at the University of Georgia. Prior to joining the staff of the Commis sion in 1969 as Educational Re presentative , he was associated with the Division of Disease Control of the State Board of Health. Self Foundation Gives $377,000 The Self Foundation made grants of $377,500 inl969toedu- dational and medical institutions, churches, research, and other organizations, the Board of Trustees announced. ' The three basic methods of ac counting are the cash method, accrual method, and a hybrid me- ti)Od which is a combination of tBe first two. Under the cash method, a taxpayer reports only such income as has been re ceived or constructively received ia cash during the taxable year and deducts only those expenses which have been paid. This me thod is not available to any tax payer who has inventories which would become a significant item in determine income. Under the accrual method of A businessman may readily see that depending upon his particular type of business one method may be highly favorable over another, but the decision must be made the first year as permission to change cannot be assured. Ob viously, a businessman who re ceives most of his sales in cash but has lines of credit so that his expenses are not paid until perhaps the following year should in all probability choose the ac crual method. Otherwise, he will find himself reporting his cash income and not being able to deduct his expenses until the following year. However, a busi nessman who has rendered ser vices during the year but will not be paid for these services until the following year and has paid A total of 55.4 percent of the grants went to beneficiaries in Greenwood County. “Emphasis is being placed on the utilization of existing agen cies in communities throughout the State”, D.C, Mason, Jr., Chairman of the Commission said today. “Only in this way can we be assured that some service is available to any alcoholic seek- referral. With provisions made by the General Assembly to con struct an addiction center in Col umbia, the need is even greater for a complete range of referral and follow-up resources in the local community.” The largest category of bene ficiaries were schools and col leges, who received $':83,000. Both independent and state-sup- ported institutions were included. Lander College here received $50,000. As representative for this area, Mr. Ridgell’s responsibi lities are to aid in the develop ment of local programs of assis tance to the alcoholic and his family, serve as liaison between existing programs and the Com mission, and to offer assistance, information, and service to the community when requested. Hospitals and related research was the second largest category, with grants amounting to $120,- 090. Other grants included YMCA’s, who received $40,000, churches, who received $31,500, and various others, a total of $3,000. Fish Out of Water XSJiwn’s Women's Acrylic Skirts 2.86 REG. 3.86 Bonded acrylic A-line and slims . . your choice of colors ... all sizes. Roll Sleeve Blouses REG. 96c Prints and solids with your choice collar styles . . sizes 32 thru 38 Flannel Gowns or Pajamas REG. 1.96 Granny style gowns and long pa jamas in pink, blue and maize. Women's T-Shirts 77c F Cotton knit basic solids and L stripes . . . S-M-L sizing. Spillers Again Flying No. 220 (Editor’s Note: The following article appeared in the Takhli Times in Thailand where Lt. Col. Jack C. Spillers of Clinton is stationed. He is the son of the Rev. and Mrs. J. W. Spillers. Rev. Spillers is pastor of Cal vary Baptist Church.) try sitting in North Vietnam in the middle of the bad guys, wait ing for the rescue helicopters to come to get you out." BY CART. SCOTT DUNCAN When Lt. Col. Jack C. Spillers flew his first mission here, he felt he was “back in the saddle again.” After some time in the hospi tal at Clark AB, Colonel Spill ers returned to Korat and flew another 54 missions to complete his combat tour of 100. Returning to the United States, he was as signed at the Pentagon where he worked in the Plans Directorate until reassigned to Takhli and the 355th Tactical Fighter Wing. A distinctive feature of the climbing perch, a fish native to Asia and Africa, is that it possesses special breathing equipment which permits it to leave the water and jour ney overland in quest of a new place to live “On my first tour in Thailand, I was asigned an F-105 number 220. That was the bird I flew on my last mission from Korat (RTAFB). And when I got here, 220 was the plane I flew on my first mission at Takhli (RTAFB).” “I planned to come back to the F-105 during my entire tour at the Pentagon. It’s a great airplane and the thing I like most about it is that its crew is limited in size. Either you’re all alone or it’s just you and your back-seat- er. That’s a good feeling.” Colonel Spillers, a 15-year Air Force veteran from Clinton, S. C. came to Thailand initailly in Dec ember of 1966. At that time he was assigned to the 469th Tacti cal Fighter Squadron of the Ko rat based 388th Tactic Fighter Wing. “I only stayed at Korat until August of 1967, but I did manage to have a busy and interesting year while I was there,” Col. Spillers said. And how does it feel to be back in 220 again? “Great, just great. The only problem is that the plane belongs to the 333rd Tactical Fighter Squadron while I'm a member of the 357th. But I have a feeling that I’ll get that airplane over in our outfit some how,” Colonel Spillers noted. The “busy and interesting year ...” included flying 100 mis sions over North Vietnam, being shot down on Easter Sunday, 1967 and winning a Silver Star and two Distinguished Flying Crosses. And if he does, an F-105 will once again carry a picture of an Aladen’s lamp with a cloud of smoke and a genie coming out the spout. The reason for the unusual design. “Simple, My wife’s name is Jean, so 220 was known as the "I dream of Jeanie.” With a little luck, it’ll be called that again!” “I don’t think I’ll ever see another Easter without thinking about March 26, 1967. We were flying just north of the Demili tarized Zone, when I was hit and had to bail-out. If you want to know what the word ionelv’ means. Industrial unions, some times called vertical unions, include all workers in the in- d us try. regardless of the particular kind of work they might do The United Mine Workers is an example of an industrial union. WINS CONTEST—Frances Brock of Joanna, dis tributor of Vanda Beauty Counselor, was presented a new 1970 Ford Galaxy as a prize for sales achievement and work by her counselors. Also shown above is William C. Patterson of Laurens. \&izcn , £ SETA OGRAPH OF YOUR CHILD Living Color 8x10 Satisfaction guaranteed h PLUS 50t FILM CHARGE Two Days Only FRIDAY AND SATURDAY January 16th and 17th Hours: 10 Til 1 — 2 Til 5:00 Friday Night Til 7:00 • NO APFOINTMINT NBBOBO • MLKTION OB SCWRAL fOIIS • SAIUM AND CHILOIIN Uf TO 1$ YIAftS OB AOI • BOSTSAIT DILIVIMD AT STOII A BIW DAYS AFT!ft TAKIN • SATMBACTION OOAftANTftftD • GROUP! |1jM BSft CHILD CLINTON PLAZA SHOPPING CENTER HIGHWAYS 56 AND 72. COL. SPILLEHS WITH F-105 Require Agents' Identification Taxpayers here should watch out for unscrupulous individuals posing as IRS employees to ex tort money on the pretense of satisfying unpaid taxes, H.M. Mc Leod, District Director of In ternal Revenue for South Caro lina, cautioned. McLeod said all bonafide em ployees of the Internal Revenue Service who contact the public carry distinctive identification. Ask to see these credentials if the person who claims to be an IRS employee approaches you and does not identify himself. REPORT OF CONDITION OF M. S. Bailey & Son, Bankers of Clinton, in the State of South Carolina, and Domestic Subsidiaries at the close of business on December 31. 1969 ASSETS Cash and due from banks U. S. Treasure securities Securities of other U. S. government agencies and corporations Obligations of States and political subdivisions .< 2.525,253.9Z . 3,004.388.4* .500,000.1 lo 2.372.250.31 Federal funds sold and securities purchased under agreements to resell Other loans SOO.fHMViM) <•>.743.099 71 Bank premises, furniture and fixtures, and other assets representing bank premises 351.209 S'! Real estate owned other than bank premises Other assets 1.00 180.(131 73 TOTAL ASSETS $18,182,298.02 LIABILITIES Demand deposits of individuals, partnerships and corporations $ 9,094.29-1.09 Time and savings deposits of individuals. partnerships and corporations 5.00(4.437.98 Deposits of U. S. Government Deposits of States and political subdivisions 400,074.32 Certified and officers’ (hecks, etc. TOTAL DEPOSITS $15,950,412.52 (a) Total demand deposits $10,176,707.39 1.324,921.92 70.684 21 (b) Total time and' savings deposits Other liabilities $ 5.173.705.13 131.144.82 TOTAL LIABILITIES $16,081,557.34 RESERVES ON LOANS AND SECURITIES Reserve for bad debt losses on loans (Set up pursuant to Internal Revenue Service Rulings) $ 147,.557.35 TOTAL RESERVES ON LOANS AND LIABILITIES $ 147.557.35 C APITAL ACCOUNTS Equity capital, total _$ 1.953.183.33 Common stock—total par value (No shares authorized, 10,000) Surplus 1.000,000.00 Undivided profits 250,000.00 _ 703.183.33 TOTAL CAPITAL AU’OUNTS $ 1,953.183.33 TOTAL LIABILITIES, RESERVES, AND CAPITAL ACCOUNTS $18,182,298.02 MEMORANDA Average of total deposits for the 15 cal endar days ending with call date Average of total loans for the 15 cal endar days ending with call date Unearned discount on instalment loans included in total capital accounts $16,567,650.07 6.685,729.44 75,940.79 I, Charles T. Copley, Assistant Vice-President of the above-named bank, do solemnly swear that this re port of condition is true and correct, to the best of my knowledge and belief. CHARLES T. COPLEY Correct: Attest—James Von Hollen, Robert M. Vance, George H. Cornelson, W. C. Neely, Directors. State of South Carolina, County of Laurens, sa: Sworn to and subscribed before me this twelfth day of January, 1970, and I hereby certify that I am not an officer or director of this bank. ELANDA W. HOLLEY, Notary Public My commission expires On November 14, 1979. M at b M at th< Char the M woo Mau Al retu