CHAPTER II. 



A COMPLETE SET OF ACCOUNTS FOR HIBBARD FARM. 



A full and complete memorandum is given in the follow- 

 ing pages covering all sales and purchases, feeds fed to live 

 stock, and application of labor on Hibbard Farm, North- 

 field, Minnesota, from January 1, to June 30, 1904. Com- 

 prehensively this memorandum may be said to include 

 all the business activities of the farm and family for six 

 months. 



The memoranda for the month of January are used to 

 illustrate the principles of farm accounting on the ledger 

 and auxiliary cards. The accounts used in the order of 

 their occurrence are F. C. Hibbard, Keal Estate, Cash, 

 Horses, Cattle, Hogs, Poultry, Machinery and Implements, 

 Oats, Barley, Corn, Hay, House Furnishings, Clothing, Food 

 and Fuel, Family Expense, Farm Expense, Mercantile Co., 

 Ground Feed, Mrs. Greason, Crescent Creamery Co., School 

 District No. 78, Mrs. Sherpy, Mrs. Dunlap, Loss and Gain, 

 Balance. 



HOW TO TAKE AN INVENTORY. 



An inventory is a list of property values. On the farm 

 an inventory is usually made for two general purposes: 

 First, to have accurate data with which to open or close 

 the farm books of accounts; second, to check up on the 

 different kinds of property so that the farmer may ascertain 

 whether the articles are being lost or not, and whether he 

 has enough of certain articles to last through seasons of par- 

 ticular necessity. But the value of inventories is not at 

 all limited to the generally recognized uses. They are par- 

 ticularly important in the adjustment of insurance, and the 

 settlement of estates. 



Beware of little expenses, a small leak will sink a ship. Franklin. 



